Riyadh Air awards SAR1.5bn ground handling contract to SGS

Saudi Arabia’s newest airline, Riyadh Air, has confirmed a SAR1.5bn($400m) contract for ground handling services at Riyadh’s King Khalid International Airport.

The contract, awarded to Saudi Ground Services Company (SGS), was announced on the Saudi Stock Exchange and marks a significant milestone in the airline’s preparations to launch operations.

The agreement, effective from September 1, spans 4.5 years with an option to extend for an additional two years.

If extended, the contract’s total value could reach approximately SAR1.5bn over 6.5 years.

The long-term partnership ensures that Riyadh Air will receive comprehensive ground handling services, including baggage handling, aircraft servicing, and passenger support, as it readies itself to serve both domestic and international markets.

This strategic move highlights Riyadh Air’s commitment to establishing a robust operational infrastructure, aligning with the broader goals of Saudi Arabia’s Vision 2030.

Launched in 2023 by the Public Investment Fund, Riyadh Air aims to diversify the kingdom’s economy by bolstering key sectors such as tourism and transportation.

Green ground transport

In a related development, Riyadh Air has introduced Saudi Arabia’s first 47-seat electric coach, reflecting the airline’s dedication to sustainability.

Developed in collaboration with National Transportation Solutions Company (NTSC), a subsidiary of Petromin Corporation, and TAM-Europe, the electric coach aligns with the United Nations Sustainable Development Goals, noted the airline in its press release.

This state-of-the-art vehicle is the first in a planned fleet of electric buses that will be used to transport Riyadh Air staff and aircrew across the capital, reducing the airline’s environmental footprint.

The launch of the electric coach was attended by Tony Douglas, CEO of Riyadh Air; Kalyana Sivagnanam, Group CEO of Petromin Corporation; and Gary B Flom, CEO of NTSC. Douglas emphasised the airline’s commitment to sustainable practices, noting that such initiatives are vital in the global fight against climate change.

New sustainable addition!
We are delighted to announce that our electric coach has just arrived and is ready to transport our employees with comfort and environmental care.

Watch the video of its arrival!
#RiyadhAir #SustainableMobility pic.twitter.com/2uPUpAlEWO

— Riyadh Air (@RiyadhAir) August 11, 2024

Riyadh Air has also been active in forging international partnerships. In July, the airline struck a deal with US carrier Delta Air Lines to expand destination options for Delta flyers, including a planned nonstop service between the US and King Khalid International Airport.

Additionally, Riyadh Air is expected to announce a fleet of narrow-body jets later this year as part of its first-phase expansion.

This expansion will eventually include a new terminal designed to meet Saudi Arabia’s ambitious tourism targets, which aim to attract more than 150 million visitors annually by 2030. Tourism is projected to contribute 10 per cent to the kingdom’s non-oil GDP as part of its broader economic transformation programme.

Read: 100 cities by 2030: Riyadh Air COO underlines ambitious goal