Jeju Air Selected as In-flight Duty-Free Shop Operator... Operations to Start This December
Annual Sales Target of 16 Billion KRW... Plans to Expand Global In-flight Duty-Free Business
(From left) Kim Junam, Head of Korea Business Division at Lotte Duty Free, and Ko Kyungpyo, Head of Commercial Division at Jeju Air, are taking a commemorative photo after signing the in-flight duty-free shop operation contract on the 28th. Photo by Lotte Duty Free.
[Asia Economy Reporter Yuri Kim] Lotte Duty Free announced on the 29th that it has acquired the in-flight duty-free business rights of Jeju Air, a domestic low-cost carrier (LCC). At the contract signing ceremony held the day before, Kim Junam, Head of Lotte Duty Free Korea Business Division, and Go Kyungpyo, Head of Jeju Air Commercial Division, attended as representatives of both companies. Lotte Duty Free will begin operating Jeju Air's in-flight duty-free shop on December 1. The contract period is up to seven years from the signing date.
As the world's second-largest duty-free operator, Lotte Duty Free plans to significantly strengthen liquor brands such as whiskey and wine, which are preferred by domestic customers, based on its product (MD) sourcing capabilities. They also plan to offer various categories including cosmetics, tobacco, accessories, and health supplements at reasonable prices. Exclusive products such as limited-edition whiskey will be supplied to the in-flight duty-free shop to provide a unique duty-free shopping experience.
Lotte Duty Free expects to generate an average annual sales of 16 billion KRW through this Jeju Air in-flight duty-free business. Based on its experience operating Jeju Air's in-flight duty-free shop, Lotte Duty Free plans to expand its business globally by acquiring in-flight duty-free business rights from large foreign carriers (FSC) in the future, thereby securing new revenue sources.
Jeju Air is the number one LCC operator in Korea and is expected to reach a cumulative passenger count of 100 million in the second half of next year. It operates a total of 38 aircraft. It flies to Japan, Southeast Asia, the United States' Guam, Saipan, Singapore, and also launched a new route to Mongolia in June. On the 12th, it announced plans to aggressively expand its business by adding 40 next-generation aircraft within five years.
Lee Gap, CEO of Lotte Duty Free, said, "We have acquired the in-flight duty-free business rights of Jeju Air at a time when overseas travel by domestic customers is increasing significantly," adding, "Lotte Duty Free will enhance the brand value of both companies and pioneer new markets through successful operation of the in-flight duty-free shop."
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