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Gategroup Completes Major Contract Renewals With DAL

 
Gategroup, a provider of on-board services, has completed major contract renewals with Delta Air Lines (DAL) and its Northwest Airlines subsidiary as part of the carriers' continuing progress to integrate supply contracts.

The multi-year deal, encompassing more than $1 billion in revenue over several years, represents multiple contracts that expand the long-term relationship between DAL and gategroup. The deal involves core gategroup brand Gate Gourmet as well as sister companies Gate Safe, eGate Solutions, Pourshins and deSter.

Under the new agreement, Gate Gourmet retained over 40 business markets worldwide and expanded catering business with Northwest at the following international locations where both airlines have service: Amsterdam Schiphol Airport, Fort Lauderdale/Hollywood International Airport, Los Angeles International Airport and Newark Liberty International Airport.

gategroup has said that in a similar objective to align catering security with catering and provisioning operations, Gate Safe will perform catering screening and security processes for Delta, Northwest and Delta Connection at all the US locations served by Gate Gourmet, following a phased transition.

gategroup has added that eGate Solutions and Pourshins, through an extension of their existing agreements, will continue to serve Delta for a number of years. eGate Solutions provides in-flight catering management services for Delta through its InFlight Exchange business applications suite. Pourshins, meanwhile, manages the majority of Delta's and Northwest's global in-flight food, beverage and equipment sourcing and logistics.

Guy Dubois, CEO of gategroup, said: “Delta is a leading customer for gategroup and its brand companies and has been for more than 50 years. We're delighted to call the world's largest airline one of our top customers. The scope of this business validates gategroup's strategy of building a brand portfolio that provides end-to-end solutions to the travel industry, and demonstrates the cross-selling power of the brands.”

Will gategroup benefit with the contract renewals?

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