Liquid ban hits sales at airport duty-free shops

New Delhi: Duty-free sales at departure-side outlets of Indian airports have been hit due to regulations imposed by the US, the European Union, Australia and Hong Kong on liquids, aerosols and gels (LAG) following a bomb scare at London last year.
Departure-side outlets account for 60% of the Rs 300-crore duty-free sales at Indian airports and this segment has witnessed a 30% decline during the recent months, industry representatives have informed the civil aviation ministry.
This loss of business was due to restrictions imposed on passengers from India and other countries at airports in the US, the European Union, Singapore, Australia and Hong Kong. In the name of security restrictions, duty-free purchase at Indian airports — considered 15% to 20% cheaper than major international hubs — is being discouraged, ministry officials were informed recently by the Indian Duty Free Association.
Former civil aviation minister Shahnawaz Hussian, now an MP, has also written to civil aviation minister Praful Patel to highlight the issue. Interestingly, the move comes at a time when a number of new players including the UK-headquartered Alpha Airports Group and Aldesa of Spain have entered the duty-free business in India.
07/05/07 Economic Times

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Categories: Airports May 2007