Singapore Airlines to roll out full Omnichannel commerce

DFASS, SATS and Singapore Airlines (SIA) have agreed to establish a joint venture to engage in travel-related retail operations in Singapore starting with the KrisShop and Scootalogue brand names. Under the agreement signed today, SIA intends to acquire 70 per cent of DFASS-SATS Pte Ltd, which currently is equally owned by DFASS (Singapore) and SATS subsidiary Asia Pacific Star Private Limited (APS). DFASS (Singapore) and APS will each retain 15 per cent under the terms of the agreement.

DFASS will be the exclusive supplier of the joint venture while SATS will be in charge to manage on board fulfilment. The joint venture will enter into a management contract with DFASS and SATS to leverage the expertise of the two companies in the specific fields and will operate as a separate Omnichannel business unit with dedicated staff. The technological platform will be developed in conjunction with DFASS partner, AOE, the world’s leading non-aviation digitalization company.

The joint venture will offer to travelers in-flight duty-free and duty-paid goods and pre-order services with on-board and ground-based deliveries, initially under the existing KrisShop and Scootalogue in-flight sales brands but with the aim to expand the scope to other potential interested parties.

DFASS-SATS Pte Ltd currently operates KrisShop for SIA and regional arm SilkAir, as well as the Scootalogue program for SIA’s low-cost subsidiary Scoot, under contract arrangements.

DFASS Executive Vice Chairman, Mr Roberto Graziani said: “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 Omnichannel experience. DFASS is really excited to start this new initiative that, we are convinced, will disrupt the Travel Retail business, together with partners that place customer experience at the heart of their strategy and with which we have built a successful long-term relationship.”

SIA CEO, Mr Goh Choon Phong, added: “This is a win-win-win partnership among three great companies which we expect will help us substantially grow our travel-related retail business. The joint venture will bring together strengths of all three partners – the SIA Group’s customer base of more than 30 million travelers per year and our growing KrisFlyer frequent-flyer program, as well as SATS’ airport and logistics expertise across Asia and DFASS’ extensive supplier network and retail experience.”

Subject to the successful completion of due diligence, various conditions being met and necessary approvals being obtained, the joint venture agreement is expected to be firmed up in the third quarter of 2018.

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