Singapore Airlines sets up travel retail joint venture

Singapore Airlines (SIA) have announced a travel retail joint venture agreement leveraging on the expertise of the two partners in their specific fields. SIA intends to acquire 70% of DFASS SATS Pte Ltd, an equal partnership between DFASS (Singapore) and SATS Asia-Pacific Star Pte Ltd (APS). APS is a subsidiary of SATS, a leading provider of gateway services and food solutions in the region.

Travel retail benefits for travellers

Under the terms of the agreement

• The joint venture will transform SIA’s ‘KrisShop’ and Scoot’s ‘Scootalogue’ programmes into omni-channel e-commerce platforms
• SIA to hold 70% stake; DFASS and SATS to each hold 15%
• DFASS is the exclusive supplier of the travel retail joint venture
• SATS will manage on-board fulfillment

What this means for travellers

DFASS SATS Pte Ltd currently works with SIA under contract arrangements to operate 

• KrisShop for SIA and their regional arm SilkAir
• Scootalogue programme for SIA’s low-cost subsidiary Scoot,

The joint venture will offer:

• in-flight duty-free and duty-paid goods
• pre-order services with on-board
• ground-based deliveries

operated under the existing KrisShop and Scootalogue in-flight sales brands, with plans for future expansion.

….. This is a win-win-win partnership among three great companies which we expect will help us substantially grow our travel-related retail business. Goh Choon Phong, SIA CEO

He also made reference to the SIA Group’s wide customer base of over 30 million travellers per year. Other strong positives are

• the growing KrisFlyer frequent-flyer programme
• SATS’ airport and logistics expertise across Asia
• DFASS’ extensive supplier network and retail experience.

Officials of the two other partners were equally upbeat.

….. Being a company which has been setting the pace in the Inflight Retail business for the last 25 years, we are very looking forward to transforming the current model into a modern, powerful and consumer oriented omni-channel experience. Roberto Graziani, DFASS Executive Vice Chairman

Both spoke about the positive disruption to the Travel Retail business and the benefits it would bring to travellers.

….. This new venture brings our longstanding partnership into the digital age. Passengers will benefit from relevant, exclusive shopping opportunities, customised for them personally, and integrated seamlessly into their overall customer experience. Alex Hungate, President and CEO of SATS

The agreement is expected in the third quarter of 2018 subject to successful completion of due diligence and other requirements.