Lufthansa provides transparency about business activities in ‘tax havens’
Last weekend, a number of politicians requested clarification in interviews “why Lufthansa has subsidiaries in tax havens”.
In order to create the desired transparency, the company is publishing details of its subsidiaries based in countries or territories that are on the EU list of non-cooperative countries and territories for tax purposes.
All companies operating in countries on this list are companies with operational business (e.g. production of meals and logistics services for local airlines and airports) that belong to LSG Group.
Panama: Arlington Services Ltd – (business purpose: holding company wholly owned by LSG Group) and Sky Chefs de Panama (business purpose: airport catering): 500 employees in total
LSG Catering Guam Inc. (business purpose: holding company wholly owned by the LSG Group) and LSG Lufthansa Service Guam Inc. (business purpose: airline catering); 186 employees in total
Cayman Islands/Virgin Islands:
LSG Group holds a 49% stake in Inflite Holdings Cayman Ltd. (business purpose: holding company). The latter in turn encompasses several entities in the Caribbean, including GCG Virgin Islands Inc (business purpose: ground handling and airport catering) on the Virgin Islands with a total of 103 employees and Goddard Catering Group GCM Ltd (business purpose: catering operations) on the Cayman Islands with a total of 31 employees.
Inflite Holdings’ investments in the Caribbean and South America are subsidiaries of LSG Group’s joint ventures with GCG Catering Group (“GCG”), one of the leading catering service providers in the Caribbean and South America. These subsidiaries are operating catering businesses whose results are taxed locally even if they were managed directly from Germany.
As a global company, the Lufthansa Group is represented in a large number of countries either by itself or through its subsidiaries. Naturally, national and international legal and tax regulations are observed in all countries in which the Lufthansa Group operates. A wide variety of parameters play a role in the Lufthansa Group’s location decisions. For example, as a global catering specialist in the Lufthansa Group, the LSG Group pursues the strategy of establishing companies where this is necessary for operational reasons.