RIYADH: Saudi low-cost carrier flynas has agreed to acquire a 10 percent stake in Swissport Saudi Arabia for $13.33 million, alongside a ground-handling partnership covering commercial airports across the Kingdom. 

The Saudi airline also secured an option to acquire a further 10 percent stake upon renewal of its new ground-handling agreement with Swissport, according to a Saudi Exchange filing. 

Once the agreement takes effect, the company will become flynas’ exclusive ground-handling partner across its domestic network in Saudi Arabia. 

The transaction, agreed on Sept. 6, will be financed from flynas’ internal resources. Completion remains subject to customary closing conditions and approvals from the General Authority of Civil Aviation and the General Authority for Competition. 

“In connection with the Sale and Purchase Agreement and a Shareholders’ Agreement, flynas Co. has entered into a five-year ground handling agreement with Swissport Saudi Arabia Limited to provide ground handling services at all commercial airports in the Kingdom of Saudi Arabia,” the filing stated.  

The contract will run from March 6, 2027, to March 5, 2032, and may be renewed for a further five years subject to mutual agreement between the parties. 

The airline issued a termination notice to its current provider, Saudi Ground Services Co., on Sept. 6, ending the existing agreement effective March 6, 2027. 

The annual purchase volume under the Swissport agreement is expected to represent approximately 5 percent of flynas’ revenue. The airline did not disclose an absolute value for the service contract. 

Acquisition terms  

The sellers are Swissport International AG and Asyad Holding, the existing shareholders of Swissport Saudi Arabia. 

In addition to the fixed purchase price, flynas will pay a minimal variable equity consideration calculated according to a mechanism set out in the agreements. 

Swissport Saudi Arabia provides passenger handling, ground management and supervision, surface transportation, cargo and baggage handling and other ground services. 

Its total assets stood at SR203 million ($54 million) at the end of May, based on unaudited accounts. Audited figures showed assets of SR216 million at the end of 2025 and SR118 million a year earlier. 

Operational context  

Flynas’ 2025 initial public offering prospectus said Saudi Ground Services was then the only ground-handling provider covering every airport in the Kingdom, while Swissport operated at a limited number of locations. Swissport subsequently expanded its Saudi network to 13 airports in June 2025.  

The carrier reported first-half 2026 revenue of SR4.22 billion, up 6.2 percent from a year earlier, while its statutory net loss narrowed to SR122.7 million from SR714.6 million, according to a separate Saudi Exchange disclosure.