23 May 2012
Malaysia Airlines (MAS) cancels LSG Sky Chefs-Brahim's minimum baseline revenue provision
(BRAHIMS opening price today (23.05.2012) was RM 1.15)
Brahim's Holdings Bhd said LSG Sky Chefs-Brahim's Sdn Bhd (LSGB) and MAS have mutually agreed to extinguish the minimum baseline revenue provision for the remaining duration of their contract until end of the year.
"We wish to state that in the past three financial years (FYE 2009 to FYE 2011), it has not been necessary for the provision on the minimum baseline revenue to take effect, as MAS' catering requirement at Kuala Lumpur International Airport and Penang Airport has well exceeded this baseline figure," it said.
In a statement released yesterday, the company said the catering agreement between LSGB and MAS remained intact and Brahim's remained confident of the prospects of the in-flight catering business.
Brahim's signed an agreement with LSG Sky Chefs (through LSG Asia GmbH) on Monday for the purchase of LSG Sky Chefs' (LSG) 49 per cent stake in their joint-venture company, Brahim's-LSG Sky Chefs Holdings Sdn Bhd (BLH), for RM130 million cash.
The deal is aimed at further increasing its footprint in the business.
LSGB, a subsidiary of BLH, is the principal in-flight services provider at KLIA and Penang International Airport and currently serves 36 international airlines.