Cathay re-tenders inflight supply agreements

20-May-2004

Hong Kong's flag carrier will shortly announce the winners of contracts to supply its duty-free offer

Cathay Pacific expects to announce the results of its tender to supply the airline's inflight duty-free product range in the next three weeks. The shortlist of contenders has been narrowed down to two suppliers, said Inflight Sales and Amenities Manager Anna Cheung. The contracts of the incumbent companies Sky Connection (liquor and tobacco) and Inflight Sales Group Hong Kong (other products) expire in September.

Cathay's decision to outsource inflight supply had proved successful, said Cheung, prompting the carrier to continue. ?It's a supply agreement, so we still have influence in product choice and the catalogue. We're happy with the arrangement. This way we can still influence the brand, and we want to take good care of it. The inflight brochure is part of branding and an important asset of the company.?

Cathay's redesigned inflight catalogue has won widespread praise and April saw record inflight spend levels of HK$12.50 per passenger. In April Cathay also reached record passenger numbers of more than one million for the month. ?We always have high expectations for April, with Easter and Golden Week, but this was the best ever,'' said Cheung.

Meanwhile Cheung will move on from inflight services this summer to head the airline's regional operation in Cebu in the Philippines. She told TRW she was leaving just as the impact of mainland Chinese passengers was being felt in inflight sales. ?Liquor is normally static but with Chinese passenger numbers rising, it is now increasing steadily, particularly cognac,? she said. ?We have high demand now but sadly not enough space for enough trolleys on the aircraft. Space is very tight which restricts how many products we can take onboard.?

Cheung's successor will be Katherine Lo, who will move from Cathay's personnel department.

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