Why Can’t Airlines Make Money Selling Food On Board? Why Isn’t Airline Food Co-branded?
In the late 1990s and early ’00s many airlines ended free meal service and replaced it with a wide variety of branded meals from places like Au Bon Pain, Hard Rock Cafe, and Friday’s. In recent years, nearly all co-branded food has vanished. On some airlines, there’s nothing even for sale on flights less than 2.5 hours. Those that do sell anything on shorter flights of this length typically have little more than “vending machine” choices. Logistically, it’s surely possible for airlines to sell food on flights of this length but, obviously, it must not be profitable to do so. The questions: Why is it so difficult to make profits selling food on board airplanes? Why did co-branded food flop?
Tags: Airline, Airlines, Board, Can't, Food, Isn't, Make, Money, Selling
December 24th, 2009 at 3:52 pm
How much do you put on any given flight?? how do you guestimate how many meals will sell? Do you assume that everyone onboard will buy a meal, and cater it full?? What if only half the people decide to buy it?? Do you think Au bon Pan will take the leftovers and try to resell them?? Would you like to get a ‘used’ meal left over from a previous flight and on top of that, have to pay for it? What if the airline only ordered 50 meals for a flight, but 70 people wanted them??
Catering is expensive and food spoils…and someone has to pay for it. Au bon Pan is certainly not going to agree to charge an airline only for what they sell on board. They are going to charge for each and every one of the meals they put on an aircraft.
It’s certainly not CHEAPER for an airline to do what you suggest…they may as well have continued with the catering they always had before. Unless you’re diabetic, who needs to eat on a flight of 2.5 hours or less?? Get a Snickers Bar at the Newstand on your way to the gate.
December 24th, 2009 at 7:02 pm
I think right now people already feel they are paying a lot for their airline ticket. Also some airlines are charging if you want to check in luggage. Because people are feeling they are being nickle and dimed, many choose to bring their own food on-board or buy something quick at McDonald’s inside the terminal.
I know some airlines were selling those snack boxes or a sandwich for $5. However some people probably would rather not eat on that flight and eat something when they arrive at their destination. The food offered looks nice but it also seems that you will get hungry pretty soon as it doesn’t look like food that will really fill you up.
December 24th, 2009 at 11:19 pm
continental airlines is the only one that has a division specialized in food production. they stopped doing it because they can make much more money selling food that is not co-branded all the food that gets into the airplanes the company must pay for it and it doesn’t make much business sense to put 100 cinnabon cinamon rolls when 50 get sold and the rest the operator of the aircraft have to pay for it and that’s not counting gas.
December 25th, 2009 at 5:03 am
I guess people aren’t willing to spend money on food when it is like a 2 hour flight and they can live without it. I can only see it working if it is a longer flight like 6 hours or more. If they cancel food for international flights completely this might work.
December 25th, 2009 at 6:34 am
well ppl would just bring their own food i guess, but for shorter flights no one would actually buy food…so they just charge for the extra food in the ticket