In-flight catering gets taste of fast-food

New Delhi: Cafe Coffee Day, which has a tie-up with Air Deccan and GoAir, is looking at 25% growth per annum for its in-flight catering business.
It is also in talks with various other low cost carriers (LCC) to provide products on-board. According to industry estimates, 65% of passengers buy snacks or beverages onboard in LCC. Air Deccan’s turnover pertaining to in-flight catering was only Rs 37 lakh in December 2005 as compared to Rs 1.2 crore in December 2006. “We are looking at 100% growth. In-flight catering is an added source of revenue for LCCs,” Air Deccan’s head, in-flight sales, Manikantan told ET.
About 55% of the people on board Air Deccan’s flights buy F&B (food and beverage) items. It has a revenue-sharing arrangement with Cafe Coffee Day. Indigo, a low-cost no-frill airline, provides Pepsi and some other products like juices and cookies on-board. It’s conversion rate is around 60-70%.
11/01/07 Vishakha Talreja/Economic Times

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