The hospitality industry alongside travel are two of the most negatively impacted business sectors from Covid-19. To be in either currently is a huge challenge, to be in both sees the challenge compounded.
To underline the scale of the problem Heathrow Airport in 2019 reported revenues of more than £3 billion with profits of £546 million. Serving 80 million passengers in 2019 and showing growth across all parts of the business, Heathrow was Europe’s busiest airport and had grown consistently for 9 years.
Today it is estimated that as many as one third of all jobs at Heathrow will go as a direct consequence of the Covid-19 crisis.
Alpha LSG Sky Chefs, acquired at the end of last year by Dnata Catering, is now liaising with staff about potential job cuts. The caterer provides in-flight catering for more than 60 airlines at Heathrow, mostly in the airline fine dining catering category.
Since its formation, Alpha LSG grew into a competitive, industry-leading business. At the time of last year’s acquisition it reported revenue of over £290 million and employed 3,500 people across 15 airport catering facilities and two central production facilities in the UK. It was producing more than 30 million meals, serving more than 160 thousand aircraft belonging to its customers.
Alpha LSG Sky Chefs did take advantage of the Government’s furlough scheme, but now says cash flow sees it unable to continue furloughing staff through to the end of the scheme.
Unions including the GMB are reported to be ‘disappointed’ with the situation, but all involved face a crisis that they will need to work together on to achieve the best solution.
Alpha LSG Sky Chefs – 14 July 2020