Philippine Airlines awards five-year DF contract to ISG
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Inflight Sales Group (ISG) founder and CEO Jean-Marcel Rouff has confirmed that the retailer has been awarded a five-year contract to operate the Philippine Airlines (PAL) duty free contract.
This follows the narrowing down of the list of bidders to a final three in mid-2016, led by ISG, DFASS and the Regent Travel Retail Group in partnership with Duty Free Philippines’ ground shops.
As exclusively reported last July, the airline amended the concession length from three to five years with the inclusion of a two-year extension, according to Resty Tizon, Inflight Duty Free Director who handled the process last year.
INTEREST WAS HIGH IN THIS LONG-RUNNING TENDER
At that time she confirmed to TRBusiness that there were additional companies who showed initial interest in the contract, but ultimately decided not to bid. These were Tourvest Duty Free and Lagardère Travel Retail.
According to the airline, the average spend onboard last year was around $2, although the airline has been trying to attract more Chinese passengers.
In the last 18 months it has also acquired several new aircraft, including five Airbus 321 planes and two B777s. This year it is also due to take delivery of another two A321s.
NEW ROUTES – MORE INTERNATIONAL PASSENGERS
On January 1 this year, Philippine Airlines also launched its first international flight from Clark Airport, marking its new policy to try and spread more international connectivity outside the heavily congested capital city of Manila.
A Philippine Airlines Airbus A340.
PAL also launched a second new non-stop service to Singapore from Mactan-Cebu Airport in December 2016.
In addition to the duty free contract to sell goods onboard, PAL has also increased the number of products now available through its Philippine Airlines Boutique online store.
This offers online purchasing of ‘lifestyle merchandise’, including special hotel deals, car rentals, tours and recreation packages, fashion items and gadgets.
Questions & Answers
Q.Which other companies were in the final bidding stage for the duty-free contract?
Which other companies were in the final bidding stage for the duty-free contract?
The final list of bidders included ISG, DFASS, and the Regent Travel Retail Group in partnership with Duty Free Philippines’ ground shops. These three were contenders after an initial narrowing down process in mid-2016.
Q.What was the reason for extending the length of the concession agreement?
What was the reason for extending the length of the concession agreement?
The article states that the concession length was amended from three to five years, with the inclusion of a two-year extension. No specific reason for this change is provided in the text.
Q.Which companies expressed initial interest in the contract but decided not to submit a bid?
Which companies expressed initial interest in the contract but decided not to submit a bid?
Tourvest Duty Free and Lagardère Travel Retail showed initial interest in the contract. However, they ultimately decided not to proceed with a bid for the duty-free concession.
Q.How is Philippine Airlines trying to increase passenger spending onboard its flights?
How is Philippine Airlines trying to increase passenger spending onboard its flights?
Philippine Airlines has acquired several new aircraft and launched new international routes from Clark Airport and Mactan-Cebu. It is also trying to attract more Chinese passengers, who may increase onboard spend.
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