Singapore’s national carrier Singapore Airlines (SIA) will acquire 70 per cent stake in the in-flight sales company DFASS SATS Pte Ltd, a joint venture owned by ground handler Sats and duty-free retailer DFASS, in a bid by the airline to offer travel-related retail operations in Singapore.
Financial details of the deal were not disclosed. However, in an exchange listing on Thursday, the airline said, its investment in the 70 per cent share in the proposed JV will be funded through its internal resources.
DFASS SATS Pte is currently equally owned by DFASS (Singapore) and SATS subsidiary SATS Asia-Pacific Star Pte Ltd (APS). However, following the deal, DFASS (Singapore) and APS will each retain 15 per cent under the terms of the agreement, the announcement said.
“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 omni-channel business unit with dedicated staff. The technological platform will be developed in conjunction with DFASS exclusive partner, AOE, the world’s leading non-aviation digitalisation company,” SIA said.
DFASS SATS Pte currently operates KrisShop for the national airline and regional arm SilkAir, as well as the Scootalogue programme for its low-cost subsidiary Scoot, under contract arrangements.
The deal, subject to conditions, is expected to be firmed up in the third quarter of 2018.
This is the second such partnership within a week for the airline that signed three long-term contracts with American conglomerate Honeywell to help improve the operational capabilities for itself, SilkAir and Scoot carriers.