Finnair & Lufthansa agree on catering services after all

Finnair (OMXH: FIA1S) and LSG Sky Chefs Group (LSG Lufthansa Service Holding AG) have signed a partnership agreement with LSG assuming operation for in-flight and catering services provided by Finnair Catering Oy. Earlier there had been an agreement for the sale of Finnair Catering but this was rejected due to an investment halt at Lufthansa. The deal that is now reached is for five-year duration and does not affect employment contracts or terms of Finnair Catering personnel. Finnair still expects sustainable savings of 9 million Euros from year three.
br> LSG will have the right to acquire Finnair Catering Oy at a predetermined price during the agreement period if it so chooses. LSG COO Silvio Canettoli foresees deepening of the cooperation in the years to come. Finnair Catering will already be renamed as LSG Sky Chefs Finland Oy and LSG takes control of management and business operations as well, suggesting the companies expects a full takeover upon the end of the investment halt.