The demise of domestic airline Ansett Australia is having an enormous impact on its service providers, with the latest casualty being catering group Gate Gourmet.

Administrators told a recent creditors’ meeting that the future for Gate Gourmet was bleak without Ansett and there was little chance of business revival. Around 90% of Gate Gourmet’s business was conducted with the failed airline and the company was forced to appoint Ferrier Hodgson as administrator when it confronted a A$75m (US$36.29m) collapse due to a A$26m exposure to Ansett.

The knock-on effect has gone even further among Gate Gourmet’s 900 suppliers. Georges Providores supplied the company with salad and is now in voluntary administration having slashed 850 jobs. Fresh producers supplying Georges have also had to lay off staff as orders dried up.