Low-cost airlines see big biz in food sales on board

New Delhi/Mumbai: The move to sell food and drinks could prove to be a money-spinner for the low cost airlines but the catering firms are looking glum as full service airlines turn into low or semi-low cost carriers.
For a growing number of domestic air travellers, no journey is complete unless they have had something to eat or drink on board. The days when you could get not-always-pleasing whiffs of home cooked food 35,000 feet above the ground may not be over, but the trend is increasingly towards purchasing a drink or a sandwich.
Of course, both come at a price. A vegetable sandwich on SpiceJet costs Rs 80 and a non-vegetarian sandwich costs Rs 100 if you have forgotten to book in advance. If you have been diligent, the cost comes down by about half.
The rates are lower as the airline saves on its catering bill. SpiceJet is coy about the number of passengers seeking a snack or a beverage but say the number is substantial. Jet Airways Konnect, the new low-cost sub-brand of Jet Airways, has seen almost half its customers requesting for something to eat or drink – even though they have to pay for it.
Full service airlines such as Jet Airways, Air India (Domestic) and Kingfisher include the cost of providing a meal to the passenger in the fare.
According to industry estimates, on an average a full cost airline spends $5-$7 (Rs 250-Rs 350) a meal served including water and soft drinks. Breakfast costs the airlines a little less at $3-$5 (Rs 150-Rs 250).
05/07/09 Ashwini Phadnis/Shubhra Tandon/Business Line

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Categories: Low Cost General Jul 2009