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Published Wed, Apr 14, 2010 05:46 AM
Modified Wed, Apr 14, 2010 07:08 AM

Airlines plate up more choices

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- The New York Times

Those bland sandwiches that airlines sell to economy-class passengers? They're on the way out.

Even as Continental Airlines is ending free economy-class meals on domestic flights this fall, carriers are changing their whole approach to food.

Air Canada has introduced healthful food options like vegetarian sandwiches and yogurt parfaits, and Alaska Airlines has new, more healthful snack food. American Airlines is working with Boston Market. JetBlue is about to start selling food on some long-haul flights. Some carriers are expected to offer combination meals and other promotions similar to those available at fast-food restaurants.

And United Airlines is testing the sale of sandwiches and some food items sold on domestic flights in its Red Carpet lounges at Chicago O'Hare International Airport and Los Angeles International Airport. It will also let passengers preorder in-flight food by the end of the year.

The new offerings are partly the result of the new economics of in-flight food.

Kevin Jackson, managing director of consumer marketing for US Airways, said that when airlines gave away food, "the motivation was to minimize cost." Now that most airlines are selling food, they have an incentive, he said, to "provide better choice and quality for passengers."

In addition, the airlines are competing with new restaurants and take-out food businesses in the airports. Executives of HMSHost and OTG Management, which operate airport food businesses, said sales were thriving, and to-go options - Wolfgang Puck Gourmet Express, California Pizza Kitchen's stand-alone airport kiosks and Cibo Express, among them - were proliferating, particularly since the demise of free food on most domestic flights.

With many more options on the ground, most hungry travelers seem to be bringing food on board. A survey by Forrester Research in the fourth quarter of 2009 found that 19 percent of leisure travelers and 21 percent of business travelers had bought a meal or snack on a plane in the previous year.

Indeed, in-flight food sales are not huge money-makers for the airlines. Tom Douramakos, chief executive of GuestLogix, a Toronto company that makes the hand-held devices and software used by most North American carriers for in-flight sales, said carriers generated a net profit of 5 or 10 cents on a $10 sale of in-flight food. But, he said, gross profit on sales of in-flight liquor generally can go as high as 50 percent to 80 percent on a $10 drink.

The question is whether the changes in on-board food will influence travelers' behavior.

Richard Wong, a transportation lawyer in Washington, said he refused to buy food in-flight "because there's nothing attractive about it" and he prefers to dine on hamburgers and french fries sold by Five Guys at Ronald Reagan Washington National Airport.

On the other hand, Rob Volpe, a market researcher in San Francisco who is an elite-level participant in United Airlines' frequent-flier program, said he was a devotee of United's on-board food, like a yogurt parfait and snack boxes with small portions of a variety of items.

However in-flight food sales change, one thing will probably remain constant: Snacks such as Pringles and candy will remain best-sellers.

When there are "healthy and less healthy options," the less healthy are always more popular, said Paul Platamone, who supplies food to airlines for LSG Sky Chefs, an in-flight catering company.

"When you're on the road," he said, "you become a bit more indulgent."

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