Singapore Airlines has appointed DFASS Singapore Pte Ltd (DFASS) 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, which will take the inflight shopping experience to greater heights. They will have greater choice and variety when they make duty-free purchases inflight. DFASS' experience in market research means the supply and pricing of items will 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.

The decision to outsource KrisShop, was not an easy one, and was reached only after very careful deliberations. Singapore Airlines closely weighed the costs against the benefits and studied the implications carefully. The company will do all it can to ensure that the transition is a smooth one for its people.

Going forward, Singapore Airlines is confident that appointing DFASS, as the concessionaire, will provide improved service standards and product variety to KrisShop customers, while allowing the company to benefit from cost efficiencies to stay lean and nimble.