A dispute over the transfer of a major airline catering contract at London Heathrow has left scores of workers in uncertainty, amid disagreement between service providers over employment responsibilities.

American Airlines terminated its long-standing catering agreement with dnata in early March 2026, prompting significant disruption to onboard food service on its transatlantic routes. The move followed reported operational and hygiene concerns at Heathrow facilities, including allegations of a rodent issue, although the precise cause has not been formally confirmed.

To restore operations, the US carrier entered into a new agreement with Austrian catering group Do & Co, which began supplying meals for Heathrow departures from late April.

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However, the contract transition has triggered a dispute affecting ground-level catering staff. Workers at dnata’s Heston facility, which had supported American Airlines flights, were informed that they would transfer to Do & Co under TUPE (Transfer of Undertakings (Protection of Employment)) regulations when the new provider took over.
According to multiple reports, around 170 employees were expected to move to the incoming contractor. Staff were told to report for transfer on 1 May, but the process failed to complete, with workers instead being told to return home.

The breakdown has resulted in a dispute between dnata and Do & Co over which company holds responsibility for the affected employees. Both firms have indicated differing interpretations of TUPE obligations, and the issue remains unresolved.

Union groups have been heavily involved in the situation, with both Unite and GMB representing different groups of workers. Union representatives have raised concerns about the handling of the transfer and the impact on long-serving staff, many of whom have decades of experience in Heathrow’s catering sector.
Industry sources indicate that the disruption has affected a predominantly long-tenured workforce at the Heston site, with reports suggesting a large proportion of employees had expected continuity of employment under TUPE protections.

Separately, Unite has stated that it is working with alternative catering provider gategourmet regarding potential employment options for a group of its members affected by the dispute.

Expressing gratitude to gategourmet, Unite regional officer Shereen Higginson said: “This has been an extremely complex and unprecedented situation and one which Unite has not encountered previously”.

Higginson added that the situation had been handled ‘extremely poorly’ by the workers’ former employers, and that the union was exploring legal action on the situation.

The situation highlights broader challenges in aviation ground services when contracts are transferred at short notice, particularly where multiple providers contest the legal framework governing workforce transfers.
While American Airlines has restored its catering provision at Heathrow through its new supplier arrangements, the employment dispute continues, with potential legal action under consideration and discussions ongoing between the parties involved.