Saudi Airlines Catering Company (SACC), a publicly listed company, announced signing a renewed version of it’s in-flight catering agreement with Saudi Arabian Airlines Est. (Saudia), which currently ends on the 31st of December 2019 and is renewed to be effective for a period of 10 years representing the longest contractual period between both parties in relation to in-flight catering services. The renewed contract shall take effect starting from the 1st of January 2020 until the 31st of December 2029 and shall govern SACC’s performance of in-flight catering services for Saudia’s domestic and international flights as well as several other support services. The provisional value of the contract is estimated at twelve billion Saudi Riyal.
The company announced through a statement in Tadawul that it expects the contract to be positively reflected on its financial results starting from the 1st quarter of 2020, in addition to business sustainability, cash flow continuation, and enhancement of its business relationship with Saudia. SACC is also expected to greatly benefit from the continuous growth of Saudia’s fleet and the increase of its number of flights and passengers, being one of the leading airline carriers in the region.
Mohammed AL-Sarhan, Chairman of the board at Saudi Airlines Catering Company commented on the renewal of the contract by stating:” we are extremely proud about our 38 years strategic partnership with Saudia, which is a testimonial to our company’s expertise and the trust that is put on us by our esteemed clients. The company has been evolving over the decades to continuously match the developments of its customers and their changing needs. We will continue this path by investing in the best resources and entering new markets, positively impacting our investors, customers and employees”
From his side Wajdy Al-Ghabban, CEO at Saudi Airlines Catering Company, confirmed the readiness of the company to provide its services at the highest level going in parallel with the vision and plans of Saudia and said: “SACC was established in 1981 to provide catering services to Saudia. It blossomed over the years to become the partner of choice in the in-flight catering industry serving more than 90 local and international airlines with more than 90% market share”
He added: “our company offers a wide range of products and services, including catering and hospitality services in remote sites and Hajj & Umrah, this is in addition to our retail and support services provided to local and international clients. This contract will support in business sustainability and moving forward with our strategic diversification”