Business and strategy

Leading role in airline catering and other services

The LSG Sky Chefs group is the global market leader in airline catering and related upstream and downstream in-flight service processes. In airline catering, which accounts for 85 per cent of the group’s total revenue, the company has a global market share of around 26 per cent. Its strong presence is reflected at a regional level above all in the highly developed markets Germany and the USA. It nevertheless continues to expand its network in the growth regions Latin America, Africa, Asia and Eastern Europe. The LSG Sky Chefs group consists of 148 companies with operations at 198 airport sites in 50 countries. The parent company for the group, LSG Lufthansa Service Holding AG, is based in Neu-Isenburg.

LSG Sky Chefs has more than 70 years of experience in airline catering, to which it continues to add every year. The marketing agreement signed in 1993 and the successive purchase of shares in Sky Chefs led to the complete takeover of the American caterer in summer 2001. In the last two decades LSG Sky Chefs has also been able to establish a solid presence in important Asian, South American, Eastern European and African markets, primarily via partnerships with local players. More recently, further corporate development has also concentrated on adding innovative equipment solutions and logistics services to the product range for airline customers and on entering neighbouring markets in which the competences acquired in its core business generate benefits for customers.

At the beginning of 2011 the previously three-member Executive Board was expanded to four members with the appointment of Erdmann Rauer as Chief Sales Officer. The company’s airline catering activities are carried out by six regional management teams, whose responsibilities are aligned with the maturity of the individual markets, their potential for business development and the need for standardisation. The regional units are supported by centralised centres of excellence for upstream and downstream products and services. Operations in adjoining markets are run by specialised teams with knowledge of their respective markets.

LSG Sky Chefs still adheres to its basic strategic orientation, defined just a few years ago, of continuing to develop its market position in all segments by means of profitable growth. In terms of cost management the focus is on permanent improvements by means of restructuring and standardising production and administrative processes, as well as by reducing staff and material costs. Growth targets are to be met by expanding the core business as well as by penetrating specific neighbouring markets.

To extend the portfolio for airline customers LSG Sky Chefs plans to establish partnerships with providers of supplementary products and services and with local partners in new locations.

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