British Airways in talks to avoid bankruptcy at Gate Gourmet, UK operations

08/23/05 - newratings.com

LONDON, August 23 (newratings.com) – British Airways Plc (BAY2-GBX) and its union officials are engaged in last-minute talks with in-flight catering company Gate Gourmet in a bid to avoid the possible bankruptcy of the US company’s UK operations.

Gate Gourmet, which fired hundreds of its employees earlier this month resulting in an unofficial strike at the UK airline company, has sought an improved commercial agreement with British Airways by Tuesday evening. Gate Gourmet, owned by the buyout firm Texas Pacific Group, is also engaged in talks with the Transport and General Workers' Union over the more than 600 sacked employees. A bankruptcy filing by Gate Gourmet could result in significant job losses and threaten the in-flight meal services provided by the company to British Airways.