Lufthansa Pulls Out Of Finnair Catering Deal

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Published: May 31, 2012

Lufthansa said it has pulled out of a deal to buy Finnair’s catering business, because the German airline’s board did not approve the transaction due to a spending freeze.

Lufthansa’s catering unit LSG Sky Chefs had planned to buy Finnair’s catering business in a deal signed in March, in a drive to cut costs and respond to tough competition from discount airlines by consolidating services.

“This is naturally a disappointment both to LSG Sky Chefs and to us and we had worked hard to make the cooperation work for the benefit of both parties,” Finnair official Anssi Komulainen said in a statement, adding that the company would now consider alternatives.

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