Gate Gourmet
Encyclopedia
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, near Zürich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
.
Gate Gourmet was founded in 1992, and is the world's largest independent airline catering, hospitality and logistics company. As a part of parent company Gate Group
Gate Group
gategroup is the parent company for eleven brands that provide services to the travel industry, including catering, hospitality, provisioning and logistics. Its head office is at Zurich Airport....
, the company has substantially expanded its products and services recently through acquisitions and strategic investments. The portfolio now includes cabin service ware (deSter); comfort/entertainment items (Harmony); packaged food components assembled in central production units (Supplair); aviation services such as cabin cleaning, aircraft washing and de-icing and passenger services (Gate Aviation [formerly Fernley/IAS - see below]); catering security (Gate Safe); business applications (eGate Solutions) and supply chain optimization (partnership with Pourshins).
As of 2004, it had 22,000 employees, had a revenue of 2.4 billion Swiss Franc
Swiss franc
The franc is the currency and legal tender of Switzerland and Liechtenstein; it is also legal tender in the Italian exclave Campione d'Italia. Although not formally legal tender in the German exclave Büsingen , it is in wide daily use there...
s, and produced 195 million flight meals per year. Some of its clients are British Airways
British Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
, LAN Airlines
LAN Airlines
LAN Airlines S.A. is an airline based in Santiago, Chile. LAN is currently positioned amongst the largest airlines in Latin America, serving Latin America, United States, the Caribbean, Oceania, and Europe. It is a member of the Oneworld airline alliance...
, Air Algérie
Air Algérie
Air Algérie SpA is the national flag carrier airline of Algeria, with its head office in the Immeuble El-Djazair in Algiers. With flights operating from Houari Boumedienne Airport, Air Algérie operates scheduled international services to 39 destinations in 28 countries in Europe, North America,...
, American Airlines
American Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
, United Airlines
United Airlines
United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees (which includes the entire holding company United Continental...
, Qantas Airways, Aerolíneas Argentinas
Aerolíneas Argentinas
Aerolíneas Argentinas , formally Aerolíneas Argentinas S.A., is Argentina's largest airline and serves as the country's flag carrier. Owned in its majority by the Argentine Government, the airline is headquartered in the Torre Bouchard, located in San Nicolás, Buenos Aires...
, Avianca
Avianca
Avianca S.A. is the flag carrier airline of Colombia since December 5, 1919 when it was initially registered under the name SCADTA. It is headquartered in Bogotá, D.C. with its hub at the El Dorado International Airport...
, Iberia Airlines
Iberia Airlines
Iberia Líneas Aéreas de España, S.A., commonly known as Iberia, is the flag carrier airline of Spain. Based in Madrid, it operates an international network of services from its main bases of Madrid-Barajas Airport and Barcelona El Prat Airport....
, airblue
Airblue
Airblue Limited is a private airline with its head office on the 12th floor of the Islamabad Stock Exchange Towers in Islamabad, Pakistan. It is Pakistan's second largest airline with over 20% share of the domestic market...
, Air France
Air France
Air France , stylised as AIRFRANCE, is the French flag carrier headquartered in Tremblay-en-France, , and is one of the world's largest airlines. It is a subsidiary of the Air France-KLM Group and a founding member of the SkyTeam global airline alliance...
, Delta Air Lines
Delta Air Lines
Delta Air Lines, Inc. is a major airline based in the United States and headquartered in Atlanta, Georgia. The airline operates an extensive domestic and international network serving all continents except Antarctica. Delta and its subsidiaries operate over 4,000 flights every day...
, Continental Airlines
Continental Airlines
Continental Airlines was a major American airline now merged with United Airlines. On May 3, 2010, Continental Airlines, Inc. and UAL, Inc. announced a merger via a stock swap, and on October 1, 2010, the merger closed and UAL changed its name to United Continental Holdings, Inc...
, Emirates Airline
Emirates Airline
Emirates is the airline based in the Emirate of Dubai part of the United Arab Emirates . Based at Dubai International Airport it is the largest airline in the Middle East, operating over 2,400 flights per week, from its hub at Terminal 3, to 111 cities in 62 countries across six continents...
, Thai Airways International
Thai Airways International
Thai Airways International Public Company Limited is the national flag carrier and largest airline of Thailand. Formed in 1988, the airline's headquarters are located in Chatuchak District, Bangkok, and operates out of Suvarnabhumi Airport. Thai is a founding member of the Star Alliance. Thai is a...
, Swiss International Air Lines
Swiss International Air Lines
Swiss International Air Lines AG is the principal airline of Switzerland operating scheduled services in Europe and to North America, South America, Africa and Asia. Its main hub is Zurich Airport...
, TAM Airlines, Airblue
Airblue
Airblue Limited is a private airline with its head office on the 12th floor of the Islamabad Stock Exchange Towers in Islamabad, Pakistan. It is Pakistan's second largest airline with over 20% share of the domestic market...
, Amtrak
Amtrak
The National Railroad Passenger Corporation, doing business as Amtrak , is a government-owned corporation that was organized on May 1, 1971, to provide intercity passenger train service in the United States. "Amtrak" is a portmanteau of the words "America" and "track". It is headquartered at Union...
and EasyJet
EasyJet
EasyJet Airline Company Limited is a British airline headquartered at London Luton Airport. It carries more passengers than any other United Kingdom-based airline, operating domestic and international scheduled services on 500 routes between 118 European, North African, and West Asian airports...
.
Gate Gourmet's roots are in Swissair
Swissair
Swissair AG was the former national airline of Switzerland.It was formed from a merger between Balair and Ad Astra Aero , in 1931...
. For a long time, Gate Gourmet was considered Swissair's "Crown Jewel". The company was worth roughly 6 billion Swiss Francs before September 11 and the bankruptcy of Swissair. The rise of oil prices damaged the airlines and many of Gate Gourmet's main customers went bankrupt or narrowly avoided bankruptcy. The weakness of the airlines affected the industries that cater to or support it. This eventually set the stage for Swissair's crown jewel requiring a restructuring effort, which soon burdened its employees. The company was sold in 2002 to Texas Pacific Group
Texas Pacific Group
TPG Capital is one of the largest private equity investment firms globally, focused on leveraged buyout, growth capital and leveraged recapitalization investments in distressed companies and turnaround situations. TPG also manages investment funds specializing in growth capital, venture capital,...
for USD $870 million.
Disputes and strike action
A major dispute, reminiscent of the Grunwick disputeGrunwick dispute
The Grunwick dispute was an industrial dispute involving trade union recognition at the Grunwick Film Processing Laboratories in Willesden, North London which led to a two-year strike between 1976–1978...
of the 1970s, ensued when it sacked 670 staff based at London Heathrow Airport
London Heathrow Airport
London Heathrow Airport or Heathrow , in the London Borough of Hillingdon, is the busiest airport in the United Kingdom and the third busiest airport in the world in terms of total passenger traffic, handling more international passengers than any other airport around the globe...
in August 2005; the staff were gathered in a car park and the announcement made by megaphone. In sympathy with the sacked workers, British Airways
British Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
staff at the airport walked out, and mass pickets of Gate Gourmet were organised by the Transport and General Workers' Union
Transport and General Workers' Union
The Transport and General Workers' Union, also known as the TGWU and the T&G, was one of the largest general trade unions in the United Kingdom and Ireland - where it was known as the Amalgamated Transport and General Workers' Union - with 900,000 members...
. Several workers alleged that Gate Gourmet had manufactured the dispute, in order to employ non-union workers at lower rates of pay
Wage
A wage is a compensation, usually financial, received by workers in exchange for their labor.Compensation in terms of wages is given to workers and compensation in terms of salary is given to employees...
and with worse conditions of employment. The company subsequently offered a redundancy package of more than twice the statutory minimum in an effort to resolve the labour difficulties, secure a new deal with British Airways, and avoid insolvency
Insolvency
Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...
. The union later negotiated the reinstatement of some of the employees, but others have continued to protest at their treatment.
On 1 March 2007, Texas Pacific Group sold its remaining shares in Gate Gourmet to Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
.
Fernley and International Aviation Services (IAS)
Along with Fernley and IAS, the group also includes Specialist Airport Services, European Airport Services and Airfield Services Ltd. The companies operate primarily in the UK, including at London's Heathrow, Gatwick Stansted and Luton airports, as well as Manchester, Dublin, Cork, Shannon, Liverpool, East Midlands, Biggin Hill and Glasgow. European Airport Services also operates in Amsterdam; Brussels, and several other regional airports in France and the Netherlands.
The acquired Fernley/IAS companies were privately held entities - mainly owned by Gary Morby - that have been in business for about 25 years. The new range of Gate Gourmet's aviation special services will be renamed Gate Aviation Services, which will be led by Morby.
Food safety
In August 2004, 45 people were sickened with ShigellaShigella
Shigella is a genus of Gram-negative, nonspore forming, non-motile, rod-shaped bacteria closely related to Escherichia coli and Salmonella. The causative agent of human shigellosis, Shigella causes disease in primates, but not in other mammals. It is only naturally found in humans and apes. During...
after eating contaminated carrots provided by Gate Gourmet. After the outbreak, the U.S. Food and Drug Administration (FDA) inspected Gate Gourmet’s Honolulu facility and determined that there were substantial problems. Gate Gourmet was warned that unless the problems were rectified, its facility would be shut down.
Rivals
- LSG Sky ChefsLSG Sky ChefsLSG Sky Chefs is the brand name of LSG Lufthansa Service Holding AG, which is the world's largest provider of airline catering and in-flight services. It is a subsidiary of Deutsche Lufthansa AG. A part of the company was formerly owned by AMR Corporation, parent company of American Airlines...
- ServairServairServair is a subsidiary of the French airline Air France, specialised in airline catering. Servair has its head office in the Continental Square complex in Roissypôle, Paris Charles de Gaulle Airport and in Tremblay-en-France....
- SATS Catering
- DnataDnataDnata is one of the largest suppliers of combined air services in the world offering ground handling, cargo, travel, and flight catering services across five continents. With a global footprint of 37 countries, Dnata employs over 20,000 employees for its operations worldwide.-History:Dnata was...
- Chelsea Food ServicesChelsea Food ServicesChelsea Food Services is an airline catering company based at Continental Center I in Downtown Houston, Texas. The company is a subsidiary of Continental Airlines, Inc., making it currently the only airline catering company to be operated in-house by a United States-based airline Chelsea Food...
- KLM Catering Services Schiphol
External links
- Official Website of International Aviation Services(IAS) and Fernley
- "Why protest is top of the menu for catering staff" – The GuardianThe GuardianThe Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...
, 27 August 2005 - Articles about striking Gate Gourmet workers at libcom.org