Airline caterers adapt to survive with shift to buy-on-board

In the 1980s American Airlines calculated that it could save up to $100,000 just by removing olives from its salads. Since then, the industry's economy drive has continued apace forcing airline catering firms to reinvent themselves. BA said Thursday customers on its short-haul economy flights would be sold Marks & Spencer sandwiches because its customers said they would prefer to pay for food from a brand they recognise. "The cost of the existing catering service hasn't been reflected in customer satisfaction," a spokeswoman said, declining to provide figures. The shift to buy-on-board food is driving catering companies into each others' arms as companies seek scale in a fragmented market and look to build up retail and data expertise to maximize profits. "Traditionally airlines have handed meals out and not had to worry about who's got the meal. Now it's having a deeper awareness about the customer, what they've bought, how they bought it, when they bought it," said Robin Padgett, head of air services group dnata's catering division. Airline caterers operating in Europe include Lufthansa unit LSG SkyChefs, Gategroup, Austria's Do&Co and dnata, part of the Emirates Group. LSG bought Irish in-flight sales specialist Retail inMotion last year to serve its onboard retail business and is also restructuring, cutting up to 2,400 jobs. Air France-KLM is selling a stake in its catering business Servair to China's HNA, which is also buying Gategroup as it builds out its aviation interests through a series of deals.<br/>