The Hindu Business Line : Low-cost airlines see big biz in food sales on board

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.

Saving on catering bill

The rates are lower as the airline saves on its catering bill. “Most low-cost airlines just carry a small quantity more than the food and drinks that have been booked. This helps save on catering costs and this is passed back to the passenger,” a senior airline official said.

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. “It is difficult to give a breakdown of the number of passengers seeking only a beverage or a meal,” an official said.

Full service airlines

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).

In the case of Jet Airways, the move will also affect the catering business. Sources estimate that the catering industry in Delhi and Mumbai alone stand to see a drop in revenue of about Rs 4 crore a month due to Jet Airways operating more flights with Konnect.

Related Stories:
Mumbai Intl airport ties up with Travel Food Services
Serving food on planes, a serious biz indeed