What has prompted this investment and strategic alliance and why now?
KLM’s existing facility at Amsterdam Schiphol has to be replaced because of airport expansion. A new one is planned to be built and opened ready for 2029. Of course, a new facility will require large investment, and the lead time to design the new facility, everything behind it takes three four years as well. To open in 2029, we need to finalise the plans this year for that, so that the construction and everything can start on time. So I would say the deadline for KLM was probably the lead time to realise the new facility.
KLM felt that teaming up with an industry leader would ensure that the new facility would fulfill all the standards the industry has set and also incorporate things like innovation and technology. If you’re a standalone catering company it’s much more difficult than if you’re part of a larger group that has a lot of know-how in all these areas, and that’s why the teaming up with a partner was their ambition.
KLM issued a tender in the middle of 2025 where multiple, notable caters were invited to compete and at the end they selected us as their partner going forward. KLM met with us, they visited different facilities just for themselves to understand really what catering means, to understand if this is their call or not, if they can do it themselves or if they needed help, so the whole process took almost two years.
Some might argue this will give you a dominant position in the Dutch market. Do you expect to face any regulatory hurdles?
We will have two separate independent businesses. We will still have our existing business that serves a lot of international airlines in Amsterdam that is fully owned by us. And then besides that, we will have the joint venture with KLM where we own 75% and KLM owns 25%, and that only serves KLM and KLM Cityhopper. Because of that, the regulatory approvals are visibly light, and we’ve clarified that throughout the process already. The two business will remain separate. It will continue as it is, the client base is different so from that point of view there’s no concentration of business and so it’s really two separate businesses going forward.
What difference does it make to the size of your business as Gate Group?
Our group revenues are approximately €5 billion and this will add another around €250 million – around five percent of our business – so that’s significant. In addition, we already have a joint venture with Air France, which is called Servair, and this will also further strengthen our relationship with Air France/KLM as a group. So, from that point of view, it is a very strategic step because Air France/KLM as a client becomes even more important for us going forward.
In terms of the people, KLM Catering Services has around 1250 employees and gategroup employs 47,000 globally in nearly 300 locations.
Will there be any streamlining of the workforce in the short or longer term?
Well, first of all, our focus is, of course, on business continuity. Our focus is also to try to further improve the operational performance of the KLM operation. In the mid-term, as we have with all of our business globally, we believe we can make it more efficient and reduce some of the costs. At the same time, with the growth that KLM is targeting, this will not result in any major redundancies. So, for the employees and for the leadership team, they will see a lot of changes over time, but not something on day one and nothing radical. When we move to the new facility, that is where, with the automation and technology, we hope that we can make a larger step in improving the cost and the efficiency, but we can all anticipate that in the next two three years, we can do that without any redundancies.
Are you concerned about the timing of this deal in the current difficult economic climate due to what’s happening in the Middle East?
No, we’re proud to team up with KLM. They’re a strong airline. They’ve existed for almost 100 years. They’re still very well positioned. We believe in the future of the airline and we’re happy to be their partner on this. Going forward we have signed a 20-year contract with them. Yes, 20 years is a little bit longer than, say, the average for a client base like this and this shows the commitment from both parties.
It’s a choice we’ve made for the longer term, not for the short term. And I believe the outlook for the industry, longer term, remains a strong outlook. We’re confident on that. And that’s why there was no questioning if the short-term crisis would have a longer-term impact on our business and if we should do this or not.
Tell me more about the new facility
It will be larger than the existing KLM Catering Services facility and it will also be different. We have not finalised the drawings in the square meterage, but I can tell you it’s going to be one of the largest airline catering facilities, certainly in Europe, because all the business will be in one unit, whereas a lot of hubs have multiple units.
Will it merge with your existing facility at Amsterdam?
No, we will have two dedicated facilities – one dedicated to KLM and one dedicated to the international airlines. This is the most efficient way, but it’s also the best for the airline customers, and that’s also helped us on the regulatory approvals because the two remain separate going forward.
Nothing changes for our existing international airline customers at Schiphol because the infrastructure where we serve them from stays as it is, the management team stays as it is, the staff will remain separate. This acquisition does not change anything on how we operate for the international airlines in Amsterdam.
You say the new facility will bring ‘advanced automation, the highest environmental sustainability standards, and a modern work environment dedicated to employee wellbeing’. Can you expand on this?
Yes, we agreed with KLM that we wanted to design the new facility based on the most advanced standards from an environmental perspective – energy consumption, recycling, and also from a work environment. We will be designing the facility to meet the BREEAM (Building Research Establishment Environmental Assessment Method) standard. I don’t believe there’s one unit globally today that would achieve that status. That’s the joint ambition of KLM and us to achieve that. So that, for the employees, it’s a much better working environment.
When it comes to the environmental footprint, it will have the lowest negative impact on the environment. We already have standards around processes and organisation, but we’re also progressing very well on automation in the production process. This would be the first facility for us, or at least the one that we plan for now, where all of our ideas will come together. And from that point of view, we assume this will be, also for us internally, a flagship unit where all the ideas for the first time will be realised in one location. This is possible when you build something from scratch. It’s like the difference between renovating a car or buying a new car. It’s a unique opportunity to really bring all those ideas now together in one facility. It’s a really exciting opportunity, and will serve as a blueprint for what we can do in the future.
Alongside the environmental innovations, I would say this will probably be one of the most pleasant workplaces to operate in and will set new in employee health and welfare. We’d be very happy to invite you once we open.
What else can you tell me about your plans for this new partnership?
Of course, being a partner, we plan to work closely with KLM to further develop their onboard concepts and adapt to the changing business environment, but the focus of the joint venture is Amsterdam only, nothing beyond. The deal is due to close in Q2 so until we close the transaction we cannot operate as one, but what you’ll see in our dedicated hall at WTCE in Hamburg in April will lift the film a little on what we’ll be doing on the automation side.
