The statement did not explain the reason for the termination of the contract.
A quick background on the contract
In a statement published on the Kuwait Stock Exchange website on October 8, 2013, Agility announced the signing of a contract to provide ground handling services for a period of 10 years at airports in Kabul, Kandahar, and Herat in Afghanistan.
In the same statement, Agility said it would manage the contract, which has revenues of approximately $ 200 million, through its subsidiary, Nass.
Agility said in a statement today that terminating the contract will result in a decline in its revenues by about $ 13 million annually.
In the statement, Agility said that Nass reserves the right to take the necessary measures to object to the decision before the competent authorities – not specified in the statement -.
A quick background on the two companies
Agility: Founded in 1979 and listed on the Kuwaiti Stock Exchange in 1984, it is engaged in preparing, setting up, managing, and leasing warehouses as well as transporting and storing goods inside or outside customs areas. Agility is one of the largest logistics service providers in the world. It is present in 100 countries and has many subsidiaries operating in various fields, including: investment, aviation services, and real estate, according to its official website and its data published on the Kuwait Stock Exchange website.
Nass: A Kuwaiti company established in 2003 and operating in the field of aviation services, including: management and follow-up of luggage and goods affairs, aircraft maintenance, reception and others, according to the company file published on the official Agility website.
Nass is 95% owned by Agility, according to press reports.
(Prepared by: Muhammad Al-Hayek. Muhammad previously worked in several institutions, including the Kuwaiti newspaper Al-Rai and the Lebanese satellite channel, Future News)
(Edited by Tamim Elyan, for contact: [email protected])
Zawya Arabi covers economic news and analysis on the Middle East and the Arabian Gulf from Sunday to Thursday, and uses simple Arabic.
© ZAWYA 2020
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