Alpha Airports set to bid for Qantas catering business

ALPHA AIRPORTS may consider making a bid for the in-flight catering arm of Qantas, the Australian state airline which is due to be privatised next year.

The business turns over about Adollars 250m (pounds 117m) a year, almost half the turnover of all Alpha's in-flight catering operations.

Alpha would almost certainly need an Australian partner to stand a chance of success. The most likely is Connat Flight Services, the largest independent operator in Australia, which already has some contracts with Qantas.

Alpha moved into the Australian market in June by forming a joint venture company with Connat. The link-up was designed to tap the fast-growing airline business in the Pacific rim.

Paul Harrison, chief executive of Alpha, which was floated on the stock market in February, said: 'The link with Connat puts us in a strong position to go for opportunities like Qantas.' Australia is regarded as an international airline market in its own right.

Alpha yesterday matched City expectations with a 6.6 per cent rise to pounds 11.3m in pre-tax profits for the six months to 31 July. It is paying its first interim dividend since flotation, 1.6p.

The flight services side made operating profits of pounds 8.4m, up from pounds 8.1m. Profits from retail trading in airports were steady at pounds 3.3m. Analysts expect full-year group taxable profits of pounds 22m-pounds 23m.