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Riyadh Air awards $400m ground handling contract

By Pramod Kumar
Saudi Ground Services will provide ground handling services for all Riyadh Air flights at King Khalid International Airport Riyadh Air/X
Saudi Ground Services will provide ground handling services for all Riyadh Air flights at King Khalid International Airport

Riyadh Air, Saudi Arabia’s new national carrier, has awarded a SAR1.5 billion ($400 million) ground handling services contract in the kingdom as it gears up to launch operations next year.

The 4.5-year contract, with an option for a two-year extension, was awarded to Saudi Ground Services Company, which trades on the Saudi stock exchange.

Under the contract, Saudi Ground Services will provide ground handling services for all Riyadh Air flights, including ramp and passenger terminal services for domestic and international flights at Riyadh’s King Khalid International Airport.

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Riyadh Air, owned by the Public Investment Fund, is intended to replace the state-owned Saudia in the capital, and cater to tourist expansion.

In July the company struck an agreement with US carrier Delta Air Lines to open new destinations in the kingdom and beyond for Delta flyers. The partnership includes a future nonstop service on Delta between the US and King Khalid International Airport. 

In May, the airline said it would announce a fleet of narrowbody jets later this year for a first-phase expansion that will eventually include a new terminal to meet Saudi tourism ambitions.

The government is aiming for more than 150 million visitors a year by 2030 as part of the country’s massive economic transformation programme. Tourism is targeted to cover 10 percent of non-oil GDP.

Riyadh Air had previously ordered 72 widebody Boeing Dreamliner 787s and was making sure they were delivered on time for the start of operations in mid-2025 with no delays, chief commercial officer Vincent Coste told AGBI. 

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