LSG Sky Chefs is Prepared for the Crisis
2008: Second-best operating result in the company's history
Neu-Isenburg, Germany -- In 2008, LSG Sky Chefs was able to confirm its market position despite considerable external detrimental factors. Consolidated revenues decreased by three percent to 2,325 million EUR, mainly due to foreign exchange rates and changes in the group of consolidated companies. Higher prices for energy and food items and increased pressure on the margins impacted the operating result, which was 30 percent lower than in 2007 and amounted to 70 million EUR. This nevertheless represents the second-best operating result in the company's history.
At today’s annual press conference, CEO Walter Gehl stated: "LSG Sky Chefs is prepared for the present financial crisis with the internal programs and measures put into effect in 2007 within the company-wide 'Upgrade to Industry Leadership' initiative, which is being intensified this year. Beyond a number of short-term measures in reaction to the crisis, management is also focused on specific key areas to secure LSG Sky Chefs’ sustainable success. Among the ones with the highest priority are innovation and environmental care, a broad quality and Lean initiative and the implementation of a new operating model."
Additionally, LSG Sky Chefs will extend its comprehensive portfolio of in-flight products and services and strengthen its geographical presence in growth markets, primarily in the Middle East, Eastern Europe and Asia.
Looking into the future, Walter Gehl sees considerable challenges ahead due to the drastic shrinkage in demand for airline catering. In addition to the volume impact caused by decreasing passenger numbers, the airline catering industry is confronted with its customer’s requests for reductions in service levels and prices. "We will have to adapt our business model to the new reality by increasing our flexibility. In doing so, we place our trust in our relationships with our customers, suppliers and social partners," concluded the company’s CEO.
LSG Sky Chefs is the world’s largest provider of in-flight services. These include catering, in-flight equipment and logistics, in-flight retail as well as the management of onboard and related airport services. LSG Sky Chefs partners with more than 300 airlines worldwide and operates some 200 customer service centers in 52 countries, producing around 490 million airline meals a year. In 2011, the companies belonging to LSG Sky Chefs Group achieved consolidated revenues of € 2.3 billion.