LSG Sky Chefs

Overview:

This company’s high-flying cuisine keeps airline passengers full and happy. LSG Lufthansa Service Holding (better known as LSG Sky Chefs) is a top operator of in-flight foodservices, along with rival Gate Gourmet. It provides meals to about 300 airlines, including Qantas and Virgin Atlantic, as well as parent Lufthansa, through about 200 service centers in almost 50 countries. With almost 125 subsidiaries, the company also runs restaurants and foodservice operations at airports throughout Germany. Altogether, LSG Sky Chefs serves more than 425 million meals a year. Lufthansa formed LSG in 1966 and acquired US-based Sky Chefs (founded in 1942 as part of American Airlines) in 2001.

LSG Sky Chefs has had to roll with the punches hitting the airline industry in recent years. With fewer airline passengers, the demand for catering services has been reduced. So the company has built up its consulting practice for on-board services, such as logistics, supply chain management, and IT support for in-flight services and equipment. LSG is hoping these additional service offerings will lead to greater returns from existing customers.

To stay aloft during tough economic times, LSG Sky Chefs in 2011 reorganized its airline catering business in Germany, the firm’s largest single market. As part of the reorganization plan, LSG adopted a management company structure and will oversee a dozen individually operated entities. LSG believes that the restructuring will foster a more entrepreneurial spirit at the individually operated businesses, thereby improving competitiveness and growth opportunities.