DHL eyes US$17b airline catering business

Global - DHL has its sights set on the airline catering sector, estimated to be worth 12 billion euros (US$17 billion) annually.

The 3PL expects to leverage on its expertise in supply chain management and business solution to cater to the sector, which will see DHL handling end-to-end supply chain services from procurement to provision of food catering and in-flight entertainment, final mile delivery to the aircraft and returns management.

DHL previously landed a short haul and domestic catering services contract from British Airlines in London. The deal will see DHL transporting up to 13 million meals per annum, in-flight retail and in-flight media and all items for passenger in-flight comfort. The contract will come into effect in April 2010.

"There are over 40,000 unique items that go on board a B747 aircraft, enabling numerous permutations offered to passengers depending on the passenger's travel class. A seamless supply chain is critical as airlines have short turnaround times and exceedingly low tolerance for delays," said Paul Graham, CEO of DHL supply chain Asia Pacific. 

DHL's expertise in supply chain and logistics is expected to help airlines better manage the "above the wing" cost, the company said. "The current challenging economic climate encourages businesses to consider changes that will make a fundamental difference in their product offering, service quality and bottom line," he added.