Caterair
title: "Caterair" type: doc version: 1 created: 2026-02-28 author: "Wikipedia contributors" status: active scope: public tags: ["airline-catering", "george-w.-bush", "the-carlyle-group-companies"] topic_path: "general/airline-catering" source: "https://en.wikipedia.org/wiki/Caterair" license: "CC BY-SA 4.0" wikipedia_page_id: 0 wikipedia_revision_id: 0
::data[format=table title="Infobox company"]
| Field | Value |
|---|---|
| name | Caterair |
| type | Privately held company |
| industry | Airline |
| predecessor | Marriott Corporation |
| founded | |
| founder | Group of investors including Daniel J. Altobello and Frederic V. Malek |
| defunct | |
| fate | Bankruptcy |
| successor | LSG Sky Chefs |
| hq_location_city | Rockville, Maryland |
| hq_location_country | United States |
| area_served | Texas and Worldwide |
| products | Airline meals |
| owner | Carlyle Group |
| num_employees | 20,000 peak |
| num_employees_year | 1991 |
| :: |
| name = Caterair | logo = | type = Privately held company | industry = Airline | predecessor = Marriott Corporation | founded = | founder = Group of investors including Daniel J. Altobello and Frederic V. Malek | defunct = | fate = Bankruptcy | successor = LSG Sky Chefs | hq_location_city = Rockville, Maryland | hq_location_country = United States | area_served = Texas and Worldwide | key_people = | products = Airline meals | owner = Carlyle Group | num_employees = 20,000 peak | num_employees_year = 1991
Caterair was an American company that provided in-flight meals for passengers on large commuter aircraft. The company was based in Texas but headquartered in Rockville, Maryland.
It is famous for its association with George W. Bush, who was a member of its board of directors between 1990 and 1994, and even served on its audit committee. He quit the Board to run for the position of Texas governor, months before the firm declared bankruptcy.
The company was a Texas-based investment of the private equity firm Carlyle Group. The company failed in 1994 and the remains of the business was sold in 1995 and merged by its new owner with LSG Sky Chefs.
History
In 1989, a Group of Marriot's upper management together with Carlyle acquired the business from Marriott Corporation which sold its In-Flite Services catering business. Carlyle took a 50% stake, committing $93.8 million. The business was renamed Caterair and the investment was funded primarily by a massive issuance of junk bond financing, as was the trend at that time.
By 1991, the company had contracts with 48 air carriers in 28 cities include Virgin Atlantic at Boston’s Logan, All Nippon at JFK in New York, and Aerolineas Argentinas at Miami’s airport.
With the global economy spiralling into recession during the early 1990s, the airline business faltered, and with it did Caterair. It eventually defaulted on its debt obligations during 1994. Hence, it was later dubbed CraterAir, by Wall Street analysts.
Caterair was sold by Carlyle to the Canadian private equity firm, Onex Corporation, in September 1995 which merged it with its other acquisition LSG/Sky Chef.
Quotes
David Rubenstein (a founder of the Carlyle Group) described that time to a convention of pension managers in Los Angeles last year, recalling that Republican fund raiser, Fred Malek approached him and said:
References
References
- Burns, Margie. (July 30, 2012). "Today's history lesson: CaterAir, George W. Bush (and Marriott)".
- (1 July 2003). "How Bush Got Bounced From Carlyle Board". Progressive Review.
- (30 October 2004). "The New York Times: Paper of Record and Ripoff".
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