Free food flies at Continental While most oth ers charge for meals, Houston carrier has cho sen to take a very different course By BILL H ENSEL JR. Copyright 2008 Houston Chronicle Oc t. 3, 2008, 9:25PM Share icon Print iconEmail ADD TO DEL.ICIO.USDel.icio.us ADD TO DIGGDig g ADD TO TECHNORATITechnorati Yahoo! Buzz Res ources CONTINENTAL CUISINE Each year Houston -based Continental Airlines boards: • 55 m illion sodas and juices • 45 million pound s of ice • 3.5 million quarts of orange ju ice • 30 million bags of pretzels and pean uts Source: Continental Airlines While most carriers are making customers pay for their own meals these days, Continental Airlines ha s stuck with its own recipe. As a result, Co ntinental is the only big U.S. airline that s till includes meals with domestic economy-cla ss fares. It helps that the carrier continue s to operate its own catering business. It ev en sells meals to competitors, including big names like Delta and Northwest, who turn arou nd and resell them to their passengers. On o ther major domestic airlines, snacks in econo my class generally start at about $3, while m eals can range from $6 to $10. Continental's Chelsea Food Services actually is the third- largest caterer in the country. And Continent al — while declining to go into details — said the business unit is a moneymaker, no s mall matter in a year where record fuel price s have waylaid profits in the industry. Cont inental contends it has no plans to change wh at it is doing, believing it helps set it apa rt from rivals. Its food division prepares a lmost 30 million meals yearly, and most of it s business is with other airlines. Chelsea pr epares almost half of them in Houston. The re st come from Chelsea's kitchens in Cleveland and Newark as well as Denver, Honolulu and Lo s Angeles. Despite a power outage caused las t month by Hurricane Ike, Chelsea reported th at it got by with a backup generator and that it lost some food, but not a significant amo unt. Kitchens elsewhere picked up the slack b riefly before Houston was fully back on line Sept. 16, three days after landfall. 24 hour s a day Almost 800 employees work in the Chel sea kitchen on Wright Road at Bush Inter- con tinental Airport. Out of necessity, it operat es 24 hours a day, said Sandra Pineau, the Co ntinental vice president who oversees Chelsea . Pi eau, who began her career working at th e kitchen in Los Angeles, said that by having its own catering arm, Continental is able to closely manage its entire supply chain and f ood operations. "This allows us to maintain a strong focus on delivering a high-quality p roduct to our passengers, including meals at mealtime," she said. The catering operation has grown significantly just over the past de cade. As some airlines have gotten away from preparing their own food, Continental has ste pped in and filled some of the void. "Curren tly, we do about 28 million meals annually, a nd that represents approximately a 50 percent increase from 10 years ago," Continental spo keswoman Kelly Cripe said. Not all the food goes airborne, either. In Denver, Chelsea pro vides baked goods, like muffins, to Starbucks . An unusual case Aviation experts agree tha t Continental benefits from having Chelsea. "What is interesting about the Continental ca se is that most airlines have gotten rid of t heir catering units in their portfolios," avi ation consultant Bob Mann of R.W. Mann & Co. said. "At one point, most had their own inter nal unit." That changed in the wake of 9/11 and increased security measures in and around airports, when most airlines decided to forg o the hassle, Mann said. Instead, they provi de caterers access to their planes and custom ers in exchange for a commission. "The back of the airplane has become a profit center, n ot a cost center, and the revenue benefits fr om back of the cabin cost-subsidize the remai ning costs in the front of the cabin," he sai d. Not all have to pay While big domestic ai rlines charge their budget travelers for food , they still don't in higher classes, where p assengers generally pay higher fares and expe ct more for their money. United Airlines tri ed to take its pay-for-trays strategy aboard certain trans-Atlantic flights this year and was met with an outcry from customers, includ ing frequent fliers. It eventually backed dow n. "There is pretty clear s lit between dome stic and international, and I don't see anyon e trying to charge internationally," Mann sai d. "United got that message." Then there is the biggest low-fare operator in the U.S., So uthwest Airlines, which doesn't provide meals . But it does hand out free snacks — notabl y its famous peanuts, 103.8 million bags in 2 007 alone — along with water, juice and sof t drinks, spokesman Chris Mainz said. bill.h ensel@xxxxxxxxx

[Roger LaFrance <lafrance@xxxxxxxxxxx>]

Free food flies at Continental=0AWhile most others charge for meals, Housto=
n carrier has chosen to take a very different course=0ABy BILL HENSEL JR. C=
opyright 2008 Houston Chronicle=0AOct.  3, 2008,  9:25PM=0AShare  =0A Print=
 =0AEmail =0ADel.icio.us=0ADigg=0ATechnorati=0AYahoo! Buzz =0AResources =0A=
CONTINENTAL CUISINE =0AEach year Houston-based Continental Airlines boards:=
 =0A=E2=80=A2 55 million  sodas and juices =0A=E2=80=A2 45 million  pounds =
of ice =0A=E2=80=A2 3.5 million  quarts of orange juice =0A=E2=80=A2 30 mil=
lion  bags of pretzels and peanuts =0ASource: Continental Airlines =0AWhile=
 most carriers are making customers pay for their own meals these days, Con=
tinental Airlines has stuck with its own recipe.=0AAs a result, Continental=
 is the only big U.S. airline that still includes meals with domestic econo=
my-class fares.=0AIt helps that the carrier continues to operate its own ca=
tering=0Abusiness. It even sells meals to competitors, including big names =
like=0ADelta and Northwest, who turn around and resell them to their=0Apass=
engers.=0AOn other major domestic airlines, snacks in economy class general=
ly start at about $3, while meals can range from $6 to $10.=0AContinental's=
 Chelsea Food Services actually is the third-largest=0Acaterer in the count=
ry. And Continental =E2=80=94 while declining to go into=0Adetails =E2=80=
=94 said the business unit is a moneymaker, no small matter in a=0Ayear whe=
re record fuel prices have waylaid profits in the industry.=0AContinental c=
ontends it has no plans to change what it is doing, believing it helps set =
it apart from rivals.=0AIts food division prepares almost 30 million meals =
yearly, and most=0Aof its business is with other airlines. Chelsea prepares=
 almost half of=0Athem in Houston. The rest come from Chelsea's kitchens in=
 Cleveland and=0ANewark as well as Denver, Honolulu and Los Angeles.=0ADesp=
ite a power outage caused last month by Hurricane Ike, Chelsea=0Areported t=
hat it got by with a backup generator and that it lost some=0Afood, but not=
 a significant amount. Kitchens elsewhere picked up the=0Aslack briefly bef=
ore Houston was fully back on line Sept. 16, three=0Adays after landfall.=
=0A24 hours a dayAlmost 800 employees work in the Chelsea kitchen on Wright=
 Road at Bush Inter-=0Acontinental=0AAirport. Out of necessity, it operates=
 24 hours a day, said Sandra=0APineau, the Continental vice president who o=
versees Chelsea. =0APineau, who began her career working at the kitchen in =
Los Angeles,=0Asaid that by having its own catering arm, Continental is abl=
e to=0Aclosely manage its entire supply chain and food operations.=0A"This =
allows us to maintain a strong focus on delivering a=0Ahigh-quality product=
 to our passengers, including meals at mealtime,"=0Ashe said.=0AThe caterin=
g operation has grown significantly just over the past=0Adecade. As some ai=
rlines have gotten away from preparing their own=0Afood, Continental has st=
epped in and filled some of the void.=0A"Currently, we do about 28 million =
meals annually, and that=0Arepresents approximately a 50 percent increase f=
rom 10 years ago,"=0AContinental spokeswoman Kelly Cripe said.=0ANot all th=
e food goes airborne, either. In Denver, Chelsea provides baked goods, like=
 muffins, to Starbucks.=0AAn unusual caseAviation experts agree that Contin=
ental benefits from having Chelsea. =0A"What is interesting about the Conti=
nental case is that most=0Aairlines have gotten rid of their catering units=
 in their portfolios,"=0Aaviation consultant Bob Mann of R.W. Mann & Co. sa=
id. "At one=0Apoint, most had their own internal unit."=0AThat changed in t=
he wake of 9/11 and increased security measures in=0Aand around airports, w=
hen most airlines decided to forgo the hassle,=0AMann said.=0AInstead, they=
 provide caterers access to their planes and customers in exchange for a co=
mmission.=0A"The back of the airplane has become a profit center, not a cos=
t=0Acenter, and the revenue benefits from back of the cabin cost-subsidize=
=0Athe remaining costs in the front of the cabin," he said.=0ANot all have =
to payWhile big domestic airlines charge=0Atheir budget travelers for food,=
 they still don't in higher classes,=0Awhere passengers generally pay highe=
r fares and expect more for their=0Amoney. =0AUnited Airlines tried to take=
 its pay-for-trays strategy aboard=0Acertain trans-Atlantic flights this ye=
ar and was met with an outcry=0Afrom customers, including frequent fliers. =
It eventually backed down.=0A"There is pretty clear split between domestic =
and international, and=0AI don't see anyone trying to charge internationall=
y," Mann said.=0A"United got that message."=0AThen there is the biggest low=
-fare operator in the U.S., Southwest=0AAirlines, which doesn't provide mea=
ls. But it does hand out free snacks=0A=E2=80=94 notably its famous peanuts=
, 103.8 million bags in 2007 alone =E2=80=94 along=0Awith water, juice and =
soft drinks, spokesman Chris Mainz said.=0Abill.hensel@xxxxxxxxx

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