Riyadh Air awards SAR 1.5 billion contract to Saudi Ground Services Company

Riyadh Air selects Saudi Ground Services Company through competitive bidding process in line with the airline’s preparations to commence operations by 2025. SGS will handle ramp and passenger terminal services for Riyadh Air’s domestic and international flights at King Khalid International Airport. Saudi Arabia’s new digitally native airline Riyadh Air, a PIF company, has appointed Saudi Ground Services Company (SGS), to provide ground-handling services and handle its passengers and ramp operations at King Khalid International Airport (KKIA) in the capital city. The Riyadh Air contract includes ramp and passenger terminal services for all its domestic and international flights at King Khalid International Airport (KKIA) in the city of Riyadh. The SGS contract will commence on the 1st of September 2024 and operate for 4.5 years (55 months), with an option to extend it for another two years. The full tender value, including the extension period, will be around SAR 1.5 billion (USD 400 million). The signing ceremony for the contract took place on 14 August 2024 at Riyadh Air office and was attended by Peter Bellew, COO of Riyadh Air, and Mohammed Mazi, acting CEO of Saudi Ground Services, along with key executives of the two entities.

Peter Bellew, COO of Riyadh Air, said: Every day, we are entering into agreements which will keep us on course to becoming operational by 2025. The ground handling services are an important part of delivering our world-class premium services, which we know will set new benchmarks in the global aviation industry. We were impressed with SGS Company and are confident this will deliver what Riyadh Air needs at the KKIA. Commenting on the partnership, Raed H. Al-ldrissi, CEO of the Saudi Ground Services Company, said: I extend my thanks and appreciation to the executive management of Riyadh Air for their confidence in Saudi Ground Services Company. Riyadh Air is a great addition to our portfolio of clients and strategic partners in the national and international airlines. This partnership is significant for SGS Company’s development projects and programs, services, and our vital role in improving the airport services in the Kingdom. The SGS Company provides its services in accordance global industry benchmarks and best practices, and we are proud to be part of the successful journey of Riyadh Air.
This strategic partnership aims to enhance cooperation between the two companies and provide comprehensive and effective services that ensure passengers are provided with a sophisticated and comfortable experience on board and improve the smoothness of aircraft operations on the runway. The services of the Saudi Ground Services Company will contribute to improving the efficiency of the aviation operations and enhance passenger experience.
This collaboration is part of Riyadh Air’s efforts to contribute to the development of the aviation sector in the Kingdom and globally, to boost the growth of the Kingdom’s non-oil GDP by up to SAR 75 billion, create more than 200,000 direct and indirect jobs, and enhance the competitiveness of the national companies.

Riyadh Air will commence commercial operations in 2025. An integral part of Saudi Arabia’s vision to create a global aviation hub, the world-class digitally native start-up airline aims to connect the Kingdom to 100 worldwide destinations by 2030, leveraging Saudi Arabia’s strategic geographical location between Asia, Africa, and Europe.