Gategroup has extended its ongoing contract with Virgin Australia for all domestic and short-haul international flights. The existing agreement, which was set to expire in 2017, has been extended by two years to 2019.
Under the agreement, Gategroup subsidiary Gate Gourmet will provide food assembly, flight assembly and handling services for all domestic and short-haul international flights departing from the locations in Australia where Gate Gourmet has a presence.
The total value of the contract for four years until 2019 is approximately CHF 300m. On an annual basis, Gate Gourmet provides services for the airline for more than 125,000 flights.
Herman Anbeek, president of Gategroup’s emerging markets division, said: “We are proud to extend the successful partnership with Virgin Australia, one of the Group’s strategic customers. Our investment in organisation, the development of our network and the business relationship with Virgin Australia has enabled us to support Virgin Australia’s continuous drive to improve passenger service levels at a very competitive cost. The extension shows our ability to adapt gategroup’s operational model according to changing requirements from Virgin Australia as it repositions itself from a low-fare to a full-service airline.”