LSG Sky Chefs Signs Joint Venture Agreement For New Customer Service Center In Sanya, China

Kriftel/Germany – LSG Sky Chefs, the world’s largest provider of quality in-flight catering, today announced that LSG Asia GmbH has signed a 30-year contract for a new customer service center in Sanya, Hainan, China, with joint venture partners Sanya Phoenix International Airport Co. Ltd. and Hainan Airlines Group Co. Ltd. This represents the company’s seventh joint venture in mainland China.

“China is our major market for expansion and we will keep on looking for new business opportunities, to be an active player in this most fast-growing & attractive market.” said HK Cheung, Executive Vice President, Asia Pacific Region.

Sanya, located in the southern region of China, is an important economic, cultural and foreign trade port. Since opening in 1994, passenger traffic at Sanya Phoenix International Airport has grown about 15% annually.

LSG Sky Chefs holds a 45% stake in the new unit, which will be open by the end of 2003. Under the contract, more than 2000 meals will be prepared daily by about 50 employees. Besides Hainan Airlines, other Chinese Airlines like China Northern Sanya Airlines, China Southern Airlines, China Eastern Airlines, Air China, Korean Air and Dragonair also operate to Sanya Phoenix International Airport.

Hainan Airlines Group Co. Ltd. is the fourth-largest airline group in China’s aviation market with more than 300 routes connecting about 80 destinations.

LSG Sky Chefs is the world’s largest inflight service provider, including catering, procurement, equipment management and Total Inflight Service Management. LSG Sky Chefs caters 260 airlines from more than 200 customer service centers in 45 countries. In 2001, the companies belonging to LSG Sky Chefs Group achieved pro rated sales of EUR 3.1 billion.