Air travel has gradually become part of our lives as the numbers of air traffic are increasing more than ever before. Certain areas such as Asia Pacific has generated much attention in developing its capacity in both business and leisure travel sectors. The demand for better service also has increased traveller's expectations. The travel segments have not changed much. Male travellers are still the majority although there are increasing numbers of female travellers. Each segment appears to have different needs and wants. It is up to the flight caterer to design meal services as part of airline products to fulfil individual demands. However, the service encounter involves many aspects of service quality which can be examined through the gap model. Like the big US Carriers, Europe's major airlines many of which were already struggling before 9/11 have been crippled by the drop in transatlantic traffic and passengers' reluctance to take to the skies. Belgium's Sabena declared bankruptcy and BA had a significant loss for 2001/02. But not all European carriers are struggling. Ryanair, EasyJet, buzz, bmibaby and Go inspired by the US discounting pioneer Southwest Air concentrate on short-haul routes, and have been almost impervious to the downturn in transatlantic traffic. Moreover, with the world economy heading toward recession, more employers are pushing their executives onto low-cost airlines.