Malaysia Airports Holdings Bhd may suffer LCCT delay, gategroup announces North American contracts

In Southeast Asia yesterday, shares in Malaysia Airports Holdings Bhd (MAHB) gained 0.4%, despite a possible delay on its proposed low-cost carrier terminal (LCCT) at Kuala Lumpur. The terminal is expected to be completed by late 2011 or early 2012, instead of the previously scheduled Sep-2011.

Managing Director, Tan Sri Bashir Ahmad stated so far MAHB has awarded two contracts for earth works to WCT Bhd and Gadang Holdings Bhd, but major contracts had not been awarded yet. Further details on the bidders were not provided.

Earlier this week, Copenhagen Airports (CPH) held the topping-out ceremony for CPH Swift, its new low-cost pier, on 25-Mar-2010. Scheduled to commence operation in six months, the new low-cost concept will “help to attract more passengers to Copenhagen, for the benefit of tourism, business and employment in the city and in the entire region”, according to the airport company. Shares in Copenhagen declined 5.2% yesterday.

gategroup announces EUR141 million in North American contracts

Meanwhile in Europe, shares in Switzerland’s gategroup dipped 0.8% yesterday, despite an announcement that its brands in North America have awarded airline contracts totaling nearly CHF200 million (EUR141 million) over the three to five-year terms of the agreements, equally spread across new and existing business. The agreements cover a mix of US and international carriers and include gategroup brands Gate Gourmet, Pourshins, Supplair, deSter, eGate Solutions and Gate Safe. Details include:

  • Virgin Atlantic Airways: Awarded the in-flight catering and provisioning business for all ten of its US gateways to Gate Gourmet, with Pourshins and Supplair to handle sourcing, distribution and warehousing of unique food and beverage service concepts. The three-year agreement, effective May-2010, covers Boston, Chicago, Las Vegas, Los Angeles, Miami, Newark, New York JFK, Orlando, San Francisco and Washington-Dulles;
  • American Airlines: Gate Gourmet will continue to provide catering and provisioning services to American at Los Angeles. Pourshins also continues to provide supply chain solutions;
  • Swiss International Airlines: Gate Gourmet has been awarded the airline catering services business for the carrier's new route to San Francisco, and for new and existing business in Boston and Chicago O’Hare, respectively;
  • Kuwait Airways: Gate Gourmet recently commenced catering Kuwait Airways at New York JFK International Airport;
  • Aer Lingus: Gate Gourmet recently launched catering for Aer Lingus at Washington Dulles and Chicago:
  • JetBlue: eGate Solutions' TS4 onboard retail technology solution is being implemented systemwide by JetBlue;
  • Cargo: Gate Safe's expansion into the US cargo screening market continues with several new customers, including Cargo Airport Services USA.

Selected airports daily share price movements (% change): 31-Mar-2010