The airline catering facility will be co-branded. Given it now has a minority shareholding, gategroup will no longer consolidate the entity.
ZURICH – gategroup and China Aviation Investment Co., Ltd. (CAIC), an affiliate of the Air China Group, have optimized the shareholding structure of the joint venture operation Shanghai Pudong International Airport Gate Gourmet Air Catering Co., Ltd., thereby executing a key element of the Letter of Intent signed by the two parties in 2012. Through this transaction, gategroup has reduced its participating interest from 80% to 29%, with CAIC holding 51% and Shanghai Airport Group Co., Ltd. 20%. The airline catering facility will be co-branded. Given it now has a minority shareholding, gategroup will no longer consolidate the entity.
gategroup CEO Andrew Gibson said, “The closer partnership with CAIC is one important step forward in our business development strategy in China. We expect that current revenues of around CHF 21 million at the existing operation at Pudong Airport will continue to grow substantially over the next three years. In addition, the joint venture will also integrate the activities of the Shanghai Airport International Catering Co., Ltd., establishing a presence in both major airports serving Shanghai (Pudong and Hongqiao).”
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