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Alpha loses long-running Thomsonfly contract to LSG - 25/10/05
Source: Reuters; AFX News; The Moodie Report
By Mary Jane Pittilla
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UK. Alpha Airports Group said on Tuesday its long-running contract to provide inflight catering to UK charter airline Thomsonfly would not be renewed. It has been awarded to rival LSG.

Shares in Alpha fell -12.2% to 75.5 pence on the news at 0736 GMT, Reuters reported.

Alpha said the contract, which contributes ?4 million (US$7.1 million) a year, would end in April 2006. Alpha had provided catering to Thomsonfly (formerly Britannia Airways) for 30 years.

Alpha Chief Executive Kevin Abbott said in a statement: 'It is hugely disappointing that after such a long and successful service history with Thomsonfly we have lost this contract due to a highly competitive pricing environment.

'We will continue to pursue other opportunities to offset this loss and we will review our UK cost structure to minimise the future impact on profit.'

Alpha provides retailing and catering to airlines in 15 countries. "