INFLIGHT: DFASS
New inflight retail era beckons as DFASS joint-venture edges closer
The DFASS, SATS and Singapore Airlines Group joint-venture was due to be finalised in the third quarter of the year. Andrew Pentol hears from DFASS Executive Vice Chairman Roberto Graziani.
E
arlier this year, DFASS, SATS and Singapore Airlines Group 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). 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. The share sale, joint-venture and
other definitive agreements were expected to be finalised in the third quarter of 2018. According to DFASS Executive Vice Chairman Roberto Graziani, this remains the case. He tells TRBusiness: “Yes, we are still on course to finalise the agreement. This is a very new arrangement so you can understand the need to be thorough to ensure all partners are satisfied with the final agreement.” “All parties are excited and highly
motivated to bring this to a close in the weeks ahead, signalling a new era for inflight travel retail.”
Omnichannel choices Customers
are demanding
omnichannel shopping choices across all facets of retail with inflight travel retail no different, according to Graziani. “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.” With plenty to look forward
to in 2018, Graziani was pleased with overall business in 2017. He recalls: “Improved assortments and service as well as the maturing
OCTOBER 2018
of our operations in recently acquired locations drove the retail performance. “Our ongoing operational
excellence in inflight continues to drive solid results in a challenging sector.” These challenges are well
documented, emphasises Graziani. “We are proud to be at the forefront of the future of inflight with our new omnichannel
solution
announced in March. “The agreement with Singapore
Airlines is 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 working on the future of the industry.”
Exceeding 2018 targets Currently, DFASS continues to exceed its 2018 sales targets in retail and inflight. It is also pleased with the progress of its growing airport retail portfolio, with particular strengths seen in Newark, Orlando, Fort Lauderdale and Mexico. “We continue to develop our retail
team,” says Graziani, “and have seen great progress with improved assortments and service levels for our customers. “Our amazing main store in
Dallas Fort Worth demonstrates our ability to deliver world class retail environments.” The inflight business remains
‘remarkably resilient’ as DFASS continues innovating across its portfolio while the industry evolves. “Clearly, the partnership we announced with SATS and Singapore Airlines Group demonstrates our leadership in industry evolution,” he says. Speaking of inflight, crew training remains a high priority in the
company’s strategy as it continues to invest in product knowledge and selling skills curriculum. Graziani explains: “We are investing in more intelligent POS devices and enhancing our inflight sales analytics to better target onboard sales opportunities.” In terms of long-standing airline
partners, its mission is to remain innovative and transformational. “We have seen tremendous new
opportunity with long-term partners such as Singapore, Virgin Atlantic and Avianca, where we can design a digital travel experience that benefits the airline and flying passenger in entirely new ways. “We are making a big push in customer analytics, to create an optimal customer experience, drive conversion and ultimately grow ancillary revenues for the airline.” DFASS is also redefining its
business model and corporate and public identity. Further details will be revealed on 17 October… «
“This is a very new arrangement so you can understand the need to be thorough to ensure all partners are satisfied with the final agreement.”
Roberto Graziani, Executive Vice Chairman, DFASS
TRBUSINESS 43
Above: The new store in Dallas demonstrates DFASS’ commitment to delivering world class retail environments.
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