Travel Retail and Duty Free Business Intelligence    Friday 25 July 2014

AIRLINES

Alpha and LSG Sky Chefs to create UK inflight joint venture

Published: 25/02/11

Source: ©The Moodie Report

By Dermot Davitt

UK. Alpha Flight and LSG have signed a Memorandum of Understanding to create a joint venture that will cover their UK operations.

The proposed scope of the joint venture, in which Alpha and LSG will be equal partners, will include all Alpha and LSG Sky Chefs catering, airline retail and ancillary services in the UK, with the exception of Alpha’s dedicated British Airways operation at London Gatwick and its Irish operations.

The joint venture will be carried out by a new company with anticipated combined revenues of £330 million. New subsidiaries of Alpha and of LSG will each hold a 50% stake.

The finalisation of the deal is subject to anti-trust approvals by the EU Commission and other regulatory bodies. The two companies have informed the Commission of their intentions. The deal also requires final approval by the boards of both companies.

Until these approvals have been signed off, the companies said they would operate their individual businesses as usual.

About Alpha Flight Group Ltd
Alpha Flight Group Ltd (Alpha) is a leading international flight caterer employing 5,800 staff worldwide. Alpha currently operates in 58 airports in 11 countries, producing over 120,000 meals per day. Alpha also operates a number of food & beverage facilities in several airports including the United Arab Emirates, Romania, Italy and Jordan. In 2009 Alpha’s turnover was £360 million.

About LSG Sky Chefs
LSG Sky Chefs is the world’s largest provider of in-flight services. These include catering, in-flight equipment and logistics, in-flight retail as well as the management of onboard service and related airport services. LSG Sky Chefs partners with more than 300 airlines worldwide and operates some 200 customer service centers in 50 countries, producing around 405 million airline meals a year. In 2009, the companies belonging to LSG Sky Chefs achieved consolidated revenues of €2.1 billion.

In the UK LSG Sky Chefs supplies more than 22.5 million meals each year to over 103,000 flights from locations that include London Heathrow, London Gatwick, London Stansted, London City, Glasgow, Luton, Manchester, Birmingham, East Midlands, Cardiff, Newcastle and Doncaster airports.