Travel Retail and Duty Free Business Intelligence    Thursday 23 October 2014

AIRLINES

ISG retains Cathay Pacific and Dragonair inflight retail concession

Published: 09/04/13

Source: ©The Moodie Report

By Martin Moodie and Gavin Lipsith

HONG KONG. Inflight Sales Group, the Hong Kong-based airline concessionaire, has retained its inflight supply and management contract for Cathay Pacific and its subsidiary Dragonair.

The renewed contract will run for four years from 1 July 2013. ISG has operated duty free on board Cathay since 1999, and on Dragonair since 2007.

The appointment follows what the airlines called a ‘robust tendering process’ that included proposals from some of the world’s leading inflight retailers as well as ground operators including DFS.

ISG Managing Director Tony Detter told The Moodie Report: "This has really been the focus of my life for the last year so I am very pleased and relieved the investment has paid off. It seems we have bested every inflight supplier in the business as well as ground operators like DFS, so I couldn't be prouder."

The airlines said: “ISG has demonstrated its leadership position in inflight retail industry with proven track record, expertise and innovation. ISG and Cathay Pacific Group share the same vision and goals in delivering to our customers extraordinary inflight shopping experience whilst innovating on business development initiatives.”

Cathay Pacific commented: “Cathay Pacific hasn’t gone out to market since our bid in 2004, so it was important for us to review all potential partners thoroughly as well as benchmark ourselves against other leading airline shopping programmes.

"We are committed to a continuous improvement in our service offering to passengers and duty free is an important element in our strategy. We are pleased that our current partner, ISG, was able to retain the business. They have proved themselves a creative and reliable partner, and I’m confident we can further leverage their capabilities to help us move forward.”

Dragonair added: “ISG gives seamless support to Dragonair and shows quick response to market changes with a broad range of new products and innovative promotion ideas. We believe that our collaboration will bring a refreshing shopping experience and more exciting exclusive products to passengers. The continual partnership between Cathay Pacific Group and ISG will be an important step in taking our inflight sales business to a new era.”

ISG said: “Aside from the importance of the Cathay Pacific Group to our core business, both Cathay Pacific and Dragonair have been wonderful and innovative partners. We really have the opportunity to work on the cutting edge of inflight shopping with the Cathay Pacific Group, and that is also an important point for us.

"In our new contract, ISG will be offering many additional service components to Cathay Pacific and Dragonair, including supplying all inflight POS and analytics technology through our strategic partner, Guestlogix. We are really looking forward to moving forward and pushing ourselves to create an even better program for both airlines. I want to thank everyone at the Cathay Pacific Group for this opportunity and its confidence in our company.”