Monday, January 20, 2020

Cut in duty-free liquor quota may hit Adani, Zurich

New Delhi: Commerce Ministry's proposal to cut the quota for purchasing liquor at dutyfree shops to one bottle has left private airport operators in a tizzy.
 A senior official of a private airport said that the proposal, if accepted by the Finance Ministry, would also hit newcomers such as Zurich Airport International and Adani Enterprises.
 While Zurich has bagged the contract to build the Greater Noida airport, Adani has successfully won the right to upgrade and manage six international airports, including Ahmedabad, Lucknow and Jaipur. 
"Both Adani and Zurich have won the bids promising to share highest revenue share per passenger. If the quota for purchasing liquor is halved, then their maths will go wrong," the executive said. He added that the proposal would also affect investor sentiment at a time when the Airports Authority of India (AAI) is planning to bid out six more airports on public private partnership (PPP).
 Satyan Nayar, Secretary General at Association of Private Airport Operators (APAO) said that the proposed move to slash liquor purchase quota would result in substantially affecting the non-aeronautical revenue of airport firms.
 "This will necessitate increase in landing and parking charges by the airport regulator. As a result, the cost of operations for airlines will go up. The airlines would pass on this cost to passengers. So, airport operators, airlines and passengers will be affected," Nayar said.
 As per an estimate, liquor accounts for 60-65 per cent of total sales at duty-free shops at international airports. Mumbai and Delhi airports would see the maximum impact of this as earnings from duty-free shops contribute significantly to their total non-aeronautical revenues.
20/01/20 IANS/Economic Times
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