LSG Sky Chefs

LSG Sky Chefs is the brand name of LSG Lufthansa Service Holding AG, which specializes in airline catering. It is a subsidiary of the German airline Lufthansa AG and was formerly owned by AMR Corporation parent company of American Airlines. Its primary business function is to prepare and deliver meals, beverages and snacks to aircraft for domestic and international flights.

The company's world headquarters is located in Frankfurt, Germany. Its North American headquarters is located in Irving, Texas, USA, where the company was founded in 1942. In 2004, it served more than 270 airlines and produced 362 million meals. The company operates almost 190 customer service centers in 49 countries.

The airline carriers served by LSG Sky Chefs can vary from airport to airport, but some major customers Lufthansa, American Airlines, Mexicana, Northwest Airlines, SAS, Swiss International Airlines, United Airlines, Aerosvit Airlines, and Alaska Airlines. LSG Sky Chefs reports it has about 30% of the airline catering market worldwide.

An ongoing slump in the airline industry, largely attributed to rising jet fuel costs, has created many challenges for the firm. Its global revenue has been in decline since a peak of €3.1 billion in 2002.

The company also runs more than 125 food service operations in airports around the world. In addition, the company runs non-food retail operations at several airport locations and provides traditional event planning and catering. (source: company site)

An example of a non-airline product it serves is sandwiches and salads at 7-11 convenience stores in the Orlando Market. They say Prepared by LSG Sky Chefs on the back label.

The name ‘LSG’ is from ‘Lufthansa Service GmbH’, the original name of the company that acquired the Sky Chefs brand. It is not clear whether this company name is still used or has been replaced by ‘LSG Lufthansa Service Holding AG’.

Financial Figures

Consolidated revenue:
*2000 : €1.1 billion
*2001 : €2.5 billion
*2002 : €3.1 billion
*2003 : €2.7 billion
*2004 : €2.3 billion
*2005 : €2.2 billion
*2006 : €2.3 billion (source: LSG Sky Chefs' website)
*2007 : €2.4 billion (source: dpa)

History

*1942 : American Airlines creates Sky Chefs Inc
*1966 : LSG Lufthansa Service GmbH is founded
*1985 : Onex Corporation, purchases Sky Chefs; caterer to one single airline
*1985-2001 : Under the guidance of Ewout R. Heersink, C.F.O.; Onex Corporation, Sky Chefs becomes the largest inflight catering company in the world.
*1993 : LSG acquires 25% of Sky Chefs
*1995-2001 : LSG acquires the rest of the shares in the parent company of Sky Chefs.

Main competitors

*Gate Gourmet
*Servair
*Cara Operations
* [http://www.sats.com.sg SATS Catering]
*Dnata

External links

* [http://www.lsgskychefs.com/ Official site]
* [http://www.onex.com/index.taf?pid=29&_UserReference=8820433239DBB7EC466564B9/ Ewout R. Heersink]
* [http://www.onex.com/index.taf?pid=2&_UserReference=8820433239DBB7EC466564B9/ Onex Corporation]