Post by : Shweta
Flynas Strengthens Ties with Swissport Saudi Arabia
In a significant move, flynas, a budget airline from Saudi Arabia, has decided to buy a 10 percent stake in Swissport Saudi Arabia for $13.33 million. This strategic alliance aims to enhance ground-handling operations at airports throughout the Kingdom, fostering better collaboration between the airline and Swissport while bolstering Swissport’s capabilities in assisting flynas.
Swissport to Serve Exclusively as Ground-Handler
The agreement stipulates that Swissport Saudi Arabia will serve as flynas' exclusive ground-handling partner within its domestic networks once finalized. The five-year contract, effective from March 6, 2027, to March 5, 2032, includes an option for a five-year extension subject to mutual consent. This shift indicates a new direction for flynas, which currently collaborates with Saudi Ground Services Co..
Future Stake Consideration
flynas will also possess the option to increase its investment with an additional 10 percent stake in Swissport Saudi Arabia at the renewal of the ground-handling agreement. The initial deal was finalized on September 6, 2026, and flynas intends to utilize its internal resources for this acquisition. The closing of the transaction is contingent on standard closing protocols and regulatory approvals from entities such as the General Authority of Civil Aviation and the General Authority for Competition.
Existing Ground-Handling Contract Termination
Flynas has notified its present ground-handling service provider, Saudi Ground Services Co., that the existing contract will terminate on March 6, 2027, coinciding with the commencement of the Swissport agreement. The anticipated volume of purchases under this new arrangement is expected to represent about 5 percent of flynas' revenue, although the airline has not disclosed the overall financial specifics.
Services Offered by Swissport
Swissport Saudi Arabia is set to deliver an extensive lineup of airport ground services, including passenger handling, ground management, surface transportation, cargo handling, and baggage services. As of the end of May, the company reported total assets of approximately SR203 million, whereas the audited assets were valued at SR216 million at the close of 2025, up from SR118 million the year before.
Read more : Emergency in Sarawak Declared Over Amid Persistent Pollution
Flynas Shows Revenue Improvement
This investment occurs as flynas witnesses ongoing business growth, reporting SR4.22 billion in revenue for the first half of 2026, which reflects a 6.2 percent rise compared to the same timeframe last year. The airline's net loss has also significantly reduced to SR122.7 million, down from SR714.6 million in the previous year.
English
