Turkish Airlines to set up catering company

Turkish Airlines plans to invest US$30 million to $40 million to establish its own catering company after the airline cancelled its recent tender in early August.

The Financial Times reports that the airline is looking to save US$8 million to $10 million in the move. The move hinges on a feasibility study that will be submitted to its executive board soon.

If Turkish Airlines moves ahead with the plan, its principle caterer USAS could lose 70 percent of its share in the market, reports the Times. The company has catered Turkish Airlines for the past 15 years.