Lufthansa halts investor search for LSG

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Lufthansa has decided not to sell its catering subsidiary LSG Sky Chefs.

The German airline group appears to have looked for an investor to acquire at least a share in the catering unit. But the search has now been halted.

"We will not sell LSG Sky Chefs," says Lufthansa. "The further development and planned expansion of our catering business can be realised even without external partners."

The carrier adds that LSG's "positive financial development in recent years" has reinforced the decision to retain the unit as a wholly-owned subsidiary.

LSG is among the carrier's profitable service subsidiaries - the others being maintenance arm Lufthansa Technik and IT unit Lufthansa Systems - which helped to turn the operating loss of the passenger airline into a group net profit.

LSG generated pre-tax earnings of €97 million ($125 million) after sales worth around €2.5 billion in 2012.