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Lively ITCA meets amid uncertainty Innovative stands and an atmosphere of change that has key players making bold strategic moves greeted visitors to this year’s International Travel Catering Association Conference February 13-15 in Nice, France. But even as the Mediterranean sun streamed through the skylights of the airy Palais des Congrès et des Expositions, talk among many of the conferees was of uncertainty over whether the industry will be affected negatively by forces an ocean away where further consolidation of the airline industry seemed imminent. Also, talk of economic slowdowns forced groups like the International Air Transport Association to soften expectations for the year ahead. A colorful array of nearly 150 stands greeted visitors to this year’s event, among the most prominent was the companies of the gategroup, which includes Gate Gourmet. Bringing in more than half a dozen strategic purchases in the past year, the company’s bustling stand was awash in forest green. Jetlagged visitors tanked up on coffee which flowed from the Nestlé stand. This year, a colorful stand of innovative packaging in a stylish setting from the French company IPI was picked for the Willie Seeman Trade Show Award for best stand presentation. Caterers and suppliers are coming off a year with airline customers again enjoying profits. However, the eyes of many, including ITCA president David Young of the Watermark Group were watching not only a large group enjoying the event but the economic fortunes of several regions. “The dark horizon is over the U.S.,” said Young. This year’s ITCA conference saw major caterers in the industry positioning for the year ahead. At the stand of LSG Sky Chefs, CEO Walter Gehl said that the company is happy to again be part of a growing airline industry. After several years of adjustments, he said LSG Sky Chefs was emerging more flexible after cost cutting, and shedding loss-making operations. “Now we have to change our minds to prepare to take part in the growth market on a strategic level,” he added. The strategic moves of the gategroup were in evidence throughout the event. The company’s chairman and CEO, David Siegel give attendees a rundown of the proposed mergers, particularly Northwest Airlines and Delta Air Lines which stalled shortly after the event due to conflicts among the two pilots unions. Siegel – a veteran of several such business deals -- said integrating a heavily unionized workforce is an ongoing issue in mergers such as the one now contemplated by the two airlines. After the update on the U.S. market, Siegel turned his attention to potential airline customers, urging them to cooperate with caterers and suppliers “in a way that is sustainable for both parties.” The policy of buying products directly from the manufacturer and turning the over to the caterer for assembly and logistics places caterer in a difficult financial position, he said. “If we hand you our margin, we are not in a sustainable business,” he warned. Servair’s new president, Patrick Alexandre briefed media on the company’s phase two of an ongoing productivity improvement program. In the future, he said the company would be turning its attention to its sales force with increased investment in training. Toulouse based Newrest was touting its movement from a company that relied almost solely on airline catering for revenue to a diverse firm specializing in inflight retail as well as catering more scheduled airline service. The company recently expanded its operations in the Pacific by purchasing Sodexho Polynesia. Located in the French Polynesian island of Tahiti, Sodexho has several customers, among them the Council of Papara, the islands Mamao Hospital and University. The last day of this year’s conference saw judges and company officials show off a new Mercury Awards event (see related story) that handed out trophies in each of the categories, with several new designations. Look for more stories on the recent ITCA Conference in upcoming editions of the PAX International e-newsletter. |
