Inflight Service acquires LSG Sky Chefs Taxfree

Gavin Lipsith

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The Swedish company buys back the pre-order production facility it set up in 1996

Swedish retailer and distributor Inflight Service has confirmed that it has acquired a 75% share in LSG Sky Chefs Taxfree, which operates the pre-order packaging facility that Inflight Service established in 2006 before selling it to LSG. The deal was approved by the Swedish anti-monopoly authorities in November 2007 and Inflight Service expects to complete the integration of the facility by April.

Inflight Service will move its existing warehouse from Helsingborg to the packing facility’s location in Tibro, where both operations will merge. LSG will retain a 25% stake in the packing facility.

Inflight Service CEO Peter Candell told RavenFox.com that the Tibro facility would look after the pre-order business of SAS, Fly Nordic TUIfly Nordic, Novair and others, although not MyTravel Airways Scandinavia or Spanair.

He said: “During our long-standing business collaboration, LSG Taxfree has become our valued partner. This acquisition reinforces [our] position within the value chain, which we believe to be a prerequisite for strengthening our competitiveness and customer service level in the future. We are very pleased about LSG Sky Chefs' continued involvement as a minority shareholder. Its in-depth expertise and wide network within the airline industry will be very valuable assets for our future development."

LSG Sky Chefs Nordic & Eastern Europe/Middle East regional COO Morten Andreasen said: "With our new partner Inflight Service we are confident that the operation will get continued long-term ownership [willingness] to invest in and develop the business.”

Inflight Service established the packing facility in 1996, and sold it to LSG in 1997 with a flight kitchen at Stockholm Arlanda airport.