LSG Group

{{Short description|Aviation Service Company}}

{{infobox company

| name = LSG Group

| logo = LSG group logo.svg

| image =

| image_caption =

| trade_name = LSG Group

| type = Aktiengesellschaft

| industry =

| predecessors =

| founded = 1995

| hq_location_city = Neu-Isenburg

| hq_location_country = Germany

| area_served = Worldwide

| key_people = {{Unbulleted list|Erdmann Rauer (CEO)|Wilken Bormann (CFO)}}

| brands = LSG Sky Chefs
Retail inMotion

| services =

| revenue = 3.400 billion (2019)

| operating_income =

| net_income =

| assets =

| num_employees = 35,679 (2019)

| parent = Aurelius Group

| divisions =

| subsid =

| website = {{URL|lsg-group.com}}

| footnotes =

}}

LSG Group is an aviation services company that manages multiple brands, including LSG Sky Chefs and Retail inMotion. The company's world headquarters is located in Neu-Isenburg, near Frankfurt, Germany. Its North American headquarters is located in Irving, Texas, United States. It is a subsidiary of the Aurelius Group after being sold by former owner Lufthansa in 2023.

History

{{prose|date=November 2024}}

  • 1942 — American Airlines creates Sky Chefs, Inc. as a wholly owned subsidiary.{{cite encyclopedia |title=Chef Solutions, Inc. |via=Encyclopedia.com |encyclopedia=International Directory of Company Histories |url=https://www.encyclopedia.com/books/politics-and-business-magazines/chef-solutions-inc }}
  • 1966 — Deutsche Lufthansa creates LSG Lufthansa Service GmbH as a wholly owned subsidiary.{{cite book |title=Flying the Flag: European Commercial Air Transport since 1945 |editor1-first=Hans-Liudger |editor1-last=Dienel |editor2-first=Peter |editor2-last=Lyth |page=111 |year=1999 |location=Basingstoke |publisher=Palgrave Macmillan |isbn=9781349269518 |url=https://books.google.com/books?id=vbSvCwAAQBAJ&pg=PA111 }}{{cite book |title=Lexikon der Luftfahrt |language=de |author1-first=Niels |author1-last=Klußmann |author2-first=Arnim |author2-last=Malik |page=330 |year=2004 |publisher=Springer |isbn=9783662083697 |url=https://books.google.com/books?id=eycmBgAAQBAJ&pg=PA330 }}{{cite book |title=Flight Catering |editor1-first=Peter |editor1-last=Jones |pages=30–31 |year=2004 |location=Oxford |publisher=Elsevier |isbn=9781136402906 |url=https://books.google.com/books?id=f14Lh9jTPx0C&pg=PA30 }}
  • 1979 — Sky Chefs moves its headquarters from New York to Arlington, TX, in conjunction with American Airlines’ move to Fort Worth.{{cite magazine |title=Sky Chefs |magazine=Airline, Ship & Catering Onboard Services Magazine |year=1992 |volume=24 |page=31 }}
  • 1982 — Sky Chefs becomes a subsidiary of American Airlines' newly formed holding company AMR Corporation.
  • 1986 — Toronto-based Onex Capital Corporation acquires Sky Chefs from AMR for $170 million (C$99 million).{{cite news |date=January 15, 1986 |title=Sky Chefs' Sale |url=https://www.nytimes.com/1986/01/15/business/sky-chefs-sale.html |work=The New York Times |agency=Reuters }} Sky Chefs becomes a subsidiary of Onex Food Services Inc.
  • 1993 — LSG acquires 25 percent of Sky Chefs from Onex for $75 million.{{cite news |date=September 25, 1993 |title=COMPANY NEWS; LUFTHANSA UNIT GETS STAKE IN SKY CHEFS |url=https://www.nytimes.com/1993/09/25/business/company-news-lufthansa-unit-gets-stake-in-sky-chefs.html |work=The New York Times |agency=Reuters }} LSG and Onex Food enter a joint marketing agreement to operate under the common brand "LSG Lufthansa Service/Sky Chefs."{{cite news |date=May 11, 1995 |title=Onex to take over Caterair operations |url=https://www.washingtonpost.com/archive/business/1995/05/11/onex-to-take-over-caterair-operations/6c1a93fa-3a36-4521-afff-390907d3b5b7/ |newspaper=The Washington Post |author-first=Anthony |author-last=Faiola}}
  • 1995
  • Onex acquires Caterair International Corp. for $516 million.{{cite news |date=May 11, 1995 |title=COMPANY NEWS; A $516 MILLION DEAL IN AIRLINE CATERING

|url=https://www.nytimes.com/1995/05/11/business/company-news-a-516-million-deal-in-airline-catering.html |work=The New York Times |agency=Reuters}}

  • Lufthansa creates LSG Lufthansa Service Holding AG, a wholly owned subsidiary and holding company for all catering activities.
  • 1998 — Onex acquires the airline catering operations of New York-based Ogden Corporation for $84.8 million.{{cite news |date=May 5, 1998 |title=COMPANY NEWS; OGDEN TO SELL AIRLINE-CATERING OPERATIONS TO ONEX

|url=https://www.nytimes.com/1998/05/05/business/company-news-ogden-to-sell-airline-catering-operations-to-onex.html |work=The New York Times |agency=Bloomberg News}}

  • 1999 — LSG acquires an additional 23 percent of Sky Chefs.
  • 2001 — LSG acquires Onex Corporation's remaining 47 percent stake in Sky Chefs for $827 million (C$1.3 billion).{{cite news |date=March 30, 2001 |title=COMPANY NEWS; LUFTHANSA TO ACQUIRE A STAKE IN SKY CHEFS CATERING

|url=https://www.nytimes.com/2001/03/30/business/company-news-lufthansa-to-acquire-a-stake-in-sky-chefs-catering.html |work=The New York Times |agency=Bloomberg News}}{{cite news |title=Lufthansa takes over Sky Chefs |work=The Caterer |date=June 14, 2001 |url=https://www.thecaterer.com/archive/lufthansa-takes-over-sky-chefs}}

  • 2016 — LSG acquires Retail inMotion.{{cite web |title=LSG Group closes out 2016 with revenue and EBIT increase |author-first=Rick |author-last=Lundstrom |url=http://www.pax-intl.com/industry-news/catering-service/2017/03/23/lsg-group-closes-out-2016-with-revenue-and-ebit-increase |date=March 23, 2017 |publisher=PAX International}}
  • 2018 — LSG launches Evertaste brand for packaged products.{{cite web |title=LSG Group Invests in Packaged-Products Market With New Brand Evertaste |author-first=Kristina |author-last=Velan |url=https://apex.aero/2018/04/10/lsg-group-packaged-products-brand-evertaste |date=April 10, 2018 |publisher=APEX}}
  • 2018 - LSG Sky Chefs co-founded the Airline Catering Association, which is based in Brussels, Belgium.{{cite web |author=Bloomberg|title= Airline-Caterer gründen Interessensvertretung|url=http://www.austrianaviation.net/detail/airline-caterer-gruenden-interessensvertretung/|access-date=2018-02-13}}
  • 2020 - Gategroup Holding AG acquired the European business of LSG Group.{{cite news |date=December 9, 2019 |title=Lufthansa selling European catering business to gategroup

|url=https://apnews.com/95c5da55db32695b025004f39496cefc |work=AP News}}

  • 2023 - The remaining international business of the LSG Group has been sold by Lufthansa to Aurelius Group.[https://www.aurelius-group.com/aurelius-acquires-global-market-leader-lsg-group-from-lufthansa aurelius-group.com - AURELIUS acquires global market leader LSG Group from Lufthansa] 5 April 2023

Corporate affairs

Under the LSG Sky Chefs brand, the company is a provider of in-flight catering services for the airline industry. In addition the company also provides extended services on other aspects of in-flight service including in-flight logistics, in-flight management, onboard retail management, and the management of airport lounges. In addition to catering to airplanes, LSG has expanded operations to include commercial trains. LSG Sky Chefs partners with more than 300 airlines worldwide across 214 airports and operates almost 210 customer service centers in 51 countries, producing around 591 million meals a year.{{cite web|title=LSG Group by the numbers - Facts and Figures|url=http://www.lsgskychefs.com/us/facts-figures/|access-date=2018-03-30|publisher=Lsgskychefs.com}}

The airline carriers served by LSG Sky Chefs can vary from airport to airport, but some major customers are Lufthansa, Air New Zealand, American Airlines, Delta Air Lines, Asiana Airlines, Spirit Airlines, Swiss International Air Lines, United Airlines, Alaska Airlines, Korean Air, Finnair, airBaltic and Emirates.{{cn|date=November 2024}} LSG Group also caters the ESA missions to the International Space Station with bonus food for the German astronauts.{{Cite web|url=https://www.lsg-group.com/news/press-release/lsg-group-sends-venison-ragout-to-the-iss/|title=Space Food: LSG Group sends autoclaved venison ragout to the ISS|date=28 May 2024 }}

Criticism

In 2019, the AFL-CIO study found evidence of applying anti-union strategies and tactics despite LSG having publicly committed themselves to international human rights and labour standards, including organizing and collective bargaining rights. {{Cite web |date=October 2019 |title=European companies respond to AFL-CIO report alleging use of anti-union tactics in American South |url=https://www.business-humanrights.org/en/latest-news/european-companies-respond-to-afl-cio-report-alleging-use-of-anti-union-tactics-in-american-south/ |website=Business & Human Rights Resource Centre}} The 11,000 union members working for LSG (UNITE HERE (“UH”) is the labour union which represents LSG Sky Chefs) voted in June 2019 to authorize a strike in Aug. 13 as the union stated that wages at Sky Chefs were as low as $9.85 an hour and that more than half the workers make less than $11.35 an hour and couldn't afford health benefits. {{Cite web |last=Arnold |first=Kyle |date=2 August 2019 |title=100 union catering workers are planning to get arrested while protesting American Airlines |url=https://www.dallasnews.com/business/airlines/2019/08/02/100-union-catering-workers-are-planning-to-get-arrested-while-protesting-american-airlines/ |access-date=2 August 2019 |website=The Dallas Morning News}} LSG Sky Chefs, however, strongly disagrees with the study’s argument that European companies seek to locate in the South to avoid unions. According to LSG's response to the study, the Company has, and continues to fully support workers’ rights and freedom of association.{{Cite web |date=29 October 2019 |title=Response by LSG Sky Chefs |url=https://www.business-humanrights.org/en/latest-news/response-by-lsg-sky-chefs/ |website=Business & Human Rights Resource Centre}}

References

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