Finnair’s catering operations not to be sold to LSG Sky Chefs

Finnair’s catering operations will not be sold to LSG Sky Chefs, as previously announced. The companies signed a Memorandum of Understanding about the deal March 12, 2012. The acquisition was subject to the approval of Lufthansa Board of Directors and it was expected to be closed by the end of first half of 2012. The Lufthansa Board decided not to approve LSG Sky Chef’s acquisition plans due to an investment freeze at Lufthansa. “We will now focus on improving the productivity of the Finnair catering businesses,” said Anssi Komulainen, Senior Vice President of Customer Service at Finnair. “We believe there is a lot we can do to achieve better profitability and improve the customer experience. At the same time, we will continue to evaluate other arrangement alternatives.”