The new agreement, which further builds on ISG and PAL’s existing strategic partnership — which began when PAL first outsourced its supply and marketing in 2011 — will take effect on April 1 2017. In addition to the services ISG already provides, it will also take over management of most elements of the operation from the airline, expanding its Philippine based team. It will also launch a new inflight retail tablet-based POS solution onboard.
ISG’s Detter said: “It is a very exciting development for us to extend our relationship with PAL. ISG is extremely pleased about working with the airline more closely to build on the success we have had together over the last five years. We have a strong partnership, and our new model will offer greater synergies and a better-quality service to PAL’s passengers.”
He added: “The Philippines is a market where we have seen positive sales growth over the past year and one where we believe we can leverage our success further. We will offer stronger and more creative, visible promotions, and some great deals for our customers. While the inflight sector has seen a decline according to industry benchmarks, we have seen success with our strategy here and other markets.”
Philippine Airlines Merchandising & Retail Duty Free Programme manager Kitinka Icalina-Bravo commented: “We are eager to start working with the ISG team to build on our success. PAL is committed to supporting further growth by expanding our efforts with the cabin crew, offering them additional training, recognition and enhanced incentives. Our company recognises our sales force is key to delivering a service that is high quality and genuinely warm and from the heart. My background working within the crew community allows me to understand the challenges they face and advocate for the tools they need to be successful.”
