Riyadh Air, Saudi Arabia’s new national carrier, has awarded a SAR 1.5 billion (USD 400 million) contract to Saudi Ground Services Company (SGS) for ground handling services. This strategic partnership, effective from September 1, 2024, will span 4.5 years with an option to extend for an additional two years. The contract includes ramp and passenger terminal services for all domestic and international flights at King Khalid International Airport (KKIA) in Riyadh. This collaboration is a significant step in Riyadh Air’s preparations to commence operations by 2025, aiming to set new benchmarks in the global aviation industry.
The partnership between Riyadh Air and SGS is set to enhance ground services at King Khalid International Airport. SGS will handle all ramp and passenger terminal services, ensuring smooth and efficient operations for Riyadh Air’s flights. This includes managing baggage handling, aircraft marshaling, and passenger assistance, among other critical services. The comprehensive nature of this contract underscores Riyadh Air’s commitment to providing world-class services to its passengers.
Peter Bellew, COO of Riyadh Air, emphasized the importance of this agreement in the airline’s operational strategy. He stated that the ground handling services provided by SGS are crucial for delivering premium services and ensuring a seamless travel experience for passengers. The collaboration with SGS, a company known for its adherence to global industry benchmarks, is expected to significantly improve the efficiency of ground operations at KKIA.
The contract’s value and duration reflect the strategic importance of this partnership. By securing a long-term agreement with SGS, Riyadh Air aims to establish a stable and reliable ground handling framework that supports its ambitious growth plans. This partnership is also expected to contribute to the overall improvement of airport services in the Kingdom, benefiting both domestic and international travelers.
Strategic Significance
The awarding of this contract to SGS is a strategic move by Riyadh Air as it gears up for its official launch. The airline, backed by the Public Investment Fund (PIF), is positioning itself as a key player in the global aviation market. The partnership with SGS is part of a broader strategy to build a robust operational infrastructure that supports Riyadh Air’s vision of becoming a leading airline.
Raed H. Al-ldrissi, CEO of Saudi Ground Services Company, expressed his gratitude for the confidence shown by Riyadh Air’s executive management. He highlighted the significance of this partnership for SGS’s development projects and programs. The collaboration with Riyadh Air is expected to enhance SGS’s service offerings and strengthen its position as a leading ground services provider in the region.
The strategic importance of this partnership extends beyond operational efficiency. It also aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy and reduce dependence on oil revenues. By investing in the aviation sector and enhancing airport services, Riyadh Air and SGS are contributing to the Kingdom’s broader economic goals. This partnership is expected to create numerous job opportunities and stimulate economic growth in the aviation sector.
Future Prospects
Looking ahead, the partnership between Riyadh Air and SGS holds significant promise for the future. The successful implementation of this contract will be crucial for Riyadh Air’s operational readiness and its ability to deliver high-quality services. As the airline prepares to commence operations by 2025, the collaboration with SGS will play a vital role in ensuring a smooth and efficient launch.
The long-term nature of the contract provides a stable foundation for future growth. By securing a reliable ground handling partner, Riyadh Air can focus on expanding its network and enhancing its service offerings. The partnership with SGS is also expected to drive innovation in ground services, with both companies committed to adopting best practices and leveraging advanced technologies.
The broader impact of this partnership will be felt across the aviation sector in Saudi Arabia. By setting new standards for ground handling services, Riyadh Air and SGS are paving the way for improved passenger experiences and more efficient airport operations. This collaboration is a testament to the potential of strategic partnerships in driving growth and innovation in the aviation industry.
