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MIAL to fight Taj, Oberoi in inflight catering

Airport operator to create separate facility at its premises; invites bids for concessionaire for setting up and running the unit

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Expanding its business horizon, Mumbai International Airport Ltd (MIAL), which operates the city airport, has now decided to create a separate in-flight catering facility within its premises.

The company on Friday announced seeking a concessionaire for developing and maintaining the facility and has issued a Request for Qualification (RFQ) for this.

According to the officials, at present in-flight catering services at Chhatrapati Shivaji International Airport (CSIA) are being offered by Skygourmet Catering Private Ltd, TajSATS Air Catering Ltd, Narangs International Hotels Private Ltd, Chefair Flight Catering (Hotel Corporation of India) and Oberoi Flights Services, a unit of EIH.

According to aviation industry analysts, the development is on expected lines as the global in-flight catering market is estimated to be over $17 billion, which is expected to increase to $18 billion by year 2020. India, which is poised to become third largest aviation market by the year 2020, offers a sizeable growth opportunity in the segment.

CSIA handled over 41.6 million passengers during 2015-16, though the management had anticipated 40 million passenger movements only in 2018-19.

"MIAL intends to grant a concession to a party selected through a competitive bidding process to design, construct, develop, finance, operate, maintain and manage an in-flight kitchen facility on a plot measuring 8,337 sq metre as demarcated by MIAL for providing in-flight catering services to airlines at CSIA" reads the RFQ document posted on airport's website. Apart from other related criteria, the documents claim that the applicant should have during the financial year ended March 31, 2016, catered as an in-flight caterer and supplied at least 25000 meals per day.

Also, no applicant and concessionaire member shall be an Indian carrier or Indian airport operator.

MIAL is a joint venture company between GVK-led consortium (74% stake) and Airports Authority of India (AAI) (26%).

Earlier this month, riding high on e-commerce growth, MIAL opened a new domestic cargo terminal near Western Express Highway in Vile Parle. It expect 7-8% growth in business annually. At present, e-commerce logistics form about 75-80 % of the total domestic cargo business of MIAL.

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