Saudi Catering inks SAR 9 mln deal with flyadeal

Saudi Airlines Catering Co. on Sunday signed a contract with flyadeal, a low-cost subsidiary of Saudi Arabian Airlines, to provide in-flight catering services and sell onboard food, beverage and other supplies, the company said in a statement on Tadawul.

The contract is valid for two years with a provisional value of SAR 9 million.

Catering expects a positive impact to reflect starting from the fourth quarter of 2017 due to increase in cash flow and enhanced business relationship with the companies owned by Saudi Arabian Airlines Co., the statement added.

Saudi Arabian Airlines is one of the major shareholders of Saudi Catering Co. which makes the deal is a related party transaction.