Duty-free shops fuel huge profits

Thiruvananthapuram: The Cochin International Airport Limited, which runs India ‘s first corporate airport, has registered impressive revenue from its duty free business, thanks to an aggressive promotional campaign.
It now contributes 25% of the airport’s total revenue, according to Sreeram Bharath, the CIAL managing director.
Run jointly by the CIAL and Alpha Kreol India , the Indian arm of multinational Alpha UK and UAE-based Kreol Group, it claims the lowest duty free prices in the Asia-Middle east region.
“Passengers arriving at Indian airports were typically used to a dull, dreary airport with the sleepy duty free shop relegated to one corner of the airport. Now, that’s a thing of past. You’ll be amazed at the transformation,” Bharath said.
The duty free section extends over 14,000sq ft at the arrival area and it registered an annual average growth of 50% in sales since its launch eight years.
The airport has now launched a promotional programme called Full House in association with premium drinks business Diageo. Passengers buying Diageo products worth $20 stands to win a 1115sq ft flat in Kochi worth 2mn rupees through a lot besides scratch cards that offer discounts.
10/03/07 Gulf Times, Qatar

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Categories: Airports Mar 2007