KUALA LUMPUR: Capital A Bhd's catering arm Santan is considering having an in-flight kitchen, given the increasing demand for in-flight meals from other carriers.
Santan's newly-appointed chief executive officer Catherine Goh said the limited number of in-flight caterers in Malaysia presents an opportunity for the company to look into the possibility of catering to other foreign airlines.
"We're looking at different options because of the request we get from different airlines. We need to think of the space needed to cater to the requests, then set up the whole in-flight kitchen operations, and obtaining (the necessary) certificates.
"There are not that many options in the market at the moment. We're evaluating a few," Goh told Business Times in an interview recently.
She said the plan to have an in-flight kitchen may unfold as early as the first quarter of 2025. Santan is in talks with mostly inbound airlines from the Middle East, and Taiwan.
Currently, Santan is providing in-flight meals and retail products, mostly Malaysian brands, on-board AirAsia flights.
The company is also focusing on corporate catering, mainly providing food to companies and hospitals, as well as selling its in-flight meals at retail stores.
Santan's famous Pak Nasser Nasi Lemak, for example, is now available at Zuspresso (M) Sdn Bhd's Zus Coffee outlets, and Petroliam Nasional Bhd's (Petronas) convenience stores.
Goh said the company had to pivot from expanding its own restaurants and building a new concept of retail business, given the changes in consumer behaviour, post the Covid-19 pandemic.
"Now, we work with different brands, such as Zus Coffee, Petronas, and KPJ Healthcare Bhd, to adopt Santan meals. It's a better marketing exposure, as well as a business revenue opportunity," she added.
She also said Santan is replicating the same business model in the Philippines, Thailand, and Indonesia.
Santan's recently-launched product, Santan Coffee Capsules – in collaboration with AirAsia – is gaining popularity in Malaysia.
Goh said the capsules represent a breakthrough in technology, utilising freeze-dried innovation to deliver café-grade coffee experience.
"We continuously try to find a solution on how we can serve good coffee without all the operational constraints (during flight), and we came up with the freeze-dried coffee.
"Made from 100 per cent coffee beans with no additives, the coffee offers a pure and authentic taste that our passengers can enjoy, both during flight, and afterwards, at home," Goh said.
She added that Santan is discussing with foreign airlines from the Middle East, Taiwan, and China to provide the same solution.
She also said Santan has seen a 50 per cent increase in revenue per passenger since the introduction of the Santan Coffee Capsules.
Capital A's first quarter 2024 operating results showed that Santan has sold over 5.1 million units of in-flight products.
Sales of perishable and non-perishable food and beverages climbed 13 per cent year-on-year, exceeding five million units sold during the quarter.
Santan's duty-free and merchandise products saw a seven per cent year-on-year rise, with some 120,000 units sold. It also sold over 42,000 units of frozen meals in the same quarter.
Capital A said the increase in Santan's sales was driven by higher international flight frequencies and passenger volume.