Cochin pins revenue growth aims on duty-free

Cochin International Airport Limited (CIAL) is hoping to attract new airlines by reducing landing charges with the help of its growing duty-free business. Speaking at the Gate One2One conference at the TFWA Asia Pacific show earlier this month, CIAL general manager commercial V Suresh Babu reported that duty-free revenue at the Kerala airport accounts for 30% of total airport revenues at present, and that the airport hopes to grow that figure to 40% with planned changes to the airport layout.
Babu said: “We want to be the first airport in India with no landing charges…Indian airports on average generate 70% of revenues through aeronautical operations and 30% through non-aeronautical operations. At Cochin we generate 42% through non-aeronautical. We have identified three areas to grow non-aeronautical revenue, of which duty-free is one. We are aiming to increase dwell time by redeveloping the airport layout, and to expand the area devoted to duty-free.”
Alpha Asia operates the duty-free business at Cochin under the Alpha Kreol fascia, through a management contract with CIAL. Alpha Asia managing director Paul Topping told DFNIonline that the business has been achieving “phenomenal” growth as a result of extending its product offer and improving customer service. He also attributed growth to the big space CIAL had given the retailer.
29/05/08 Gavin Lipsith/DFNIonline.com, UK

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Categories: Airports May 2008