Saudi Airlines Catering Company (SACC) renewed its in-flight catering agreement with Saudi Arabian Airlines Est. (Saudia) for 10 years for a value of SAR 12 billion.
The company said in a statement to Tadawul that the renewed contract will take effect, starting from Jan. 1, 2020, to Dec. 31, 2029, and shall govern SACC’s performance of in-flight catering services for Saudia’s domestic and international flights as well as a number of other support services.
The amount will positively reflect on SACC’s financial results in the first quarter of 2020, as well as on its business sustainability, cash flow continuation, and enhancement of its business relationship with Saudia.
SACC is also expected to greatly benefit from the increasing growth in Saudia’s fleet and the expected rise in its number of flights and passengers.
Saudia is one of the major shareholders of SACC, and is a related party to it.
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