gategroup has signed a four-year agreement for its core Gate Gourmet brand with Spanish carrier, Iberia, in a contract valued in excess of CHF400 million.
The agreement includes catering and provisioning services at Iberia's main hubs at Madrid and Barcelona, as well as at more than 20 other airports in Europe, the US and Latin America. The agreement, which will take effect in May-2011, also covers ancillary services, including onboard retailing of food and beverages for short and medium-haul flights and supply of products to Iberia's VIP lounge in Madrid. Under the new agreement, Gate Gourmet will expand its role as Iberia's global account manager to include menu planning and design as well as operations management.
"We are extremely pleased to continue and expand our long-standing relationship with Iberia, a leading airline in the forefront of airline consolidation," said gategroup Chief Executive Guy Dubois. "Gate Gourmet is very proud to be a strategic provider for merger partners Iberia and British Airways in their respective hubs of Madrid and London Heathrow."
Iberia and British Airways completed their merger last week. The new parent company, International Consolidated Airlines Group, will make its stock market debut today.
Shares of Zurich-based gategroup are traded on the SIX Swiss Exchange. The stock gained 1.7% on Friday.
Selected airport suppliers daily share price movements (% change): 21-Jan-2011
Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.