Mubasher TV
Contact Us Advertising   العربية

Saudi Airlines Catering inks SAR 27m baggage warehouse deal

Saudi Airlines Catering inks SAR 27m baggage warehouse deal
Saudi Airlines Catering signed a deal with Saudi Arabian Airlines
CATERING
6004
0.96% 105.40 1.00

Riyadh – Mubasher: Saudi Airlines Catering Company (SACC) on Thursday announced “embarking on a contract” with Saudi Arabian Airlines Est. to provide and operate a central baggage warehouse.

The three-year deal is worth SAR 27 million ($7.20 million), SACC said in a statement to the Saudi Stock Exchange (Tadawul), indicating that it expects positive results from the deal.

The financial impact of the contract will be seen in the results for the first quarter of 2018, the Saudi catering company said.

In addition to enhancing SACC’s relationship with Saudi Arabian Airlines Est., the new contract will “boost the business sustainability by increasing the company's cash flow”.

Saudi Arabian Airlines Est. is a related party and one of SACC’s major shareholders.

Saudi Airlines Catering last reported a 7.6% decline in net profits to SAR 131.02 million in the second quarter of 2017 from SAR 141.76 million in the year-ago period. 

Saudi Airlines Catering’s stock closed Wednesday in the red, shedding 1.21% to SAR 86.5.