Singapore Airlines has appointed DFASS Singapore as concessionaire, to take over KrisShop, the airline’s inflight duty free sales. The transition will be completed by the first quarter of 2007.
Singapore Airlines customers will benefit from the new partnership, through greater choice and variety when making duty free purchases inflight. DFASS’ experience in market research means the supply and pricing of items should better meet customers’ demands.
The move to appoint DFASS as the concessionaire is consistent with Singapore Airlines’ objective of focusing on its core business, allowing those with specialized skills to drive inflight sales.
The collaboration is expected to result in some incremental revenue benefits for the airline. Singapore Airlines will also no longer need to hold inventory of inflight sales items. This is on top of the other cost advantages that the airline will gain as a result of the appointment.
The appointment of DFASS has resulted in some staff changes. Six existing staff will be deployed to other business units within Singapore Airlines. 19 staff have been paid retrenchment benefits in accordance with the Collective Agreement; 17 of whom have accepted offers of employment from DFASS.