August 1, 2012
Finnair and LSG Sky Chefs Group sign partnership agreement
Finnair and LSG Sky Chefs Group (LSG) have signed a partnership agreement according to which LSG will assume full managerial and operational responsibility for the inflight and catering service provider Finnair Catering Oy. The partnership aims at further improving the quality and cost effectiveness of catering services for Finnair’s customers. The five year partnership agreement will become effective August 1st, 2012. Despite the transfer in control over its operations, this agreement does not result in changes to the employment contracts or employment terms of Finnair Catering’s personnel. Finnair estimates that this agreement will result in sustainable annual savings of approximately €9m starting from the third year of the cooperation. In addition, Finnair will book five annual payments of €3m each, totalling €15m, in its 2012 result in line with IFRS. According to the partnership agreement, LSG has the right to acquire Finnair Catering Oy’s share capital for a predetermined price during the agreement period.