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Gategroup to cater for Eastern Airways

5th June 2008, 10:55am

gategroup has agreed with Eastern Airways, a UK based regional airline, to enter a joint venture for ground handling and catering activities.

Under the transaction, gategroup will acquire a majority stake in Regional Handling, a wholly owned subsidiary of the airline.

The new joint venture will initially operate in two locations that are main bases for Eastern Airways; Aberdeen in the UK and the Isle of Man.

Guy Dubois, President and CEO Designate of gategroup said: "This is a natural area of growth for gategroup, and in particular for member company Gate Aviation, which already offers an extensive network of airline specialty services in the U.K. and Europe."

Richard Lake, Eastern Airways' Managing Director commented: "Eastern Airways has been searching for a suitable strategic partner in the ground handling and catering operation, which will allow us to focus on our core business of passenger transportation."

The joint venture will offer comprehensive services in the "last mile to the aircraft," specializing in ground handling (passenger check-in, baggage handling, load control and ground operations), catering and other support services. Aside from Eastern, Regional Handling also serves Manx2, Loganair and Aer Arran.

The transaction closed on May 30, 2008. Terms of the agreement are confidential.

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Words Clare Riley 0 comments

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