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Gate Gourmet to buy five airline catering units in Germany
Friday, May 09, 2008

Gate Gourmet has agreed to purchase airline catering units in five cities from Air Berlin and SCK Sky Catering Kitchen GmbH. In addition, Air Berlin, Germany’s second largest airline and the third largest carrier in the European leisure market, has agreed to a new long-term catering contract with Gate Gourmet in Germany and the rest of Europe.

The flight kitchens included in the transaction are located at Dusseldorf, Cologne/Bonn, Munster/Osnabruck, Leipzig/Halle and Paderborn. The five facilities serve approximately 18,000 flights total a year, with Dusseldorf the largest single unit at approximately 10,000 flights annually.

The five-city operation, which is formally named SCK DUS GmbH& Co KG Dusseldorf, is a joint venture between Air Berlin and SCK Sky Catering Kitchen GmbH Bordverpflegung & Co Service KG, Ulm. SCK Sky Catering Kitchen GmbH Bordverpflegung & Co Service KG, Ulm continues to operate its facilities in several other German cities.

“We are very pleased to include these five facilities into the Gate Gourmet portfolio. They are an important strategic addition to our network, and we see them as a key acquisition in our long-term strategy to secure Gate Gourmet’s position in the German airline catering market,” said Guy Dubois, President and CEO Designate of gategroup, the umbrella brand representing Gate Gourmet and 10 other brands.

“The addition of Air Berlin’s catering business at its busy Dusseldorf hub and the new multi-year contract with the airline elsewhere significantly strengthens our relationship with this fast-growing and innovative European carrier,” said Philippe Op de Beeck, gategroup Senior Vice President & President of the Central Europe, Middle East & Africa region.

“With Gate Gourmet, Air Berlin found a global partner that perfectly suits our worldwide flight network. The optimized purchasing will grant us synergetic effects,“ said Thomas Ney, Senior Executive Inflight Service Air Berlin Group.

The transaction is subject to review by competition authorities in Germany. Terms of the agreement are confidential.

Vicky Karantzavelou - Friday, May 09, 2008
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The imminent privatization of Olympic Airlines is expected to change the fate of this debt-laden airline. What do you think the new owner should do in regard to the brand name of the Greek national flag carrier?.

Keep “Olympic Airlines” as the name of the company as it remains a strong brand.

The company should keep “Olympic” as an element of its name but refresh the brand (e.g. “New Olympic Airlines”).

The airline should drop “Olympic” from its name. This brand has lost its value and isn’t relevant to the market anymore.

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