Britannia deal helps Alpha weather storm

Trading at flight catering and airport shop company Alpha Airports remains tough as the airline and travel industry continues to recover from the effects of 11 September, but an increase in business from Britannia Airways has helped.

Chairman Rodney Galpin, speaking at the group's annual general meeting last week, said that trading in the first few months since 31 January had been in line with expectations.

In the first quarter of the group's financial year, meals sold in its UK flight services division were down by 8% on a like-for-like basis compared with the same period last year.

Galpin added that as the markets in which Alpha operates were still recovering from the effects of 11 September, he expected first-half performance to be impacted but was confident the group's expectations for the full year would be achieved.

Alpha also announced that it had been awarded a three-year, £17m-per-year contract to provide catering services to the newly formed BA CitiExpress, British Airways' regional airline, from 14 kitchens around the UK and Ireland.

The group will increase its supply of meals to Britannia Airways by 49% after Britannia asked Alpha to supply food for the return trips as well as the outward leg on its European flights.

by Samantha McClary