Menzies Aviation and SAL Saudi Logistics Services said they have signed a Memorandum of Understanding to develop a comprehensive study on delivering best in class passenger handling services for low-cost carriers at Saudi Arabia airports.
Menzies Aviation is the world’s largest aviation services company with operations at more than 250 airports in 58 countries. It provides ground services, fuel services and air cargo services.
The £571 million cash takeover of Edinburgh-based airport logistics giant Menzies by Kuwait-based National Aviation Services (NAS), a subsidiary of Agility Public Warehousing Company, was finalized in August 2022.
The acquisition price of £6.08 per share represented a premium of 81% to the Menzies closing share price of £3.35 on February 8, 2022, the last business day prior to the offer period.
“Under the MoU, Menzies Aviation and SAL Saudi Logistics Services will work together to explore the potential of providing passenger handling services for low-cost carriers at Saudi’s airports with the aim of implementing industry best practice to improve passenger services, enhance the efficiency of operations, and support the Kingdom’s Vision 2030 targets associated with upgrading and developing airport services to be on par with the world’s leading and most advanced international airports,” said Menzies.
“SAL Saudi Logistics Services is the market leading air cargo handler in the Kingdom of Saudi Arabia and recently obtained a license to provide ground handling services in Saudi airports from the General Authority of Civil Aviation (GACA), enabling the company to continue offering high quality, professional logistics services at the Kingdom’s airports.”
Faisal AlBedah, Managing Director and CEO of SAL Saudi Logistics Services, said: “This MoU will enable SAL to utilize Menzies’ global capabilities and expertise.
“It is also aligned with our ambitious vision to become the logistics champion for a globally connected Saudi Arabia.
“We believe the MoU will result in significant improvements in Saudi’s airport services, increasing capacity and enhancing the customer experience and satisfaction, in line with the highest international safety and security standards.
“Our approach complements the National Transport and Logistics Strategy, in parallel with the Kingdom’s Vision 2030 towards welcoming 330 million travelers by 2030.
“This will be achieved by offering cutting-edge innovation, integrated logistics services in airports and building a wide network linking domestic airports, seaports and land transport hubs to ensure the ongoing development of this vital sector and increase its contribution to the Saudi GDP, as well as driving the national economy in light of the Kingdom’s ambitious vision.”
Menzies Aviation CEO Philipp Joeinig said: “This collaboration has huge potential not only for our businesses, but for the country’s aviation industry more broadly as the Saudi 2030 vision aims to increase passenger numbers significantly by the end of this decade.
“The agreement strengthens our position and relationships in the Middle East, which is a key market for Menzies as we look to accelerate our growth and bring the highest standards of aviation services to countries all over the world.
“I would like to thank Mr AlBedah and the team at SAL for the opportunity to work together and explore how we can help unlock the potential of Saudi’s airports.”