The European Commission said it has cleared the proposed joint venture between Deutsche Lufthansa AG’s catering unit LSG and Swiss peer Gate Gourmet, according to AFX news wire. The venture would see the groups combine their airline food catering businesses at Paris Charles de Gaulle airport.
The cooperation is limited to servicing airlines operating flights to and from Paris.
The commission said the transaction would not significantly impede effective competition in the in-flight catering market in the Paris airports region.
Although the proposed joint venture and Servair—the catering firm of Air France—would be the only two major airline catering providers at Charles de Gaulle, the commission’s market investigation has shown that recent new entrants exert competitive pressure on the two market leaders.