National flag carrier Turkish Airlines (THY) has terminated its catering services agreement with Singapore-based in-flight catering service provider SATS.
The airline has instead approached Austria-based catering company DO & CO to start offering catering services at a new airport in Istanbul from 29 October this year.
In October last year, Turkish Airlines entered into a memorandum of agreement (MOA) with SATS Investments to provide in-flight catering services at the Istanbul airport. The duration of this agreement was also extended recently with a new contract.
However, THY said in a statement that its negotiations with SATS were terminated and the agreement signed between the parties was abandoned during a recent board of directors meeting.
Turkish Airlines said: “Previously, we have informed that Turkish Airlines has entered into a memorandum of agreement with SATS Investments (SIPL), a subsidiary of SATS, regarding the procurement of catering services at Istanbul New Airport, applicable upon transfer of Turkish Airlines’ operations thereto and subsequently that an additional contract has been signed between the parties, extending the period of the aforementioned MOA.
“Following our discussions with SIPL and in accordance with the decision of the board, the parties would like to announce that the parties have mutually agreed to terminate the MOA.
“Our incorporation has started negotiations with our current catering provider, THY DO & CO İkram Hizmetleri, a joint venture between DO & CO and Turkish Airlines, regarding the procurement of catering services at Istanbul New Airport and other airports in Turkey. The material developments will be disclosed to public.”