Originally Posted by
dj_jay_smith
You misunderstand what I mean. Of course your sums are right, and 100 million euros is a big saving. But my point is, instead of charging 400 Euros for flight x of which 5 euros (or whatever they spend) is spent on catering, then instead charge 405 euros and spend 10 euros on catering. I would not choose my airline based on a difference of 10 euros/return flight, and I doubt many would.
I am however against charging 5 euros extra as an add-on service!
Of course it's probably more likely that they charge 420 euros and spend 2 euro on catering.

The problem is that the pricing of tickets is more complicated and needs to incorporate competitive fares of other carriers, thus 399 vs. 405 might make a difference.
On the other hand, I fully agree. On a recent BA intra-Europe flight i got a very nice Indian wrap in a not too bad looking paper-based package in Y. On my way back on LH, I got a very bad tasting, very cheaply packed (those see-through plastic packages you get sandwiches in at any given gas station) of white wheat bread...