Dnata, the airline services arm of Emirates Group, is likely to complete a joint venture deal with Germany’s Luftansa Group by September, despite ongoing animosity between the pair’s airlines.
The deal, which is awaiting approval from the European Commission and both company boards, would see Lufthansa unit Sky Chefs link up with dnata’s Alpha Flight Group to form a joint airline catering venture.
“We will get there by September and it will happen. Gary Chapman, president of dnata, told Arabian Business. “We expect a significant synergy from that and it will take a lot of focus.” Dnata acquired Alpha Flight from Italy’s Autogrill for $165.7m last year.
The deal comes despite the war of words between Germany’s Lufthansa and Emirates Airline, over the Dubai flag carrier’s aggressive expansion into the European long-haul market.
The German airline has lobbied its government to stop Emirates serving more German cities, leading Emirates’ President Tim Clarke to accuse the rival airline of sabotage.
Their mantra is to take the Gulf carriers down, as well as dominate the markets they sit in,” he said in January.
The pending deal is an indication the firms are able to put aside commercial disputes in order to capitalise on lucrative business opportunities, Chapman said.
“Yes there are areas of conflict but that does not mean we cannot work together on the catering side in the UK as that is the sensible decision for both organizations,” he said.
“I spoke to my chairman Sheikh Ahmed and said, ‘here’s an opportunity and it is a sensible [one]. Despite what might be going on, on an airline front, we should do it.’ [He said] you should do what is right for the business.”
Government-owned dnata, which last year saw profits rise 20.9 percent to a record AED613m ($167m) launched a branding campaign on Thursday aimed at boosting its profile abroad.
The new corporate branding will be rolled out across 38 countries, where dnata employs some 20,000 staff.
Dnata holds a 23 percent share in the British corporate travel company Hogg Robinson Group and owns 49 percent in South Africa-based outsource provider Mind Pearl.
Follow us on
