Flynas Buys 10% Stake in Swissport Saudi Arabia for $13.3M

Flynas has agreed to buy a 10% equity stake in Swissport Saudi Arabia for $13.33 million (SAR 50 million) and signed Swissport as its exclusive ground-handling provider at all commercial airports in Saudi Arabia. Both agreements were signed on September 6 and disclosed in a filing with Saudi Tadawul.

The ground-handling contract starts on March 6, 2027, and runs until March 5, 2032. It can be renewed for an additional five years if both sides agree. Under a shareholders' agreement, Flynas gets a call option to purchase another 10% stake if that renewal happens. The option would double its holding to 20%. Flynas said the $13.33 million purchase price is in addition to a minimal variable equity consideration under the transaction agreements. The airline will finance the acquisition from internal resources. Completion still requires approval from Saudi Arabia's General Authority of Civil Aviation and the General Authority for Competition.

Flynas issued a termination notice to Saudi Ground Services on the same day. Its existing contract with that provider runs out on March 6, 2027. The new Swissport deal is expected to generate annual purchase volumes equivalent to about 5% of Flynas' revenue.

Swissport Saudi Arabia supplies passenger handling, ground management and supervision, surface transportation, cargo and baggage loading and unloading, and other ground services. Its total assets stood at $54.1 million (SAR 203 million) on May 31, 2026. At year-end 2025 they were $57.56 million (SAR 216 million); at year-end 2024 they were $31.4 million (SAR 118 million).

Flynas said the deal is intended to deepen its strategic relationship with Swissport and establish a long-term partnership. Chairman Ayed Al Jeaid described the direct investment in ground handling as a strategic extension of the airline's operations. Swissport confirmed it will be Flynas' exclusive ground-handling partner across the Saudi network for five years. Following the agreement, Swissport's share of Saudi Arabia's ground-handling market is expected to reach about 40%.

The structure ties Flynas' future to Swissport's performance: if the contract runs a full second term, the call option gives the airline 20% of the ground handler. Investors also treated the partnership as a competitive shift. Flynas shares rose 0.16% on Monday to $13.12 (SAR 49.2) by around 12:40 p.m. AST, while Saudi Ground Services shares fell 7.11% to $6.55 (SAR 24.6) at roughly the same time.