Contract caterer Blue Apple has extended its relationship with budget airline EasyJet and signed its first nil-subsidiary contract as it celebrates 10 years in business.

Blue Apple, set up by Ruston Toms and Brian Allanson in 1998, will run a “retail style” catering facility in EasyJet’s new base at Hangar 89 at Luton Airport, Bedfordshire.

The three-year deal, which will see six catering staff providing services for 650 EasyJet employees under the internally developed Orange Tree brand, is forecast to generate around £1.1m in turnover during the full term.

Although nil-subsidiary contracts see caterers assume much of the risk, taking responsibility for driving sales and any loss, Toms said the partnership approach fostered between the companies since 2000 would stand them in good stead.

Toms said: “Although the perceived wisdom is that this sort of contract doesn’t function with less than 1,000 people on site we’re confident we can make it work and get 70-75% of EasyJet staff using the facility compared with the industry average of 50%.

Fiona Ritsema, EasyJet’s regional facilities manager UK, added: “To make the transition to a nil subsidiary financial model is obviously a huge benefit to us – and being one of Europe’s leading low cost airlines, is in keeping with our philosophy.”

Blue Apple scoops £1.2m-worth of contracts >>

My route to the top: Ruston Toms >>

BaxterStorey wins Virgin Atlantic deal from Compass Group >>

Read more contract catering news here >>

By Chris Druce

E-mail your comments to Chris Druce here.