Air France-KLM to sell Servair to HNA for $736m

Air France-KLM is in talks to sell a 49.99 per cent stake in its airline catering unit, Servair, to China’s HNA.

Air France-KLM is in exclusive talks to sell a 49.99 per cent stake in its airline catering unit, Servair, to China’s HNA Group.

The deal would value Servair at €475 million ($736m), the Franco-Dutch airline said yesterday.

The deal is conditional on HNA’s acquisition of Gategroup Holding, another airline caterer.

The tie-up, which Air France-KLM said would create a world leader in airline catering, comes as it is recovering from years of losses amid competition from airlines such as Ryanair Holdings and EasyJet in Europe and from rapidly expanding Middle Eastern long-haul carriers.