SINGAPORE. A solid, interactive afternoon session was the highlight of the TFWA-organised Gate One Conference in Singapore today after an uneven morning session.
In a session on maximising revenue across the travel chain, low-cost carrier Tiger Airways CEO Tony Davis delivered a comlelling address. He offered the view that airlines have no business carrying heavy carts full of duty free goods on board. Instead, he said, he would prefer to strike deals with airports and their retailers, promote their business on the ground and take a slice of the revenue.
Registration & Opening remarks
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(Left-right) Registration begins at Suntec; TFWA President Erik Juul-Mortensen gets the first session under way | |
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News Broadcaster Kavita Maharaj, moderating the event along with CAPA Executive Chairman Peter Harbison (right), keeps an eye on proceedings | |
The airport scene in 2007: how do airports differ from region to region?
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(Left-right) Beijing Capital International Airport Market Exploitation Director Foster Fu; former General Authority of Civil Aviation Saudi Arabia Business Development Manager Mohamad Nada |
From hubs to cities: the ultimate airport experience
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(Left-right) Hong Kong International Airport Retail Planning and Development Manager Amy Choi; Dublin Airport Authority Capital Programmes Director Mark Foley | |
“I don’t see us competing with airport for passengers’ spend,” he said. “I see their business as complementary. Airlines currently heavy carts that become an additional cost given the high price of fuel. Why can’t this translate into a sales opportunity on the ground? Airport shops stock the inventory, but passengers have the luxury of time in the air, when they can browse a brochure and order products through us, which they could then pick up on the ground. I’m not a retail expert, but I can give the retailers who are access to my passengers, and we can both gain from the arrangement.”
His comments provoked a powerful reaction – and strong agreement – among a number of airports. The session included contributions from SSP Vice President Business Development Lars Croné, Dufry Eurasia COO René Riedi, Changi Airports International Senior Vice President Global Operations Eugene Gan, Apex Business Development Partners Consultant Frank O’Donovan and Eraman CEO Umar Bustamam.
Airport marketing mix: how will/must it change?
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(Left-right) Eraman Malaysia Head of Corporate Planning and Business Development Ashraff Ali; Aeroports de Paris Marketing, Retail and Communications Director Pascal Bourgue | |
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(Left-right) McNally Design Director of Business Development Noel Derby; British American Tobacco General Manager Asia Pacific Travel Retail Andrew McLeod | |
The final session of the day covered the continuing threat to the business of aviation security measures. Refreshingly the audience heard the vital US viewpoint, from Transportation Security Administration Representative Armen Sahagian who said: “Our goal is not to take your business away. Harmonisation of the new measures is critical, and it will come, but we have 450 airports in the US so it will take time.”
Airport strategies in the new aviation environment
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(Left-right) Eraman CEO Umar Bustamam; SSP VP International Business Development Lars Croné | |
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(Left-right) Dufry Eurasia COO René Riedi; Changi Airports International Senior VP Global Operations Eugene Gan | |
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(Left-right) Tiger Airways President and CEO Tony Davis; Apex Business Development Partners Consultant Frank O’Donovan | |
Gateway Duty Free Managing Director Tom Thomas illustrated the scale of the problem for his off-airport business in Australia. “Liquids sales represent 30-40% of profits for many small off-airport duty free retailers. Currently we are working under a temporary arrangement whereby LAGs purchases can be packed into hold luggage, but that is not a long-term solution and it could change almost overnight. So there are many small independent companies who face losing their livelihoods if a solution is not found.”
ETRC President Frank O’Connell outlined the alarming level of LAGs confiscations, which are running at 2,500 litres a day a Frankfurt Airport, 1,000 litres at Amsterdam Schiphol, 900 litres at Madrid Barajas and around €22,000 a day in product at Zürich Airport, he said.
But he said that the pragmatic approach of the European Commission, which had dropped its requirement to strike bi-lateral agreements with third countries, could pave the way for a solution, hopefully before the summer peak season in the region.
Other contributions in the session came from Heineken International Global Account Manager Airports – Worldwide Melvin Broekaart and Civil Aviation Authority of Singapore Senior Director Lye Teck Tan.
Managing risk: anticipating change and how to prepare for it – security focus
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(Left-right) ETRC President Frank O’Connell; CAAS Senior Director Lye Teck Tan | |
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(Left-right) Gateway Duty Free Managing Director and Duty Free Security Company President Tom Thomas; Heineken International Global Account Manager Airports – Worldwide Melvin Broekaart | |
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Gebr Heinemann Chairman of the Advisory Board Harry Diehl grabs the attention of the photographer’s lens | |
In the morning, a session on airports region by region included Beijing Capital International Airport Market Exploitation Director Foster Fu and former Saudi Arabia General Authority of Civil Aviation Business Development Manager Mohamad Nada.
That was followed by a session on Airport Cities, in which Hong Kong International Airport Retail Planning & Development Director Amy Choi and Dublin Airport Authority Mark Foley spoke.
In the pre-lunch session, Eraman Malaysia Head of Corporate Planning & Business Development Ashraff Ali, Aéroports de Paris Marketing, Retail & Communications Director Pascal Bourgue, Noel Derby and British-American Tobacco General Manager Asia Pacific Travel Retail Andrew McLeod discussed the airport marketing mix.
The TFWA Asia Pacific Conference and opening day of the exhibition take place on Tuesday. We’ll feature pictorial highlights of the entire event during the week.
