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Europe / Airports / Food & Beverage
Alpha-Journey joint venture at Heathrow
By Doug Newhouse, 22 November 2009

Autogrill Group's flight division Alpha and Journey Group, a UK provider of flight services and logistics, have entered into a joint-venture agreement to manage the inflight catering operations serving airlines at London Heathrow with an expected annual turnover of around £70m.

A new business, known as Alpha-Airfayre Ltd (51% Alpha; 49% Journey Group), will use the existing operating units of Alpha Flight UK Ltd and Air Fayre Ltd, a Journey Group subsidiary, at London Heathrow, to prepare around 30,000 meals a day for 18 international airlines. All other activities currently undertaken by both companies are outside of the scope of the agreement.

"We are delighted to have entered this agreement, as it brings together the best aspects of the two businesses," said Stephen Yapp, Executive Chairman of Journey Group.

"The combined operations at London Heathrow airport will provide our customers with even more choice and expertise, whilst at the same time continuing to deliver exceptionally high standards of service. For our employees we will be able to offer variety, career progression and the opportunity to be part of a larger organisation."

Ken Adamson, Managing Director of Alpha Flight Services UK said: "The joint venture at Heathrow forms a key part of Alpha's overall UK and Ireland growth strategy, which is all about focusing on what is important to our customers.

"Our customers want highly cost-effective logistics operations, combined with the experience and capability to serve their often complex requirements, and consistently produce the finest authentic cuisine. This new partnership will enable us to deliver a unique and exciting proposition for both our current and new customers."

Alpha provides inflight catering and retail services for over 100 airlines in 11 countries. It is a leader in the fast growing market for onboard sales of food and beverages.

In 2008, the turnover of Alpha amounted to £343.4m, of which £28.3m was generated at London Heathrow. Journey Group, an airline services provider, operates inflight catering at London Heathrow through its subsidiary Air Fayre, which posted sales of £33.6m in 2008.



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