Catering Momberger 887 - Surinam Airways

The catering arm of Surinam Airways (SLM), Surair Catering Services N.V., is operating
successfully at Paramaribo’s Zanderij Airport in Suriname. This was demonstrated not least by the
recent win of a silver award in the IATA Catering Quality Assurance programme ICQA (#886.CAT18). The
flight kitchen was HACCP-certified in 2006 and has retained and even improved food-processing quality and
safety ever since. Activities are being co-ordinated by Medina Quality Assurance Services. The operation has
a model character for the region. #887.CAT4
LSG Sky Chefs presented its annual report for the 2009 business year earlier in 2010,
confirming that consolidated revenues declined by 9.6% to EUR 2.1 billion; the operating result
was 2.9% above that of 2008 and amounted to EUR 72 million. Revenue in local currencies declined
in almost all regions except Asia/Pacific and Latin America. Average staff numbers sank by 7.3% to 28 000
employees. Staff costs, however, fell by only 5.9% to EUR 775 million, due to wage increases and positive
one-off effects from pension provisions in the U.S.A.
The group now consists of 130 companies with more than 200 customer service centres (as the
group‟s kitchens are called) in 51 countries. In 2009, these units produced about 405 million airline meals for
more than 300 airlines worldwide. Through its catering expertise, LSG Sky Chefs has developed specialized
skills in the planning, implementation and management of all processes related to in-flight services. As a
logical extension of these capabilities, LSG Sky Chefs has also begun a successful expansion into
adjacent markets, such as train, school and healthcare catering as well as retail.
The group‟s Executive Board consists of three members: Walter Gehl, Chief Executive Office, Jens
Theuerkorn, Chief Financial Officer, and Jochen Müller, Chief Operating Officer. Operations are divided into
six geographical regions: North America, Latin America, Europe, Germany, Emerging Markets, and
Asia/Pacific. There are regional management teams within each respective market.
In spite of the global financial crisis that hit the world economy in 2008, LSG Sky Chefs has been able to
maintain its premier market position with a global share of about 30%. In America and Europe, the company
estimates its market share at between 35% and 40%; in Asia, the Middle East and Africa, the majority of
local airlines still have their own catering facilities at their hubs. LSG Sky Chefs is endeavouring to build its
presence there via partnerships and management contracts.
As the business environment for LSG Sky Chefs is defined by dwindling demand and increasing
pressure, the company has adjusted its strategic outlook, which includes four major paths: 1)
strengthen the on-going improvement initiatives, focusing on the standardization and streamlining of
processes in all operating and administrative units; 2) increase sales of products and services for airlines
beyond airline catering and including consultancy, development and logistics duties for airlines, such as
design, procurement, management and stock optimization of in-flight equipment as well as comprehensive
advice in the evaluation and selection of menu concepts; 3) develop additional partnerships to enter growth
markets and enhance the product portfolio for airlines; 4) realize the potential in adjacent markets, such as
train, school and healthcare catering as well as retail. LSG Sky Chefs already scored some successes in the
year under review, such as an extension of the existing contract with Swedish Railroads by another five
years and an extension of the customer base for retail in the U.S. to include Starbucks, The Coffee Bean &
Tea Leaf, Core-Mark, the 7-Eleven chain of convenience store, plus Kroger and Trader Joe‟s grocery stores.
#887.CAT5
Gategroup reported first half 2010 improvements in revenue, operating profitability and cash
flow against a backdrop of continuing global economic uncertainty and an airline industry just
starting on the path to recovery. Airlines, Gategroup‟s main customer group, in the U.S.A., Asia and
Latin America have reported significantly improved results, but the situation in Europe remained clouded in
the first half. Continuing challenges due to the debt crisis, industry labour unrest, and the volcanic eruption
in April 2010 all combined to depress the performance of Europe‟s airlines, and Gategroup was not immune
to these effects. Due to the ash cloud alone, Gategroup experienced an operational impact on revenue of
CHF 21.0 million and CHF 8.0 million in EBITDA. “Despite the exceptional challenges, Gategroup has once
again delivered to expectations,” said Chief Executive Officer Guy Dubois. “Our business model continues to
demonstrate its resilience.”
Operating profit for the period was CHF 40.5 million, an 11.8% gain over the same 2009 period
after adjusting for foreign currency fluctuations. Profit for the period was CHF 10.3 million in 2010
versus CHF 33.2 million last year, due largely to an unrealized foreign exchange gain not repeated in 2010.
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