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The aviation industry is a very competitive industry. Operating reve-nues comes from the passenger earnings, air cargo transportation and air-craft maintenance. In terms of gaining profit from air tickets, it depends on its route, safety, quality and service, etc. Theoretically, increased income will lead to increased business revenues. Because there are many authori-zation related issues in aircraft maintenance, the profit of adequate mainte-nance stays relatively stable. Airline fuel continues to be the largest sin-gle cost item, which collectively accounts for 40% of total airline cost for the global airline industry. Therefore, airline operation is undoubtedly a highly competitive market, the total items of the incomes and expenditures are extremely important. The sales of duty-free goods on board is a unique travel retailing channel, which is becoming one of the major income sources for airline operation. The domestic aviation market has expand-ed and grown rapidly over the past years. The annual net income of do-mestic airlines is about one billion to two billion- contributing about hun-dreds of millions of profits to achieve the stable profitability.
According to the current regulations, the duty-free goods must be stored in the bonded warehouse first, then put into the duty-free carts, selling boxes and selling bags before being sent on board for sale, to be served to the passengers (e.g. food and beverage), or as supplies for returning flight from overseas.
The current management of in-flight duty-free goods is running stably. The purpose of this paper is to discuss how to increase the revenue. The data and information used in this paper are legally collected by interview-ing senior management with decision-making power of airline companies and related corporations.
After a series of analyses, we have some suggestions to increase the reve-nue of the in-flight duty-free goods. For example, there are always a few top selling items running out of stock. The airline companies and bond-ed warehouses can adjust the quantities and the categories of duty-free items for sale on board according to the sales data- the slow-moving items can be replaced by top selling items, which can increase the sales. We hope our recommendations can help in gaining more revenue for air-line companies and related corporations.
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