Emirates Group subsidiary Dubai National Air Transpart Association (dnata) has entered into an agreement to acquire two catering businesses of Australia-based Qantas for an undisclosed amount.
The catering businesses of Qantas involved in the transaction include Q Catering and Snap Fresh, which are operated as wholly-owned subsidiaries under the Qantas Catering Group.
Q Catering currently operates catering centres in four Australian ports including Melbourne, Brisbane, Sydney and Perth, while Snap Fresh is a meal production plant located in Queensland that offers Australian-made frozen meals to airlines and customers in food retail and healthcare industries.
As part of the agreement, dnata will be responsible for catering services in Qantas flights for ten years, while Qantas will work with suppliers to design and develop the menu.
Dnata currently offers catering services to Qantas Group flights in Canberra, Adelaide, Johannesburg and London.
Qantas Domestic CEO Andrew David said: “The sale would enable Qantas to partner with a global leader in inflight catering and prioritise investing in the airline.
“We’ve always said that we would explore the sale of certain assets where it makes sense, just as we’ve done before, including with the sale of our catering facility in Cairns and Qantas Defence Services.
“The catering businesses will benefit significantly from dnata’s global footprint, catering expertise, and ability to drive investment and growth for what is a core focus of its operation.”
The deal, which is subject to approval from the Australian Competition and Consumer Commission (ACCC), will see Qantas Catering Group become a part of dnata’s Australian operations.
After completion of the deal, around 1,200 employees of Qantas’ catering businesses will join dnata operations.
Dnata catering division senior vice-president Robin Padgett said: “This agreement reflects our confidence in Australia as a market and the on-going growth potential into the future.
“This includes investing in more infrastructure, starting with a new catering facility in Sydney. We look forward to the opportunity to welcome the employees from Qantas’ inflight catering businesses to the dnata team.”