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Joined: Sun Oct 07, 2001 7:39 pm

Lufthansa Closes One-third In-flight Kitchens

Tue Nov 20, 2001 8:25 pm

Lufthansa closes one-third of its in-flight kitchens

Lufthansa Group in-flight catering unit LSG Sky Chefs is to close 50 of its in-flight kitchen facilities in the USA, one third of its worldwide total, as a result of the sharp fall in North American demand.

LSG Sky Chefs currently operates 80 kitchens in the country, located at nearly 60 airports, employing around 16,300 personnel.

The business unit had already warned that 30% of its US staff were being put on unpaid leave; these workers have now been laid off.

Lufthansa revealed last week that LSG, the world’s largest in-flight catering company, had made an operating loss of $8 million and that the company was facing a “dramatic” 50% fall in US revenues.

Source: Air Transport Intelligence news
Posts: 5880
Joined: Tue Oct 09, 2001 7:56 pm

RE: Lufthansa Closes One-third In-flight Kitchens

Tue Nov 20, 2001 9:01 pm

Yes, and it doesn't look too good in the foreseeable future, as many US carriers are obviously planning to cut inflight catering to cut costs (or they have already done so).
btw these 5,000 people are more likely to be fired in the long-term, no merry christmas I believe.
LH is trying to do something about the financials, one of their first measures was to cancel most credit lines in the US with American banks and took over SkyChefs cash management from LH headquarters by using credit lines from their German House banks.
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