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KK Lee

MH inflight duty free

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I was told MH has out sourced inflight duty free to a Hong Kong company starting 1st September. Out sourcing should reduce profit margin, could only mean MH was left with load of dead stock or pilferage was high for out sourcing to worthwhile or the decision was made at the highest level.

 

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I've always wonder if inflight duty free sales really generate enough profits to justify sustaining that practice. If they just get rid of the trolleys products out of the aircraft that should be some savings in fuel over the long run.

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Delta ceases duty free sales today (7/ Aug)

 

Delta could not provide immediate comment about the impact of its decision on revenues, and the expected fuel savings associated with removing duty free trolleys. However, RGN can reveal that, based on Delta’s records from October 2012 to September 2013, the duty free commission amount paid by DFASS during that period averaged to be approximately $10 per month per flight attendant, with 65% of flight attendants earning less than $100 per year in commission. These meagre sums suggest that Delta was not moving a significant volume of duty free goods.

 

http://www.runwaygirlnetwork.com/2014/08/07/update-delta-ceases-duty-free-sales-today/

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It seems current MH inflight duty free collection doesn't have alcohols or cigarettes. With two of the most popular items omitted, doubt the effort is worth while.

 

If the duty free selection is an indication of MH business direction, it will be tough for MH to be profitable.

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