Zafar Siamwala: “Diversification is good only if there is no compromise on quality…”

EIH Flight Services Mauritius is the inflight catering operations segment of the Oberoi Group. It is directed by Zafar Siamwala who is also the Chief Operating Officer of Oberoi Flight and Airport Services. He tells us more on the challenges and changing trends of the inflight catering industry in the interview below.

BUSINESSMAG. How is the Mauritian branch of EIH Flight Services Ltd business doing three years after its inception?

The Mauritian branch of EIH Flight Services Ltd was incorporated with a long-term projected capacity of 10,000 meals per day. It is expected to achieve this target in airline catering over the next five years.

A new venture has a gestation period before it is profitable, unless it is in a monopoly situation. In view of the same theory, we were expecting to make business losses during the first three years of our operations.

We see improvement in operational profitability cropping up during the next three years and expect to be profitable in our sixth year of operations in Mauritius. Our business growth has been improving over the last 12 months with new clients being added to the business. The contract for management of the Air Mauritius Lounge was a prestigious addition to our business, as we have gained expertise in the lounge business in various airports in India.

Another prestigious business addition was the catering contract for South African Airways. We see further growth and profitability coming our way with the opening of the new airport, as more airlines are expected to operate scheduled flights here.

BUSINESSMAG. You are the second biggest operator in the local inflight services industry. What are the challenges you have come across while carving a place for yourself in the business?

Any new business venture has its forecasted challenges. Inflight catering business is very technical, with systematic business operations, and requires trained manpower. Sourcing local trained manpower was a challenge, as this business was restricted on the island with not many flight catering units in operation. The other challenges faced have been mainly in the field of resourcing quality raw materials and operating costs which are higher. For quality raw materials, we have to rely upon the imported products and, sometimes, availability and lead time for procurement of the product can be challenging in developing new menu items.

BUSINESSMAG. Are you planning to market your services to other airlines?

Definitely. We have approached several carriers and are quite hopeful of extending our business relations. It is going to be a challenge but we have plans in place which, as I mentioned, have yielded good results over the last 12 months, with substantial growth in our business. I am quite confident that we will attract a wider clientele in the near future.

BUSINESSMAG. What is the strategy to further develop the business in the years to come? Are you considering expanding your business in the local catering sector?

We plan to further grow the inflight catering business through tie-ups with other carriers currently operating in Mauritius and will look at enhanced opportunities for the outside catering business in Mauritius as well. We have a facility here with all the state-of-the-art equipment. Several guests from airline companies who have visited the facility are truly impressed with our facility and are of the opinion that it is definitely one of the best catering units around the world in its category of meal production. I believe that, with such a beautiful kitchen and our over 50 years’ experience in this field, it will definitely go a long way in building our business relations with other airlines operating into the island.

We intend to look at each opportunity as and when it arises. Diversification is good only if there is no compromise on quality and the core business concept. Our company is quite focused on that and as we get new opportunities in the local catering sector, we will look into the same.

BUSINESSMAG. Airlines around the world have been subject to a lot of financial difficulties over the last few years. How has this impacted your business?

The airline industry has been going through a very bad phase since the past few years. Our business is dependent on airlines’ profitability. We have seen continued improvement from most of our clients towards an improved product onboard and per corresponding spend per passenger. In most cases, airlines have reworked their business model. Moreover, with the inclusion of fuel efficient planes, airlines are looking to improve the travelling experience of passengers. The challenges of 2010-2012 for airlines have reduced considerably.

BUSINESSMAG. Some airlines have a strict policy on the weight of goods in relation to the increasing price of airline fuel. Have you had to review your product in relation to this?

Our product is mainly food, normally comprising 300 to 500 grams per passenger. We have seen no reduction in this with respect to weight and fuel cost from our clients. Each airline on its part continues to achieve weight reduction by improved equipment, lighter trolleys, chinaware, cutlery and seats. 

BUSINESSMAG. There is an increasing wish from operators relying on air access to run their businesses for an open sky policy for Mauritius. What are your views on this?

Open skies would definitely improve our business and create opportunity for employment, increase the volume in tourism and provide better connectivity. With the opening of the new airport, Mauritius joins the rungs of world class airports with an increased capacity to handle passengers per hour.

BUSINESSMAG. Several travellers are also concerned on the safety of ‘airplane food’. What is your organisation doing to live up to safety and health concerns of the services provided?

Food safety is of prime importance for us and we are certified by BSI for ISO 22000 and HACCP certified. All our processes and production are duly documen-ted for traceability. As mentioned previously, the whole flight cate-ring operations is a very technical and systematic process, and the same rules are to be adhered to each and every time. We are subjected to audits by airlines representatives wherein our processes are checked to ensure that food supplied on the plane is safe.