LSG Lufthansa Service has paid US$75 million for a 25 per cent stake in US airline caterer Sky Chefs, making Lufthansa the biggest airline caterer in the world.
Lufthansa chairman Helmut Woelki said $50 million was being paid directly to Sky Chefs shareholders and the rest would be paid over the next two years, provided certain revenue goals were met. He did not to disclose the details of these goals.
He said the partnership with Sky Chefs, a former subsidiary of American Airlines and the second-largest US airline caterer, gave Lufthansa a larger market share of 25 in the US and 40 per cent in the world.
Lufthansa is negotiating with Asian countries including China, South Korea, Vietnam, the Philippines and India towards expanding opportunities.
Joint ventures with airlines in China to provide catering services have been set up in Beijing, Shanghai and Xian in the past decade.
Last year, Lufthansa invested $23 million installing catering facilities in Beijing, $10 million in Shanghai and $6 million in Xian, according to Gunter Beer, senior vice-president of Lufthansa Asia.
He said total turnover for the three China ventures was about HK$90 million last year.