The Finnish airline Finnair and LSG Sky Chefs, the world’s largest aviation service company, have signed a partnership agreement according to which LSG will assume full managerial and operational responsibility for the inflight and catering service provider Finnair Catering Oy. LSG Sky Chefs is a subsidiary of the German airline Lufthansa.
Based on the partnership agreement, LSG has the right to acquire Finnair Catering Oy’s share capital for a predetermined price during the agreement period.
According to Finnair, this agreement does not result in changes to the employment contracts or employment terms of Finnair Catering’s personnel.
Earlier in the current year, Finnair already agreed to sell its catering unit to LSG. However, the board of Lufthansa cancelled the letter of intent.
Finnair estimates that this partnership agreement with LSG will result in sustainable annual cost savings, and that the impact of the partnership agreement corresponds to the savings targeted with the outright sale of Finnair’s catering business, which was cancelled in May of this year.
The five-year partnership agreement became effective on August 1st 2012.