LSG Sky Chefs
Encyclopedia
LSG Sky Chefs is the brand name of LSG Lufthansa Service Holding AG, which is the world's largest provider of airline catering (although Gate Gourmet
claims the title of world's largest "independent" provider ) 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
. Its primary business function is to prepare and deliver meals, beverages and snacks to aircraft for domestic and international flights. In addition the company also provides extended services on all other aspects of in-flight service, including the design and sourcing of in-flight equipment, in-flight logistics, in-flight management, onboard retail management and the management of airport lounge
s to name but a few.
The company's world headquarters is located in Neu-Isenburg
near Frankfurt
, Germany
. Its North American headquarters is located in Irving, Texas
, USA, where a part of the company was founded in 1942.
LSG Sky Chefs partners with more than 300 airlines worldwide and operates almost 200 customer service centers in 50 countries, producing around 460 million meals a year.
The airline carriers served by LSG Sky Chefs can vary from airport to airport, but some major customers are Lufthansa
, American Airlines
, Delta Air Lines
, Asiana Airlines
, Swiss International Airlines, United Airlines
, Alaska Airlines
, Korean Air
, and Aeroflot
. LSG Sky Chefs reports it has about 30% of the airline catering market worldwide.
An ongoing slump in the airline industry, largely attributed to rising jet fuel costs, has created many challenges for the firm. Its global revenue has been in decline since a peak of €3.1 billion in 2002.
The company also operates three deep-frozen manufacturing/distribution facilities supplying to different regions of the world in:
with each location employing over 100 staff with capacities to manufacture 25 million meals each for its customers.
In addition, the company runs non-food retail operations at several airport locations and provides traditional event planning and catering.
(source: company site)
An example of a non-airline product it produces is sandwiches and salads at 7-11 convenience stores in North America, supplied by its Pittsburgh as well as other facilities in the US. They say ‘Prepared by LSG Sky Chefs’ on the back label.
The name ‘LSG’ derives from ‘Lufthansa Service GmbH’, the original name of the company that acquired the Sky Chefs brand.
The company plans to merge its operations in the UK with the more professional Alpha Airports Group.
Gate Gourmet
Gate Gourmet is an airline catering firm with headquarters on the grounds of Zürich Airport, Switzerland, near Zürich.Gate Gourmet was founded in 1992, and is the world's largest independent airline catering, hospitality and logistics company...
claims the title of world's largest "independent" provider ) and in-flight services. It is a subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
of Deutsche Lufthansa AG
Lufthansa
Deutsche Lufthansa AG is the flag carrier of Germany and the largest airline in Europe in terms of overall passengers carried. The name of the company is derived from Luft , and Hansa .The airline is the world's fourth-largest airline in terms of overall passengers carried, operating...
. A part of the company was formerly owned by AMR Corporation, parent company
Parent company
A parent company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors; the second company being deemed as a subsidiary of the parent company...
of 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...
. Its primary business function is to prepare and deliver meals, beverages and snacks to aircraft for domestic and international flights. In addition the company also provides extended services on all other aspects of in-flight service, including the design and sourcing of in-flight equipment, in-flight logistics, in-flight management, onboard retail management and the management of airport lounge
Airport lounge
An airport lounge is a lounge owned by a particular airline . Many offer private meeting rooms, phone, fax, wireless and Internet access and other business services, along with provisions to enhance comfort such as free drinks and snacks...
s to name but a few.
The company's world headquarters is located in Neu-Isenburg
Neu-Isenburg
The “Huguenot Town” of Neu-Isenburg with its outlying centres of Gravenbruch and Zeppelinheim is found in the Offenbach district in the Regierungsbezirk of Darmstadt in Hesse, Germany, right near Frankfurt am Main...
near Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
. Its North American headquarters is located in Irving, Texas
Irving, Texas
Irving is a city located in the U.S. state of Texas within Dallas County. According to the 2010 U.S. Census, the city population was 216,290. Irving is within the Dallas–Plano–Irving metropolitan division of the Dallas–Fort Worth–Arlington metropolitan area, designated...
, USA, where a part of the company was founded in 1942.
LSG Sky Chefs partners with more than 300 airlines worldwide and operates almost 200 customer service centers in 50 countries, producing around 460 million meals a year.
The airline carriers served by LSG Sky Chefs can vary from airport to airport, but some major customers are Lufthansa
Lufthansa
Deutsche Lufthansa AG is the flag carrier of Germany and the largest airline in Europe in terms of overall passengers carried. The name of the company is derived from Luft , and Hansa .The airline is the world's fourth-largest airline in terms of overall passengers carried, operating...
, 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...
, 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...
, Asiana Airlines
Asiana Airlines
Asiana Airlines Inc. is one of South Korea's two major airlines, along with Korean Air. Asiana has its headquarters in Asiana Town in Osoe-dong, Gangseo-gu, Seoul...
, Swiss International Airlines, 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...
, Alaska Airlines
Alaska Airlines
Alaska Airlines is an airline based in the Seattle suburb of SeaTac, Washington in the United States. The airline originated in 1932 as McGee Airways. After many mergers with and acquisitions of other airlines, including Star Air Service, it became known as Alaska Airlines in 1944...
, Korean Air
Korean Air
Korean Air Lines Co., Ltd. , operating as Korean Air, is both the flag carrier and the largest airline of South Korea, with global headquarters located in Seoul, South Korea. Korean Air's international passenger division and related subsidiary cargo division together serve 130 cities in 45...
, and Aeroflot
Aeroflot
OJSC AeroflotRussian Airlines , commonly known as Aeroflot , is the flag carrier and largest airline of the Russian Federation, based on passengers carried per year...
. LSG Sky Chefs reports it has about 30% of the airline catering market worldwide.
An ongoing slump in the airline industry, largely attributed to rising jet fuel costs, has created many challenges for the firm. Its global revenue has been in decline since a peak of €3.1 billion in 2002.
The company also operates three deep-frozen manufacturing/distribution facilities supplying to different regions of the world in:
- AlzeyAlzeyAlzey is a Verband-free town – one belonging to no Verbandsgemeinde – in the Alzey-Worms district in Rhineland-Palatinate, Germany. It is the fourth-largest town in Rhenish Hesse, after Mainz, Worms, and Bingen....
(Europe, Africa, Middle East), - PittsburghPittsburgh International AirportPittsburgh International Airport , formerly Greater Pittsburgh Airport, Greater Pittsburgh International Airport and commonly referred to as Pittsburgh International, is a joint civil–military international airport located in the Pittsburgh suburb of Findlay Township, approximately west of...
(North America, Caribbean, South America) - QingdaoQingdao' also known in the West by its postal map spelling Tsingtao, is a major city with a population of over 8.715 million in eastern Shandong province, Eastern China. Its built up area, made of 7 urban districts plus Jimo city, is home to about 4,346,000 inhabitants in 2010.It borders Yantai to the...
(Asia, Australia)
with each location employing over 100 staff with capacities to manufacture 25 million meals each for its customers.
In addition, the company runs non-food retail operations at several airport locations and provides traditional event planning and catering.
(source: company site)
An example of a non-airline product it produces is sandwiches and salads at 7-11 convenience stores in North America, supplied by its Pittsburgh as well as other facilities in the US. They say ‘Prepared by LSG Sky Chefs’ on the back label.
The name ‘LSG’ derives from ‘Lufthansa Service GmbH’, the original name of the company that acquired the Sky Chefs brand.
The company plans to merge its operations in the UK with the more professional Alpha Airports Group.
Financial figures
Consolidated revenue:- 2000 : €1.1 billion
- 2001 : €2.5 billion
- 2002 : €3.1 billion
- 2003 : €2.7 billion
- 2004 : €2.3 billion
- 2005 : €2.2 billion
- 2006 : €2.3 billion (source: LSG Sky Chefs' website)
- 2007 : €2.4 billion (source: dpa)
- 2008 : €2.3 billion
- 2009 : €2.1 billion
- 2010 : €2.2 billion
History
- 1942 : American AirlinesAmerican AirlinesAmerican 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...
creates Sky Chefs Inc. - 1966 : LSG Lufthansa Service GmbH is founded
- 1985 : Onex Corporation, purchases Sky Chefs; caterer to one single airline
- 1985-2001 : Under the guidance of Ewout R. Heersink, C.F.O.; Onex Corporation, Sky Chefs becomes the largest inflight catering company in the world.
- 1993 : LSG acquires 25% of Sky Chefs
- 1995-2001 : LSG acquires the rest of the shares in the parent company of Sky Chefs.
Main competitors
- Gate GourmetGate GourmetGate Gourmet is an airline catering firm with headquarters on the grounds of Zürich Airport, Switzerland, near Zürich.Gate Gourmet was founded in 1992, and is the world's largest independent airline catering, hospitality and logistics company...
- 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....
- Flying Food Group
- Cara OperationsCara OperationsCara Operations Limited is a Canadian company that provides catering services to airlines and operates several restaurant chains including: Harvey's, Swiss Chalet, Kelsey's, Milestones and Montana's. Its headquarters are in Vaughan, Ontario. It was previously headquartered in Mississauga, Ontario...
- 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...