Sponsored by
AIRLINE NEWS Arrivals shop threat to inflight sales?
There was more than passing interest in the continued welfare of inflight duty free programmes on airlines flying out of Moscow’s three main airports of Sheremetyevo, Domodedovo and Vnukovo at last April’s SKYSERVICE 2017 Forum. The morning-long first day conference
event organised by Aeroflot and its majority- owned catering company Aeromar found itself drifting onto the subject of airport duty free arrivals shops at one point – with one or two delegates asking what impact this change in legislation in the third quarter – or early 2018 – might have on inflight duty free sales? This follows the introduction of last
December’s new customs code which was signed by the Eurasian Economic Union, which agreed to the introduction of this new facility for travellers in Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan. Some delegates expressed their clear
concern that duty free arrivals shops might cannibalise inflight sales, if not
disincentivise passengers from buying duty free altogether onboard airlines. [See pages 26-27]. As a conference speaker at this event,
TRBusiness Editorial Director Doug Newhouse took the audience through the way that duty free arrivals shops operate in other countries and how airlines try to compete with them, at the same time as pointing out that the penetration levels are not always that good. Newhouse also pointed to the existing
efforts being made onboard Aeroflot by its duty free concessionaire (the Inflight Sales Group) which is already differentiating its onboard inflight offer by offering a mostly
The specialist Dublin-based inflight Retail inMotion (RiM) company appointed Stefan Patermann as its new CEO last month as its long time founder Dr. Joe Elias stepped down just as the company celebrated its latest expansion into the US market in Texas. In his new position, Patermann will now
Management change as RiM expands Meanwhile, the grand opening of
RiM’s new Texan office also coincided with a meeting of the company’s Global Onboard Retail team who all flew in for the strategy meeting. This followed an earlier tribute to
oversee all the business activities of Retail inMotion, plus all the other onboard retail efforts of the LSG Group which fall under the company’s brand umbrella. The promotion follows Patermann’s
arrival at the company nearly four years ago, when he first began leading the RiM/LSG integration after the LSG Group acquired the first shares in the company.
company founder Elias from Erdmann Rauer, the CEO of LSG Group. He said: “Joe’s unique problem solving and innovative approach to business has resulted in the foundation of RiM’s unique culture and has totally revolutionised the aviation onboard retail industry. Joe might be stepping back as CEO, but we are delighted that he will continue on with the LSG Group in a retail consulting and advisory role.”
Will BA tender duty free this year?
A number of inflight concessionaire companies are beginning to look gently in the direction of the inflight duty free contract at British Airways (BA) considering it was put out to tender more than a year ahead of its expiry date the last time around. Needless to say the contract is currently
held by Tourvest Inflight Retail Services after it was extended separately when BA also awarded the airline’s relatively new short-haul food and beverage business to the company last September. The BA programme is often held up as a
prestige account by many suppliers and the airline itself has made no secret in the past that it needs a partner who can handle the sheer scale of its business. This was the reason it awarded Tourvest
its F&B and duty free contracts last year, according to Troy Warfield, BA Director of Customer Experience.
different product range of products to many that are currently available through duty free ground shops. Newhouse also pointed out that Russian
airlines also benefit in a small way, since they do not sell duty free liquor onboard, so this should not be a competitive issue for them in future.
(LtoR) Erdmann Rauer, CEO LSG Group; Dr. Joe Elias, Founder Retail inMotion; Stefan Patermann, CEO Retail inMotion.
JUNE 2017 TRAVEL RETAIL BUSINESS 11
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78
