LSG Sky Chefs, which claims 30 percent of the world's airline catering business, is seeking joint ventures at China's 30 busiest airports to expand its share of the robust Chinese market.

The company, which is part of the Germany-based LSG Lufthansa Service Holdings AG, runs joint ventures in eight Chinese mainland cities, including Beijing, Shanghai, Chengdu in western China's Sichuan Province, and Sanya in southern China's Hainan Province.

Serving 120,000 meals a day and currently generating annual revenue of about US$2.2 billion on the mainland, it has an 11 percent of the share of the market, said H.K. Cheung, chief operating officer for LSG Sky Chefs' Asia-Pacific operation.

Its share is much higher for international flights from the mainland airports it serves, he said.

LSG Sky Chefs sees immense potential in the Chinese market, with more overseas visitors coming for the 2008 Beijing Olympic Games and the World Expo in Shanghai in 2010, Cheung said.

China's air travel industry will also be stimulated by the growing middle class and the flourishing domestic tourism sector, he said.

China is expected to become the No 1 tourist destination in the world and the fourth largest source of tourists by 2020, according to the World Tourism Organization.

The number of overseas tourists grew by 21 percent year-on-year and by 11 percent over 2002 to 79.9 million in the first nine months of this year, according to official statistics.

The number of air passengers of Chinese airlines, which topped 90.64 million in the first nine months, is expected to set a record of more than 100 million this year.

Meanwhile, the latest venture of LSG Sky Chefs was launched at the new Guangzhou Baiyun International Airport in Guangzhou, Guangdong Province in South China last week. LSG Asia GmbH, parent of LSG Sky Chefs, owns 30 percent of the venture called Guangzhou Baiyun International Airport LSG Sky Chefs Co, the airport company holds 65 percent and Beijing Hua Zhuo Investment Management Co the remaining 5 percent.

Covering 12,000 square meters and involving 150 million yuan (US$18.07 million) of investment, the Guangzhou venture has the capacity to cook 18,000 meals a day. It is serving about 6,000 meals for 50 flights a day at present.

(China Daily November 22, 2004)