Lufthansa Sells part of LSG Catering Unit to Swiss-based gategroup
Frankfurt (dpa) - Lufthansa has concluded the sale of the European business of its LSG catering unit to Gategroup, a Swiss company based near Zurich, for an undisclosed sum, the airline announced on Monday.
Lufthansa, Europe's largest airline when all subsidiary companies are included, will retain a minority stake at locations in Frankfurt, Germany's main international hub, and Munich. This will ensure a "seamless transition" in the catering unit, Lufthansa said.
The Verdi trade union had opposed the sale, and the deal is subject to approval from the competition authorities.
The partnership would ensure "a high degree of job security," Lufthansa chief executive Carsten Spohr said, adding that the airline wanted to focus on its core business and planned to sell the remaining parts of its LSG catering next year.
The contract commits Lufthansa to sourcing its catering for long-haul routes from Frankfurt, Munich and Zurich from Gategroup over the longer term.
LSG Sky Chefs employs a staff of 35,500 worldwide. Around 7,100 work in the units being sold that turn over 1.1 billion euros (1.2 billion dollars) a year.
The sale would not have any significant effects on Lufthansa's operating or bottom-line profits for 2019 and 2020, Lufthansa said.
———
©2019 Deutsche Presse-Agentur GmbH (Hamburg, Germany)
Visit Deutsche Presse-Agentur GmbH (Hamburg, Germany) at www.dpa.de/English.82.0.html
Distributed by Tribune Content Agency, LLC.