Dnata aims to become the sole shareholder of the biggest inflight catering, on-board retail and logistics company in the UK by purchasing the remaining 50 per cent of its UK inflight catering joint-venture, Alpha LSG, from the LSG Group. The transaction will be subject to regulatory approval.
Alpha LSG was formed in 2012 by Dnata-owned Alpha Flight Group and LSG Sky Chefs; each holding a 50 per cent share of the business. The agreed share purchase has the full support of the LSG Group, the company said, and Alpha LSG operations will continue as usual.
Alpha LSG employs 3,500 people across 15 airport catering facilities and two central production facilities in the UK. Each year it produces 30 million meals, serving 160,000 aircraft belonging to its 80 customers.
This year, Dnata also opened new catering facilities in Houston, Boston, Los Angeles, San Francisco and Vancouver. Its catering division now numbers 10,000 staff, covering catering, inflight retail and F&B solutions.
Robin Padgett, divisional SVP, Dnata, said: “Alongside the LSG Group, we have built a high-performing business in the UK and have helped our airline customers deliver innovative, world-class solutions for their customers. We appreciate the strong partner we have had in LSG over the past seven years and are excited to build on our success and bring Alpha LSG’s employees into the Dnata family.”
Jochen Muller, COO, LSG Group, added: “We would like to thank Alpha LSG employees for their dedicated service over the years, as well as our JV partner, Dnata, for the trusting and collaborative partnership in the highly competitive UK market. This move will help to secure the continued growth of Alpha LSG and we look forward to a smooth transition while we continue our world-leading day-to-day operations.”