Cathay buys remainder of catering service

Cathay Pacific Airways has bought the outstanding 25 per cent stake in Cathay Pacific Catering Services (CPCS), ahead of the caterer's move to Chek Lap Kok airport in 1998.

The purchase from Hongkong and Shanghai Hotels makes CPCS a wholly owned subsidiary of the airline. Cathay spokesman Kwan Chuk-fai said the share transfer, which began on January 1 and was completed yesterday, was for an undisclosed sum.

'Cathay already owns 75 per cent . . . and it was a decision by Hong Kong Hotels,' Mr Kwan said.

'It is very natural and logical. They wanted to focus more on their own business.' The private company, formerly known as Swire Catering, was formed as a joint venture in 1967. It was renamed Cathay Pacific Catering three years ago.

Cathay also has interests in air caterers in Australia, with a shareholding of 100 per cent; Canada, with a shareholding of 60 per cent; Japan, with 28 per cent; and Vietnam, with 50 per cent.

It has just broken ground on the construction of its new $1.6 billion in-flight catering facility at Chek Lap Kok, which will have a floor area of 55,000 square metres and a capacity of up to 55,000 meals a day.