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AIRLINE NEWS DFASS, SATS & SIA embrace ‘new inflight era’
The new joint venture between DFASS Group, SATS and Singapore Airlines (SIA) is the first of hopefully ‘several similiar contracts’, according to DFASS Executive Vice-Chairman Roberto Graziani. Earlier this year, the trio agreed to
establish a joint venture to engage in travel retail operations starting with programmes on Singapore Airlines (KrisShop) and its low-cost subsidiary carrier Scoot (Scootalogue). Graziani told TRBusiness: “All parties are
excited and highly motivated. “This will be the first of what we hope to
be several similar contracts. We continue to work with all our airline partners to maximise the business and customer experience while we work on the future of the industry. “Our customer would like to be able to
shop seamlessly wherever they are. We know they enjoy the assortments and the value we offer. “Our solution seeks to enable them to access our platform wherever and
whenever they choose to shop.” The joint venture will offer travellers
inflight duty free and duty paid goods and pre-order services with on board and ground-based deliveries, initially under the existing KrisShop and Scootalogue inflight sales brands. Technology will be developed in
conjunction with AOE, a leading non- aviation digitalisation company and exclusive DFASS partner. The JV, announced earlier this year, stipulates a Points of Agreement under
which SIA will acquire 70% of DFASS- SATS Pte. Ltd., currently equally owned by DFASS (Singapore) and SATS subsidiary Asia-Pacific Star Pte. Ltd. (APS). DFASS (Singapore) and APS will each retain 15% under the terms of the agreement. The share sale, JV and other definitive
agreements were understood to have been finalised in the third quarter of 2018. Graziani was pleased with overall
business in 2017, with retail and inflight exceeding sales and EBITDA targets.
Alpha LSG reports onboard duty free ‘resurgence’
Alpha LSG says it has witnessed a ‘resurgence’ in its inflight boutique and core duty free categories this year. In an exclusive interview this issue (see
p45) Inflight Retail & Managed Services Director Alan Hayes says strong passenger numbers in its airline portfolio has driven healthy organic sales growth. “The traditional categories remain strong
like liquor and tobacco, but growth in the main is largely down to the innovative merchandising work we have put in place – altering loading levels of key brands on different routes and departure bases to properly reflect the demands and tastes against these differing demographics,” he told TRBusiness. Sales of boutique products such as
jewellery, cosmetics and gifts & accessories are also encouraging after a ‘tough’ couple of years, he goes on to say. “In general, the difference across all of
these boutique categories over the past five to 10 years is quite staggering – with many brands turning their back on the in- flight channel, missing the shop window opportunity to promote and elevate their brand.
OCTOBER 2018
leisure carrier Thomas Cook, Tui Airways, Japan Airlines, Lufthansa, Malaysian Airlines and many others, providing a spectrum of services from merchandising provision to full inflight retail management. “For the remainder of 2018, the signs are
good,” added Hayes. “Trading is strong, demand for air travel is relatively strong and we’re well positioned to capitalise on this demand though the strategic retailing drivers we have in place. “But we can’t stand still. If brands
“That’s a real shame. So we’ve had to innovate in these areas by introducing some new and exciting brands into the retail space, bringing new suppliers into the industry to try and re-capture some of the sales. In some categories the success has been phenomenal.” Digitalisation remains a prominent part
of the firm’s crew engagement strategy, while digital marketing and social media has heightened customer awareness by allowing tailored pre-departure advertising to stimulate inflight sales. The predominantly UK-based inflight
catering, onboard retail and logistics firm boasts an airline portfolio including major
continue to turn their back on the inflight retail market, then this will be a huge hurdle for the sector over the coming years, and as an industry we’ve got to collectively work doubly hard at convincing these brands to stay and support the market as well as look for new and niche products, services and brands to keep the revival momentum going.”
www.scorpioworldwide.com TRBUSINESS 15
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