ARC ST ANNUAL AIRLINE RETAIL CONFERENCE. If youʼre serious about in-flight retail, you must attend this conference!

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1 1 ST ANNUAL AIRLINE RETAIL CONFERENCE 10th & 11th July Seattle Hotel, Brighton Marina, East Sussex, UK ARC2007 The definitive airline retail conference, where key decision makers meet to define and influence the future of in-flight retailing. If youʼre serious about in-flight retail, you must attend this conference! in association with

2 January 2007 PARTNERSHIP Korean Air & Scental Korean Air and Scental celebrate inflight success With sales of around US$170 million in 2006, Korean Air once again ranked as the world s most successful inflight retailer. To honour that achievement, Inflight Sales Team Director Hyun-Ah (Heather) Cho and her close associates at beauty supplier Scental hosted the party to end all parties at Incheon recently. The Moodie Report was on hand to witness the celebrations. When Korean Air (KAL) crew work, they work hard. And when they party, they party with equal vigour. So when Inflight Sales Team Director Hyun-Ah (Heather) Cho invited her cabin crew to celebrate another record-breaking year she was determined it would be no ordinary event. The year-end party, held at the KAL-run Incheon Hyatt Regency near Seoul Incheon Airport, was co-hosted by the airline s leading supplier, Scental/Lancôme, and no expense was spared in honouring the achievement of being the world s top inflight retailer again in Hot Korean hip hop star Psy enthralled the crew with a stunning live performance, provoking near-mania among many of the 400 crew present. And Scental laid on beauty makeovers for the crew in a glamorous Hollywood setting. There was much to celebrate. Final figures were being drawn up as we went to press, but it seemed certain that KAL would hit an all-time annual sales high of US$170 million. That s a +10.5% increase from the record of US$154 million set a year earlier. Addressing the audience, Managing Vice President Cabin Services Division Myung-Ki Lee talked of KAL s aim to be one of the leading global carriers. Despite recent success, including being named Best Airline of Asia 2006 by Time magazine, Lee said: I promise you, we are not yet satisfied with results. Bo Park, Managing Vice President of Korean Airlines Hotel & Inflight Sales Division, paid tribute to the concerted efforts and concrete work of cabin crew members in driving the airline s outstanding duty free sales results. And in an emotional speech Hyun-Ku Kim, President The Moodie Report 73

3 You ll Only Find These Three Kings In One Location: Duty-Free Shops Worldwide. Daniel Nuñez, Macanudo Cigar Master As an international traveler who appreciates the smooth, sophisticated taste of premium Macanudo cigars, you will be pleased to know Macanudo Cigar Master Daniel Nuñez has created three exclusive, limited edition Macanudos to make you feel like a monarch as you travel the globe. Available only in duty-free shops, each cigar is handcrafted from specially selected, richly flavored Dominican Piloto Cubano and Mexican filler leaves, bound with a Mexican San Andrean binder, then finished with a golden-brown Connecticut Shade wrapper, exemplary of the world s finest wrapper leaf. These kingly cigars are available in the three sizes preferred by the international traveler: Melchor 6" x 45 (21 x 152 mm), Gaspar 5"x 54 (22 x 133 mm) and Baltasar 6" X 52 (21 X 152 mm). And they come in elegant cedar travel/gift cases of ten cigars each. Cigar Master Nuñez hopes the Three Kings will make your travel extraordinarily rewarding. Macanudo Melchor Macanudo Gaspar Macanudo Baltasar

4 January 2007 PARTNERSHIP Korean Air & Scental Korean Air: Sales by nationality Korean Air: Breakdown of duty free sales by route South Koreans 82% Americans 6.8% Japanese 6.7% Chinese 1.9% Others 2.6% US 27.4% Europe 17.9% China 17.7% Southeast Asia 17.3% Japan 13.5% Oceania 6.2% Source: The Moodie Report Source: The Moodie Report of L Oréal s travel retail agent in South Korea, Samkyung Trading Corporation, praised the outstanding newness of the Korean Air catalogue and a quality that surpasses many of the great duty free stores of the world. All of that would have been music to the ears of Heather Cho, a passionate and driven business leader but one who knows that without the support of the cabin crew, duty free success is impossible. This is the first time that KAL has celebrated the cabin crew s great work throughout the year, she said. Without their great support, the amazing results of the past five years would not have been possible. The night also underlined the firm partnership between the airline and Scental Travel Retail (L Oréal Produits de Luxe International). You are very important to us, Scental General Manager Asia Pacific Rémi Chadapaux told the 400 crew members. You are the link between our brands and our consumers. I also want to thank Heather Cho for her support and for her dynamic vision of the inflight duty free business. (Left) Travel retail s star turn: Rémi and the Scental-sations (Right) Cabin crew enjoy the Hollywood experience The Moodie Report 75

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6 January 2007 PARTNERSHIP Korean Air & Scental Psy mania took hold as the Korean hip-hop phenomenon let loose He continued: Korean Air is the number one airline in the world in inflight duty free and Lancôme is the number one beauty brand in travel retail what a natural partnership. Psy might have been the star turn of the night, but not far behind was a musical contribution from the Scental team itself, who entered the spirit of the occasion by performing in Korean a popular rock song that had the audience calling for more. If Chadapaux and his team Korean Air duty free sales by category ever need to consider alternative careers in the music industry, they ve already created a significant female fan base. It was that sort of evening. Plenty of fun but with lots of serious messages. Messages about partnership, commitment, training and teamwork. Seong Jin Kim was named top-selling female crew member, while Jun Il Jin took out the male award. The top Team Manager was Mi Kyung Kim. And though they were the outstanding individuals, everyone in the room was left with the unmistakeable impression that they had contributed to a Korean and industry success story. Cosmetics 35.78% Liquor 31.93%. Gifts 6.88%. Fragrances 6.03% Chocolates 4.65%. Cigarettes 4.18% Note: For sales up to 20 December 2006 Source: The Moodie Report Fashion items 4.15% Writing instruments 3.04% Watches 1.38% Pearls 1.14% Pre-order items 0.84% Rémi Chadapaux, Heather Cho and Martin Moodie The Moodie Report 77

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