Qantas 2004 Annual Report Download - page 27

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As a wholly-owned subsidiary of the Qantas Group, Qantas
Flight Catering Holdings Limited (QFCH), comprises two
of Australia's leading large-scale flight catering businesses:
Qantas Flight Catering (QFCL); and
Caterair Airport Services Pty Limited (Caterair).
QFCL operates five catering centres across Australia
in Sydney, Melbourne, Brisbane, Adelaide and Perth.
The Caterair business operates catering centres in Cairns
and Sydney.
Together, QFCL and Caterair employ more than
3,800 people.
Qantas Catering’s EBIT improved by 22.8 per cent to $90.0
million, reflecting capacity growth within the main airline
and additional contracts secured from third party airlines.
As the largest flight caterer in Australia, QFCH produced
42 million meals in 2003/04, an increase of 3.8 per cent on
the previous year.
These meals were supplied to Qantas and over 30 external
customers including other airlines, rail and health care
clients.
The year was characterised by increasing competition in
the domestic catering market and an increasing prevalence
of the “buy on board” catering model. This, combined with
the events in the aviation industry over recent years, has
made airline clients more aggressive in their negotiations
with caterers, increasing the importance of the Company's
growth and cost reduction strategies.
Snap Fresh is another wholly-owned Qantas Group
subsidiary, specialising in the centralised production of
frozen meals.
Snap Fresh opened for business in February 2002 and
has clearly established itself as an industry leader in the
production of quality catering for airlines. It is working
towards building the same reputation in the hospitality
and health care industries.
Snap Fresh has a plant capacity of 14 million meals per
annum. Current production levels average 160,000 meals
per week, or more than eight million meals per year,
for Qantas and other clients.
The Snap Fresh workforce has now grown to almost
200 employees.
The business also produces a range of retail products for sale
through supermarkets and continues to work directly with
key clients in the health care sector developing a total supply
solution model in conjunction with other major food
service organisations.
Efforts to secure additional contracts with third party airlines
and other customers remained a key focus for each of
the catering businesses during the year and new revenue
streams were also actively pursued
HighlightThe Qantas Group’s catering businesses – Qantas Flight Catering, Caterair and Snap Fresh
– produced more than 50 million meals in 2003/04.
Catering
Qantas Annual Report 2004 25Spirit of Australia