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Managing in Troubled Times Case Study

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Case Title:

LSG Sky Chefs: Managing in Troubled Times

Publication Year : 2004

Authors: Siva Rama Krishna, T Phani Madhav

Industry: Transportation

Region:USA

Case Code: TRT0001

Teaching Note:  Not Available

Structured Assignment:  Not Available

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Abstract:
In 2003, LSG Sky Chefs, a wholly-owned subsidiary of the German carrier Deutsche Lufthansa (AG), was the world leader in the airline catering industry. LSG derived its revenues from the US and international airlines that have no flight kitchens of their own. However, after the September 11 terrorist attacks, the airline industry witnessed a severe financial crisis due to the decrease in the number of passengers. This severely affected LSG Sky Chefs and other airline catering companies as many airlines cancelled complimentary meal services as part of their cost cutting strategies. Adding to the company's woes, the Severe Anti-inflammatory Respiratory Syndrome (SARS) disease in Asia and the wars on Afghanistan and Iraq further worsened the situation.

Pedagogical Objectives:

  • To discuss LSG's efforts to recover from the slump in the business post September 11
  • To discuss whether the new initiatives 'buy-on-board' and 'in-flight cafe' that were considered as a shift from the old paradigm where the foodservice was dictated by what airlines could afford, would yield results.

Keywords : LSG Sky Chefs; Lufthansa; Airline catering; Buy-on-board; In-flight cafe; In-flight management; Chef Solutions; Airport gastronomy; Onex Corporation; Managing in Troubled Times Case Study; Dobbs International; LSG Holding

Contents:

  • Lsg and sky chefs
  • Post September 11th 2001
  • New initiatives

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