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gategroup further optimizes its contract portfolio

gategroup will focus on last mile services and continue delivering amenity kits, equipment and security services to Norwegian. The two companies worked very closely together to launch Norwegian’s long-haul product.

ZURICH – Norwegian Air Shuttle ASA and gategroup have agreed to extend their partnership for Norwegian’s long-haul services for three years until April 2017. gategroup will focus on last mile services and continue delivering amenity kits, equipment and security services to Norwegian. The two companies worked very closely together to launch Norwegian’s long-haul product.

Furthermore, Gate Gourmet will continue to provide last mile services to Norwegian’s short-haul network. In April 2014, Gate Retail Onboard (GRO) will be terminating retail services for Norwegian’s short-haul flights as part of the Group’s ongoing restructuring efforts in Europe. GRO will no longer be the “merchant of record” for Norwegian and consequently this will lead to a consolidated annual decrease in revenue of approximately CHF 50 million (CHF 34 million in 2014) at the Group level, with an expected neutral impact to the EBITDA.

Also, gategroup is pleased to announce that it has renewed and expanded business with long-time customer Delta Air Lines. The award includes a five-year extension of all catering and provisioning services provided by Gate Gourmet that was due to expire in 2013. Gate Gourmet also has expanded its relationship with Delta at three new locations – Dusseldorf, Germany; Manchester, England; and Santiago, Chile. Additionally, Gate Aviation has been awarded combined cabin cleaning and commissary services at certain U.S. locations.

“We are delighted to continue our long-standing relationship with Delta and working in collaboration to further enhance the total inflight product for our valued customer,” said Doug Goeke, Senior Vice President and President, North America Airline Solutions.

The total value of the award is approximately CHF 125 million per year and remains subject to finalizing the extension and new business agreements consistent with the award.

Theodore Koumelis
Co-Founder & Managing Director - Travel Media Applications | Website

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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