UAE/GERMANY. Etihad Aviation Group and Deutsche Lufthansa have concluded a US$100 million global catering agreement as part of a wider commercial partnership.
The four-year catering contract will see Lufthansa’s LSG Sky Chefs provide catering services to Etihad Airways in 16 cities in Europe, Asia and the Americas. Etihad said the deal made LSG its largest provider of catering services outside its Abu Dhabi home base.
The companies also outlined plans to broaden their commercial partnership in the future, with passenger services among the areas being explored (the agreement also covers aircraft maintenance, repair and overhaul).
One possible area of cooperation could be inflight duty free. As revealed by The Moodie Davitt Report last year, Etihad Airways is exploring the outsourcing of its inflight retail programme, a process that still continues, we can confirm. The airline issued a Request for Proposals with potential partners last year but no decision has been reached on the future of onboard duty free.
Lufthansa operates its inflight duty free programme in-house.
Etihad Aviation Group President and Chief Executive Officer James Hogan said: “Partnerships are at the heart of our strategy and remain fundamental for us to compete effectively and efficiently in a complex and competitive global market.
“Our collaboration with one of the aviation industry’s most established and recognised brands is undoubtedly the most significant non-equity partnership with an airline we have ever announced.
“This partnership is the platform for a much wider strategic collaboration between our two organisations. It demonstrates the commitment of the Etihad Aviation Group Board and Abu Dhabi to our European growth strategy.”
Lufthansa Group Chairman and Chief Executive Officer Carsten Spohr commented: “We welcome the opportunity to strengthen our cooperation with the Etihad Aviation Group. Together we can create added value for our customers and shareholders. Partnering with the Etihad Aviation Group fits perfectly the Lufthansa Group’s global strategy for our passenger airlines and service companies.”
