The ability to adapt has helped LSG Sky Chefs stay profitably ahead in the fast-changing aviation catering market. This €2.4 bn business, serving 418 m airline meals per year, continues to find plenty of opportunities globally in ist core business of on-board foodservice and logistics as well as in related segments like airport lounges, rail catering and school meals. CEO Walter Gehl reveals how crises such as September 11 taught the company to plan ahead and sharpen cost controls. He also discusses change in areas such as menu development, branding and technology.
Interview by Bruce Whitehall.
The past year has brought plenty of turbulence for the aviation industry, from fuel and airport costs to security, and the current international financial crisis looks likely to hit both business and leisure travel. How does LSG Sky Chefs, contracted to over 300 airlines worldwide, deal with the effects on demand for airline meals?
Gehl: I have been in the airline industry for nearly 28 years, and it has never been boring. Back in the early 80s, the industry was in a very weak state and in the 90s problems arose from the Gulf War and the financial crisis in Asia. By the late 1990s, the airline industry thought it was in paradise with everybody making money. But then on September 11, 2001, when I was a board member at Lufthansa Passenger Airlines, the market plummeted and left everyone, including caterers, with huge over-capacity.