The government’s proposal to allow passengers to buy just one liquor bottle at airport duty free shops will hurt profits and increase the cost of air travel, said industry executives and experts.
“The proposed reduction in duty-free liquor allowance from two to one bottle will be a big blow for duty-free companies and airports. Duty-free sales are an important component of non-aeronautical revenue for airports and 30 per cent of the non-aero revenue is used to cross-subsidise aeronautical charges,” said a chief executive officer of a private airport. ” Any increase in landing and parking charges for airlines could result in higher airfares and make air travel more expensive,” added Satyan Nair, secretary-general of Association of Private Airport Operators (APAO).
