Airline catering and retail specialist LSG Group has entered into a “strategic partnership” with onboard solutions provider Kaelis, building on a relationship initially formed in 2022.
The tie-up will enable both to expand and diversity their portfolios, offer high-quality, innovative inflight products, develop passenger-centric solutions, and develop sustainable solutions, according to a statement.
Supply chain networks will be optimised to enhance efficiency, reduce costs, and improve airline operational support.
As of 2021, LSG (the parent of LSG SkyChefs and Retail InMotion) employed 15,600 people across 140 locations in 40 countries. Kaelis serves 1.5 billion passengers across 100 airlines and railway companies in more than 55 countries.
“We teamed up already in 2022, and beside a solid business relationship, a customer-oriented partnership developed,” Sven Pawelka, Head of Partnership Management at LSG Group, told TRBusiness.
“As the inflight sector is an industry that is constantly evolving, airlines are requesting innovative products. That is why our commercial, design, product development and sustainability teams are working together in joint projects to present the best solutions – based on consumer trends and latest market developments.”
Pawelka added that the two businesses had already “joined forces” in tenders, and that they “strive to provide holistic customer concepts through co-creations”, for example, tailored solutions for airlines.
In addition to providing an enhanced consumer experience, sustainability and waste reduction is central to the partnership.
“Conventional equipment and packaging, made of plastics and other non-biodegradable materials, has a negative impact on the environment,” Pawelka added.
“Through new materials, we will help to minimise waste generation and reduce our carbon footprint, thus helping to conserve the planet’s natural resources and lessen pollution.
“Our customers are also increasingly aware of the environmental impact of the products they consume and prefer brands that offer sustainable options. The products and services developed by Kaelis and the LSG Group respond to this demand, becoming a differentiating factor to attract an environmentally conscious and concerned public – and therefore help airlines to increase passenger satisfaction.”
Specific examples include increasing the use of bamboo, bagasse, rice rusk, r-PET, PLA, wax paper, craft paper, and CPET inflight. “Not only do we want these materials to be environmentally sustainable, but we also want them to be functional and to adapt correctly to the product they are going to be part of,” Pawelka said.
In a statement, Erdmann Rauer, LSG Group CEO, said the strategic partnership brought a “powerful synergy”.
“Together, we will be able to deliver an even more comprehensive offer to the aviation sector and allow airlines to increase their Net Promoter Score, measuring customer satisfaction. We want to deliver a package that covers exactly what the consumers want and includes more sustainable solutions.”
Federico Heitz, Kaelis CEO, added: “We believe that this strategic partnership between the LSG Group and Kaelis will bring significant value to the onboard industry, positioning us as the preferred choice for airlines seeking top-notch inflight products and services.
“Together, we are dedicated to creating unforgettable experiences for passengers, driving operational efficiency for airlines, and shaping the future of inflight services.”
In March, LSG Group reported revenue growth of 75% to €1,960 million for its 2022 fiscal year, a recovery to 85% of its pre-pandemic sales.