Saudi Airlines Catering signs 12 bln riyals 10-year contract with Saudia

Saudi Airlines Catering Company has signed a ten-year agreement for in-flight catering services for Saudi Arabian Airlines.

The provisional value of the agreement is equal to 12 billion Saudi riyals ($3.2 billion), the company said in a filing with the Saudi stock exchange on Monday (Dec 23).

The agreement renews SACC’s contract with Saudia that will expire Dec 31.

SACC said the new agreement is the longest contractual period between the two parties.

The contract covers both domestic and international flights as well as a number of other support services, said SACC.

SACC said it expects to benefit from the increasing growth of Saudia’s fleet and the expected increase of its number of flights and passengers.

Saudia in September received its first Boeing 787-10 Dreamliner that will play a key role in its fleet and network expansion. The airline currently flies with 93 Airbuses and 48 Boeings, according to its website. 

Saudi Arabian Airlines is a major shareholder of SACC, holding around 35.7% of the company’s shares, according to the catering company’s website.

The renewed contract will take effect starting January 1, 2020 through 31st December 2029.

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