Lufthansa said to weigh options for catering arm Sky Chefs

Lufthansa is exploring options including a sale for LSG Sky Chefs, the catering arm that serves planes, trains and the International Space Station, according to people with knowledge of the matter. The German airline is working with advisers to review the business, according to the people, who asked not to be identified because the information is private. Other possibilities include a combination with a competitor or selling a stake to a partner, they said. Airline catering is growing more slowly than overall air traffic, as short-haul flying outpaces longer routes and budget carriers gain market share. With travellers increasingly unwilling to pay for food on shorter hops and airlines pressuring suppliers on costs, caterers have been branching out into supplying trains and supermarkets to make up for lost business. Deliberations are at an early stage, and Lufthansa isn’t running a formal sale process, according to the people. It could still opt to retain its ownership of LSG Sky Chefs, the people said. A representative for Lufthansa declined to comment. Sky Chefs was founded by American Airlines in the 1940s and merged with Lufthansa’s own LSG division in a series of transactions through 2001. The combined business grew to become the world’s largest airline caterer, before later being overtaken by Swiss rival Gategroup.<br/>