Finnair to sell catering operations
HELSINKI - The Associated PressFinnair plans to sell its catering operations to LSG Sky Chefs, a subsidiary of German airline Lufthansa, in a further move to cut costs.
The Finnish carrier says its sale of Finnair Catering will involve the transfer of 650 workers. The companies did not mention the cost of the deal.
The deal is subject to approval by the Lufthansa board and competition authorities in Finland.
Sale to take place by June
The airlines said yesterday that the acquisition is expected to be completed by June.
Finnair, which is struggling against budget airlines amid fierce competition, has set a target to cut annual costs by 140 million Euros ($185 million) by 2014. It said the transaction would result “in substantial permanent annual cost savings.”