Catering partner sought

Aer Rianta has begun the search for a joint venture partner for its catering operation in Shannon airport

Aer Rianta has begun the search for a joint venture partner for its catering operation in Shannon airport. The business is understood to be loss-making but Aer Rianta hopes a large international catering group might take a share in the business and return it to profitability.

Expressions of interest were invited yesterday by the company, although unions at Shannon continue to be concerned about potential job losses.

Meanwhile, Aer Lingus is expected to wait at least another month before making any decision on the future of its catering business. The company has said it intends to exit the business if a suitable buyer can be found. Between 15 and 20 expressions of interest have been submitted to Aer Lingus and these are being considered by senior management. Among those understood to be interested are Lufthansa, Gate Gourmet and Sky Chef.

A notice on the Government's tender site says Aer Rianta "is currently reviewing future options for the development of its catering activities at Shannon Airport. One of the prospective options being considered is the establishment of a joint venture with a leading caterer/food service company."

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Shannon Airport handles approximately 2.4 million passengers a year, with an ability to handle four million passengers in the years ahead. Several airlines, including Aer Lingus, do business with Aer Rianta at Shannon. The company does not break out separate figures for the catering operation, which employs about 100 people. The company hopes a large multinational catering company could grow the Shannon business more aggressively.