Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, February 24, 1993 TAG: 9302240064
SECTION: BUSINESS PAGE: A-9 EDITION: METRO
SOURCE: By DAN BLAKE ASSOCIATED PRESS
DATELINE: LENGTH: Medium
TIME TO TIGHTEN THOSE SEAT BELTS
Airlines are giving new meaning to the old joke that their food is lousy and portions too small.They've switched from hot meals to cold snacks. They pour the soda into cups instead of giving you the can. They're doing away with garnishes such as hard-boiled egg slices and rosette-sliced radishes.
Major domestic carriers are cutting back on food costs after suffering billions of dollars in losses in recent years for reasons ranging from fare wars to fuel inflation.
Airlines hope meals are one area where they can make little changes that will save big money without angering too many passengers.
"People never cared very much for the food anyway," said Rose Pace-Bagdanic, president of Pace Travel Inc. in Austin, Texas.
USAir expects to save about $1 million per year by pouring an 8-ounce cup of soda for each passenger, rather than giving away whole 12-ounce cans.
American Airlines has started slicing melons rather than cubing them, speeding preparation and saving on labor.
The most dramatic cutbacks are on flights dominated by business travelers, such as weekday morning and evening trips between major cities.
"Most passengers on a vacation do care [about the food], but the corporate traveler could care less," said Joan Duran, president of La Rochelle Travel Inc., a New Rochelle, N.Y., travel agency.
Southwest Airlines' no-frills, low-fare strategy has helped make it the only profitable major airline in the country. Food service on Southwest doesn't get any fancier than a little bag of trail mix or cookies.
For most airlines, however, the challenge is to save on meals without appearing to skimp.
With fares virtually identical on most routes, airlines try to distinguish themselves with fancy perks. Virgin Atlantic Airways has a masseuse on board some flights and Continental Airlines touts a more comfortable seat in business class. Video screens mounted on armrests are becoming more common.
"They can offer the consumer more in other areas," said Richard M. Copland, co-owner of Hillside Travel Inc. in New York. "People are looking for value."
But Jim Eraso, president of Key Biscayne Travel Service Inc. in Florida, said service seems to be deteriorating, even in first class. "It seems like the only thing you're paying for is the seat and a drink," he said.
Only about 5 percent of a major airline's operating expenses go to food, but that can mean hundreds of millions of dollars a year for larger airlines, which are among the biggest institutional meal providers in the country.
American, for example, served 169,000 meals a day last year at an average cost of $8.50 per passenger, highest among the major airlines, said Avitas Aviation, a Reston airline consulting firm.
American expects to cut $16 million in food costs this year.
United Airlines hopes to save money by selling its internal food service kitchens, buying meals from outside contractors instead. The carrier also has narrowed the hours in which it serves dinner or breakfast and eliminated food in economy class on overnight flights.
"Most people want to sleep anyway," said Joe Hopkins, United spokesman. "The key is the time of day and the length [of the flight]. There's more service on longer flights."