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“We want to create points ofdifference at our airports, andencourage newbrands to join us,and we think thisairside area atPorto is a goodstep along thatpath.” Aeroportosde Portugal RetailDirector Luis Rodolfocelebrates the inauguration of astylish new retail and food &beverage complex at PortoAirport.

“We are delighted to have beengiven the opportunity to be partof the transformation of the retailexperience at BelfastInternationalAirport.” AeliaGroup Chairmanand CEO Jean-Baptiste Morinapplauds thecompany’s new-look retail offer inthe Northern Irish capital,highlighted by a 633sq m taxand duty free store in thereconfigured Departures zone.

“We are thrilled to have this newopportunity and appreciate theconfidence Royal Brunei Airlineshave shown in ourlocal managementand operationalteam.” DFASS(Singapore)President JohnGarner celebratesthe Miami-basedconcessionaire’s success ingaining the inflight duty freeconcession onboard RoyalBrunei Airlines.

FRIDAYSATURDAYSUNDAYMONDAYTUESDAYWEDNESDAYTHURSDAY 30 SEPTEMBER 2010DaysThe Week in Travel Retail

Issue367

This week’s image shows the sleek lines surrounding a new 750sq m duty freeshop at Kyiv BoryspilAirport’s new Terminal F,which was inaugurated byPresident Victor Yanukovychlast week. There GebrHeinemann has entered into an agreement to buildand manage all the storesalongside Ukrainian masterconcessionaire BF Group.

Image of the Week

QUOTES OF THE WEEK

WELCOME to The Moodie Report 7 Days. It’s been a big month for Europeanairport commercial openings, with important developments in Porto, Kyiv and Belfast,writes Martin Moodie. The Moodie Report was delighted to be on hand in two ofthose locations – Porto Airport and Belfast International Airport – where vibrant newcommercial offers have been unveiled in recent days by Aeroportos de Portugal andAelia, respectively.

They may be small airports, but in each case the quality of the retail offer is first-rate. InBelfast, Aelia Duty Free opened a 633sq m tax and duty free store plus a second 88sq mdedicated gift shop, called The Irish Quarter. Brian Carlin, Director of CommercialDevelopment at Belfast International Airport, commented approvingly on Aelia’s“formidable understanding” of both the airport company’s vision and of its passengerprofile. The result, he noted, is a “modern and service-focused” offer. We agree.

At Porto Airport, Aeroportos de Portugal inaugurated an impressive retail and food &beverage complex. The commercial area at Porto has grown by 2,500sq m to 6,104sq mand ANA said it expected retail sales at Porto to hit €34 million in 2010, up by +60%over the past five years. Expect that exponential growth to continue as ANA’scommendable investment pays off.

In Ukraine, the new Terminal F at Kyiv Boryspil Airport was inaugurated by PresidentVictor Yanukovych last week. Gebr Heinemann has entered into an agreement to buildand manage all duty free shops there, alongside Ukrainian master concessionaire BFGroup. Early photographic evidence (see Image of the Week) suggests another high-quality Heinemann effort – an important power play in a critical region.

This is my last edition of 7 Days for some time, due to an operation I will be havingnext Tuesday and the need for a prolonged recovery period. You will be in the goodhands of Deputy Publisher Dermot Davitt, who has done such a superb job of steeringThe Moodie ship since I fell ill earlier this year.

The past four months have been testing ones for this company and I am immenselyproud of how my team has coped with the situation. That our product has gone fromstrength to strength during such an internal crisis is testament to the strength andcapability of our people and I thank them for their fantastic efforts. I also say a heartfeltthank you to all of those industry friends who have wished me well during recentmonths. That support has given me strength that will serve me well in the coming days.I look forward to my return to these pages in the near future.

Thursday 30 September 2010The Moodie Report 7 Days


INTERNATIONAL. The International Air Transport Association (IATA) this week announced internationalscheduled traffic results for August indicating year-on-year increases of +6.4% for passengers and +19.6% for cargo.

August’s growth is down from the +9.5% (revised) increase for passengers and +23.0% growth in cargo recorded in July.However, August 2010 data is partially distorted by the comparison with August 2009, by which time markets werealready expanding rapidly in a post-recession rebound. When adjusted for seasonality, traffic volumes for passengertraffic fell by -1.0% and cargo by -0.8% compared to July.

“The rapid improvements in demand that we saw earlier this year are behind us,” said IATA Director General andCEO Giovanni Bisignani. “The slowdown of demand in August is consistent with our forecast for a tougher end to2010 as government stimulus monies run out without having generated significant improvements in employment.

“The bounce from re-stocking is over. We do not yet see the strong consumer confidence needed to sustain the expansionwith spending.” Since December 2009 air travel volumes have expanded by +4.3% while capacity has risen by +6%.

Global passenger traffic in August was +2% above the pre-recession levels of early 2008. Asia Pacific carriers recorded ademand increase of +6.2%. While this is still a comparatively strong performance, the region’s airlines carried a similarseasonally adjusted volume of traffic in August as they did in January – indicating a levelling-off of the strong gainsrecorded throughout 2009.

European carriers recorded a +5% growth in demand for August when compared to the previous year. Most of thegrowth that is supporting August’s year-on-year expansion has come during 2010. Demand improvements are beingsupported by inbound traffic on the back of the weak Euro.

North American carriers recorded a +5.3% improvement compared to the previous August. Most of the demandimprovement coincided with a weakening of the US Dollar, enticing inbound leisure travel and stronger business travelin both directions.

Latin American carriers saw the largest dip in demand growth – from +15% in July to +8.7% in August. The bankruptcyof Mexicana affected about 1 million passengers and slightly distorted these numbers. Nonetheless, passenger demandin Latin America has levelled off in 2010 after robust growth in 2009.

Middle East carriers recorded demand that was +12.3% ahead of August2009 levels, down from the +16.5% recorded for July. The shifting ofRamadan into August is partially responsible for the slowdown.

Africa’s carriers recorded growth of +10.8%, slightly ahead of acapacity expansion of +9.0%. Economies in this region are stilldelivering robust growth. This is helping to generate further growth inbusiness travel in the region, which is supporting the growth of Africanairlines passenger business.

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THE MOODIE REPORT 7 DAYS STORY OF THE WEEK

International air traffic development Aug 2010 & YTD 2010

Aug 2010 vs June 2009 YTD 2010 vs YTD 2009Region RPK ASK Load RPK ASK Load

growth growth factor growth growth factor

Africa +10.8% +9.0% 71.7 +12.7% +9.1% 68.7 Asia Pacific +6.2% +4.6% 79.2 +10.0% +2.0% 78.0 Europe +5.0% +4.3% 84.2 +4.0% +0.8% 79.4 Latin America +8.7% +5.7% 77.3 +11.0% +5.1% 75.8 Middle East +12.3% +13.0% 76.9 +18.1% +12.9% 76.0 North America +5.3% +4.5% 86.1 +6.1% +1.5% 82.6 Industry +6.4% +5.5% 81.6 +7.9% +3.0% 78.5

Source: IATA

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ITALY/INTERNATIONAL. Stefanel has again confirmed that its 50% stake in travel retailer The NuanceGroup is not “strategic”, adding in a statement that it is evaluating various options including the partial or total sale ofits investment.

Stefanel has confirmed that it is not in talks with investment banks to list the shares of Nuance in an Initial PublicOffering (IPO). The Moodie Report understands reliably that, instead of an IPO, Stefanel has chosen to sell its stake toa private equity company and has been in advanced talks with a European player in recent weeks.

However the discussions are not yet a done deal, and investment community sources say negotiations could yet breakdown and be widened to other players – though a trade sale, either in part or full, is understood to not be an option.Nuance’s other 50% shareholder, Gruppo PAM, remains fully committed to the travel retail business.

The development spells positive news for Nuance. The combination of a new, committed and well-financed shareholder,supported by Gruppo PAM’s long-term belief in the company, should mean a reinvigorated, recapitalised Nuance that isable to play a bigger role in the likely consolidation of the travel retail sector in the short and medium term.

Nuance has been under a cloud in recent years due to the near-constant speculation over Stefanel’s intentions for thecompany, and because of Stefanel’s own financial troubles. The lifting of that cloud would enable Nuance to commit toexpansion at both bidding and acquisition level.

Contacted by The Moodie Report, a Nuance spokesman said: “We don’t comment on shareholder matters.”

JAPAN. Narita International Airport Corporation (NAA) is to acquire the shareholdings of the remaining joint-venture partners in its subsidiary retail businesses in 2011, as it moves to consolidate its duty free operations. The twosubsidiary companies affected are NAA & ANA Duty Free Corporation (NADF), which operates Sky Boutique Naritastores, and the NAA & JAL-DFS Corporation (NJDS).

Takeshi Yamamoto, Senior Retail Strategy Manager in NAA’s Retail Management Department, told The MoodieReport that NAA will buy out the shares of ANA Duty Free Corporation, Japan Airlines ( JAL) and DFS Group in2011, at a date to be confirmed.

In 2009 NAA bought out the shareholding of its third subsidiary retail company, NAA Retailing Corporation(NAAR), from its partner, JATCo. NAAR, which operates theflagship FaSoLa stores at Narita Airport, is now a fully capitalisedsubsidiary of NAA.

“After NADF and NJDS become 100% capitalised subsidiaries ofNAA, the two companies will merge on 1 April 2012 and be absorbedby NAAR,” Yamamoto said.

The measures follow the strategic objectives for retailing that NAAestablished following its privatisation in 2004. “The reason why wehave had three retailing subsidiaries is that expansion and improvementof non-aeronautical business has been earmarked as one of NAA’s mostimportant policies since privatisation in 2004,” explained Yamamoto.

“We did not have the know-how to operate duty free shops, however,and we needed to learn a lot from current operators. Therefore, as partof that drive, we established three subsidiaries in joint ventures withsome current operators.

“It was decided from the beginning, under the agreement with eachpartner, that NAA would buy out its joint-venture partners’shareholdings of each subsidiary five years after their establishment.”

For more on this story go to www.TheMoodieReport.comMoodie Interactive: Click for the advertiser’s website

THE MOODIE REPORT 7 DAYS BUSINESS NEWS

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PORTUGAL. Aeroportos de Portugal hasinaugurated a stylish new retail and food & beveragecomplex in the airside zone at Porto Airport.

Among the branded outlets just opened at Porto areCarolina Herrera, Purificacion Garcia, Swarovski,Bimba & Lola, Adolfo Dominguez, Story Store,Gelataria Olá, Boutique dos Relógios, Pandora,L’Occitane and Lu Cure Gourmande (the last namedlandside). The first Costa Coffee outlet in the north ofPortugal will also open soon at the location.

With the opening of the new zone, the area occupiedby commercial activities at Porto has grown by2,500sq m to 6,104sq m. The number of stores has

increased by 18 with 43 brands now available. Work on the new zone took six months and represented an investment of€4 million from ANA and its concessionaires, including McArthurGlen Luxury Retail (Collezioni), which managesseveral of the new outlets.

ANA said it expects sales from retail stores at Porto to hit €34 million in 2010, a figure that has grown by +60% overthe past five years. ANA Retail Director Luis Rodolfo told The Moodie Report: “We have made a big investment in thenew commercial areas at Porto, just as we are doing across our network today, with other big projects taking place inparticular at Lisbon and Faro airports. Here we invested €2 million with roughly the same amount coming fromtenants. We want to create points of difference at our airports, and encourage new brands to join us, and we think thisairside area at Porto is a good step along that path.”

The move completes the latest phase of ANA’s Retail Strategic Plan at the location, and is part of a broad drive toenhance the quality of commercial activities across the ANA network in Portugal. For more on this story and anextensive picture gallery go to www.TheMoodieReport.com

UKRAINE. Gebr Heinemann has entered into an agreement to build and manage all duty free shops in KyivBoryspil Airport’s new Terminal F alongside Ukrainian master concessionaire BF Group.

BF Group and Gebr Heinemann Travel Retail will also open a 750sq m duty free shop that will house a range ofproducts across a number of categories. Brand names will include Montblanc, Boss, Swarovski, Chanel, Dior, Guerlain,Givenchy, Lancôme, Armani, Gucci, La Prairie, Shiseido, Estée Lauderand Sisley. International liquor, tobacco and confectionery brands willalso be present as well as an assortment of local products.

The international terminal at Kyiv Boryspol Airport is being replacedby two new terminals – Terminal F, which will be dedicated to charterand low-cost carrier flights and one of the two main Ukrainian airlines,and Terminal D for other airlines.

Terminal F is due for completion in October 2010 and was inauguratedby Ukraine’s President Victor Yanukovych last week. Terminal D isscheduled to be completed in 2012. Once both terminals areoperational the existing international terminal will be dedicated todomestic flights only.

BF Group, a Ukrainian company with interests in the construction ofhotels, restaurants and a warehouse complex in Kyiv, has signed a long-term master concessionaire agreement with the airport and will manageall commercial activities at the new Terminal F from September.

“We expect that half of the current passenger traffic transiting throughthe existing terminal will be transferred to Terminal F including AirUkraine and most charter flights, and believe that the duty freeoperation has an excellent growth potential,” said Gebr Heinemann.


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UK. Aelia UK has unveiled a vibrant new-look retail offer at Belfast International Airport. The move came after thecompany recently renewed and extended its contract for a further seven years. Its initial contract began in 2004.

The centrepiece of the offer is an Aelia Duty Free branded 633sq m tax and duty free store in a prime location in theairport’s reconfigured Departures zone. The airportis just completing a £10 million investment andupgrade of the terminal.

The store offers a full and extended range ofproduct categories from alcohol and tobacco, tofood and confectionery and perfumes andcosmetics. In addition Aelia has opened a second88sq m stand-alone dedicated gift shop, under thename The Irish Quarter. This aims to reflect thespirit of the locality, with its range of Irishfragrances, fashion, food, confectionery andsouvenirs.

Aelia Group Chairman and CEO Jean-BaptisteMorin said: “We are delighted to have been giventhe opportunity to be part of the transformation of

the retail experience at Belfast International Airport. We believe our new stores will give passengers the best possibleairport shopping experience, whilst also optimising performance for Aelia, the airport and our brand partners.”

Fin Casey, newly appointed Managing Director of Aelia UK, added: “We’re committed to growing and developing ourUK business which continues to perform well despite traffic decline. We look forward to maintaining and strengtheningour partnership with Abertis Airports at Belfast International, and at Luton as well.”

For more on Aelia’s development at Belfast International Airport, including a series of photographs, go towww.TheMoodieReport.com

THE MOODIE REPORT 7 DAYS TENDER & CONTRACT NEWS

ASIA PACIFIC. Royal Brunei Airlines has awarded its inflight duty free concession to DFASS Group.Commenting on the award, the carrier’s Vice President Cabin Crewand Inflight Services Anne Aziz-Parker said: “DFASS hasdemonstrated its capability to establish and drive forward our duty freeprogramme during the tender proposal.

“I am looking forward to working closely with them and to realisingthis exciting new opportunity together.”

DFASS (Singapore) President John Garner added: “We are thrilled tohave this new opportunity and appreciate the confidence Royal BruneiAirlines have shown in our local management and operational team.We look forward to an outstanding launch with them in early 2011.”

Royal Brunei Airlines, the national carrier of Brunei, has a fleet of sixBoeing B777s, two Airbus A319s and two Airbus A320s. The airlineoperates scheduled services across Asia, the Middle East and Australia,and to the UK.

LATVIA. TAV Airports Holding has been named the preferredbidder for the commercial management master contract at RigaInternational Airport. The contract will run for ten years and coverduty free, speciality retail, food & beverage, currency exchange, carrental, business lounges, banking and other services. The commercialspace on offer measures 4,646sq m.


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TAV Airports said in a statement: “We have been notified that TAV Airports became the preferred bidder in the tenderheld by SJSC Riga International Airport Management regarding the operations of the commercial areas within RigaAirport. As per the tender specifications, our company will undertake the operations of the commercial area graduallyas of 1 January 2011 for a period of ten years.”

In 2009 Riga International Airport increased the number of direct flight destinations to 82 by adding 29 new routes.It served about 4.1 million passengers in the year.

PORTUGAL. LFP–Lojas Francas de Portugal and ANAM–Aeroportos da Madeira SA have struck a five-yearconcession agreement for four shops at Madeira Airport until 2015. With this deal The Nuance Group’s Portuguesejoint venture extends its presence to all Portuguese international airports.

The deal follows a tender for the space, which is 450sq m at Madeira Funchal Airport. LFP will renew the currentcore-category shop and also open a fashion shop, a gate shop in the non-Schengen area and an Arrivals shop. LFPalready operates 22 shops across six other airports in Portuguese territory.

LFP Managing Director Nuno Amaral said the concession “reflects the recognition by ANAM that LFP is a crediblepartner which understands the particular needs of the national airports. This knowledge of the local market togetherwith the expertise from our shareholder Nuance provide us with an unbeatable competitive advantage to strengthen andimprove the offer and results of the Madeira airport.

“LFP is willing to invest together with ANAM in order to continuously improve the airport retail scene in Madeira.”

Duarte Ferreira, ANAM’s Board member and CEO of Madeira Airport, said: “ANAM has invested heavily in themodernization and improvement of Madeira Airport as an entry-point to the touristic offer of the island and as a mainsource of development of the regional economy.

“This tender was a step further towards that goal and we are delighted to welcome a partner that has proved to betotally aligned with our strategic objectives. LFP is already present in six airports in Portugal and has a goodunderstanding of the profile of both national and international customers that visit our country.

“LFP demonstrated good logistics, commercial and operational management, which is being fuelled both by its localmanagement and also by the know-how of its shareholders, The Nuance Group and TAP Portugal.”

LFP–Lojas Francas de Portugal, SA is a joint venture between Portuguese flag carrier TAP Portugal and The NuanceGroup.

SINGAPORE. Nuance-Watson (Singapore) has been awarded a46sq m concession in Singapore Changi Airport Terminal 2, where itwill open a new concept MCM store. This will be the luxury company’sfirst stand-alone boutique at Changi Airport.

MCM’s first boutique in Singapore with partner Nuance-Watson(Singapore) aims to enhance its strong presence across Asia. The 46sqm store is located in Departures South Transit Lounge and will offerboth men’s and women’s large and small leathergoods.

Gerry Munday, Global Travel Retail Director of MCM, which celebratesits 35th anniversary next year, said: “We are absolutely delighted to beworking with Nuance-Watson (Singapore) at Changi Airport and tohave been given this prestigious location for the MCM brand.

“It’s a very exciting time for MCM and this new location furtherenhances and strengthens our position in Asia.”

Nuance-Watson (Singapore) Managing Director Ken Tse said: “We’revery pleased to have MCM onboard. This new addition to our brandportfolio marks another important milestone for our presence inChangi Airport.”


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INTERNATIONAL. Leading travel food concessionaire SSP is to sponsor the Gala Dinner at the inauguralAirport Food & Beverage (FAB) conference and awards in Manchester next January, organised by The Moodie Report.

SSP is already a Platinum Sponsor of FAB, and its commitment underlines the high level of interest in the event, whichtakes place on 23–25 January 2011 and is hosted by Manchester Airport. SSP is joined as Platinum Sponsor by fellowairport F&B giant HMSHost, which will also sponsor the Opening Cocktail.

A certain highlight of the occasion will be the first-ever FAB Awards. Entries have been pouring in from all over theworld before the deadline of 1 October. A full Awards information pack, including entry forms, can be downloaded atwww.TheMoodieReport.com

An ‘Early Bird’ conference registration, offering a £100 discount, applies until 31 October. Please visitwww.kingley.co.uk/FAB for full details on hotel and delegate registration, plus programme and sponsorship details.

Confirmed speakers in a powerful line-up at the conference (24 and 25 January) include Manchester AirportManaging Director Andrew Harrison; Rick Blatstein, President and Founder of acclaimed independent US airportF&B operator OTG Management; SSP Chief Executive Andrew Lynch; HMSHost President and CEO Elie W.Maalouf; Heathrow Airport Retail Concessions Director Brian Woodhead and Caviar House & Prunier PresidentPeter Rebeiz.

They will be joined by Doug Tomlinson, CEO of US airport wine bar specialists Vino Volo; Rajeev Panjwani,Managing Director of India’s leading F&B concessionaire Travel Food Services; Peter Martin, Founder, Peach Factoryand Peach Report; and David King, Director of The David King Partnership.

This strong speaker contingent is capped by Manfred Funke, Manager HORECA at Amsterdam Airport Schiphol;Puan Faizah Khairuddin, Senior General Manager, Commercial Services Malaysia Airports, Malaysia; Mark Hallstein,Senior Manager Category Food & Beverages, Fraport/Frankfurt Airport Services Worldwide; Noel Toolan, ChiefMarketing Officer, SSP; Andy Bull, Vice President, Marketing Intelligence, SSP; Chris Annetts, Head of Category forFood & Beverage, Heathrow Airport; and Martin Moodie, Founder & Publisher of The Moodie Report.

For sponsorship enquiries please contact Sarah Genest at [email protected]

For all other details go to www.TheMoodieReport.com

US. Airport restaurateur OTG, in partnership with Greater OrlandoAviation Authority (GOAA), has opened three additional locations inOrlando International Airport’s Airside 4 Terminal.

The new openings bring OTG’s Cibo Express Gourmet Marketsconcept to the terminal in a variety of formats, offering up to 1,000freshly-prepared products and bottled beverages.

The Gate 92 Cibo Express Food Hall includes a full gourmet market,self-serve hot and cold food bars, Tagliare pizza, Dunkin Donuts and aRe:vive bar. At Gate 82 passengers will enjoy a Cibo Express GourmetMarkets and Tagliare, which serves New York-style pizza by the slice orthe pie. Cibo Express Gourmet Markets is also open at Gate 72.

Cibo Express Gourmet Markets was first introduced by OTG in 2003and has grown to encompass 36 units in eight US airports.

“OTG is committed to re-inventing the airport dining experience andestablishing a new, higher standard for food & beverage for travellers,”said OTG Management CEO Rick Blatstein. “We are excited to bepartnering with GOAA to bring these concepts and great service toOrlando passengers.”


THE MOODIE REPORT 7 DAYS FOOD & BEVERAGE & OTHER COMMERCIAL REVENUES

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INTERNATIONAL. The Moodie Report parent company Moodie International has signed a long-termagreement with airport commercial planner and consultant The S-A-P Group (Strategic Airport Planning), with a viewto cooperating on research studies and other data-led projects.

The partnership brings together the travel retail industry’s leading business intelligence provider with one of the mostexperienced airport consultancies, with a major new initiative to be announced shortly.

With offices in Bangkok and San Francisco, The S-A-P Group specialises in helping airports create business-orientateddevelopment strategies. Its team of consultants, with experience in the airline, airport, real estate and governmentsectors, integrate both financial analysis and facility planning to optimise an airport’s development objectives. TheGroup’s expertise in data collection and analysis, combined with Moodie International’s editorial strength and globalreach, will create a powerful partnership based on complementary skills.

The S-A-P Group President Bill Matz commented: “This is an exciting move for The S-A-P Group and one which wefeel will bring benefits not only for ourselves and our partners but for the airport retail industry as a whole. Ourexperience in helping our airport clients improve commercial revenues, combined with The Moodie Report’sunderstanding of the factors that shape this market, enables us to provide essential analytical tools that allow airportsand retailers to get more from their business.”

The Moodie Report Executive Director Business Development John Rimmer said: “Led by Bill Matz, The S-A-PGroup has an impressive portfolio of airport clients and has contributed to the success of some of the world’s mostambitious airport retail programmes. They are experts in analysing airport retail performance and in identifying ways todrive non-aeronautical revenue. We feel they are the ideal partner as we look to develop new and improved researchtools for all stakeholders in travel retail.

“We believe that there is demand in the travel retail industry for accurate and actionable research studies that helpairports, retailers and brand-owners benchmark their existing operations and identify new opportunities. Thispartnership with S-A-P will help us meet that demand. We are excited about the possibilities this relationship opens upand look forward to announcing our first collaboration soon.”

INTERNATIONAL. The European Travel Retail Council (ETRC) and Asia Pacific Travel Retail Association(APTRA) are among the leading trade bodies to strongly refute a recent report of the World Health OrganisationTobacco Free Initiative (TFI), which claims that the availability of duty free tobacco products has facilitated illicit trade,tax avoidance and tax evasion.

The TFI report also claims that duty free undermines national tax and pricing policies for tobacco products. Alarminglyfor the industry, its report will be presented for consideration at the upcoming session of WHO in November.

ETRC, APTRA and other trade organisations claimed to be confident that these allegations will be rejected inNovember, because they are “not evidence-based and bear no resemblance to reality”.

The industry groups repeated their statements in previous defences of the industry by noting that duty free operates in a“heavily regulated and controlled marketplace and travellers allowances are strictly limited”. They also noted thatretailers work with Customs and national authorities to maintain the integrity of the supply chain.

THE MOODIE REPORT 7 DAYS GENERAL NEWS


In a joint statement ETRC and APTRA said: “Given the size of the market served by the duty free industry (less than1% of all tobacco sales), the strict controls involved, and the reputations of the companies involved, it is plainlyridiculous to allege that duty free sales of tobacco are a major contributor to illicit trade, undermine national tax andpricing strategies and encourage tax avoidance and evasion.”

UK. London Heathrow has been crowned the best airport for shopping for the second year running at this year’sBusiness Traveller Awards. The airport was also named the second best airport in Europe and the fourth best in theworld at the awards, which took place on Monday at Kensington’s Royal Garden Hotel.

With more than 750,000sq ft of retail space, Heathrow is home to more than 500 shops and brands including premiumnames such as Harrods, Prada, Gucci and World Duty Free. A new Burberry boutique in Terminal 5 and the newHackett store in T4 have recently opened.

Building on the success of T5, Heathrow last year unveiled its new-look T4, which provided a new check-in anddeparture area for passengers following a £200 million redevelopment and which includes the first-ever Cath Kidstonairport store and premium fashion brands such as Jimmy Choo and Etro among other exclusives.

Heathrow Retail Concessions Director Brian Woodhead said: “The Business Traveller Awards are highly regardedwithin the industry so we are absolutely thrilled to have been recognised as the best airport for shopping for a secondyear running, and to be closing in on Amsterdam in the best European airport category. This award is a credit to themany people working hard to make every passenger’s journey better than the last one, and to providing the excellentshopping experience we know our passengers expect.”


THE MOODIE REPORT 7 DAYS DATA ROOM – PASSENGER TRAFFIC NEWS

ASIA PACIFIC. Preliminary figures for the month of August released by the Association of Asia Pacific Airlines(AAPA) showed continued solid growth in both passenger and air freight demand. Asia Pacific-based airlines carried16.8 million international passengers in August, a +12.4% increase compared to the same month last year. Internationalpassenger traffic as measured in revenue passenger kilometre (RPK) terms grew by a slightly more conservative +8.4%,indicating particularly strong demand on regional short-haul routes.

Careful capacity management saw offered seat capacity grow by +5.3%, which led to a 2.3 percentage pointimprovement in the average passenger load factor to 81.2%.

“Strong demand for air travel and air cargo shipments in August provide further confirmation of the robustness of theongoing economic recovery across the Asia Pacific region,” said AAPA Director General Andrew Herdman. “Overall,for the first eight months of the year we have seen +14.9% growth in the number of international passengers carried,and an even more dramatic +32.1% rebound in the volume of international air cargo.

“As a result of the surprisingly sharp V-shaped recovery, traffic levels for Asian carriers have now surpassed the highwater marks set before the global recession. The combination of strong volume growth, disciplined capacitymanagement, and an improving mix of business boosted by the recovery in corporate travel, have all helped to restoreairline profitability, with Asia Pacific airlines leading the way.

“The outlook for the remainder of the year remains broadly positive, although reported growth rates are expected tostabilise as the recovery phase is completed. Looking ahead to 2011, we anticipate further growth in demand for air travel,in line with historic trends, despite some uncertainties regarding the uneven nature of the global economic recovery.”

To be run between 4 and 7 March 2011 (anywhere in the world!)

In support of Hand in Hand for Haiti (www.HandinHandforHaiti.com)

● Calling for teams of six from travelretail companies

● Team members to each run one-sixth of amarathon (7.03km)

● Individual team members can run indifferent international locations

● Run can be on treadmill, track or terrain

● Individual and team times recorded● Fastest and most valiant team prizes● Best location and best uniform prizes● Prizes for best fundraising efforts● Entry/donation fee of US$300 per team● Each team to also raise additional

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To enter your team or for more details contactMartin Moodie at [email protected] Mann at [email protected]

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NEW ZEALAND. Auckland Airport has reported a +4.0% rise in international passenger volumes (excludingtransit and transfers) in the month of August. Total international passengers numbered 603,995 for the month, inclusiveof transits.

Asian and North American traffic numbers showed improvement for the month, but European and Australian trafficwere below the same period last year. Australian arrivals declined -4.6% over August 2009 but remain +7.1% ahead on a12-month rolling basis; 630,071 Australians have arrived at Auckland in the past 12 months. UK arrivals dropped -16.1% while German arrivals declined -13.0%.

Chinese traffic grew by +99.0% over August 2009, from a small base. However it should be noted that in an otherwisesteadily growing market, August 2009 saw visitor numbers fall well below prior years as a result of the H1N1 pandemic.Japanese and Indian arrivals grew by +64.5% and +27.2% respectively this August.

UAE. Passenger traffic at Dubai International Airport climbed by +6.8% year-on-year in August to 3.98 million,Dubai Airports has reported. For the first eight months passenger traffic was up +14.7% at 30.84 million, compared to26.9 million for the corresponding period last year.

In August the largest increases in total passenger numbers were recorded on routes to and from Western Europe (with84,953 more passengers than in August 2009), Asia (65,210 more passengers) and the Indian subcontinent (52,538more passengers).

The largest percentage passenger traffic expansion was seen on routes to and from Eastern Europe (+217%), Asia (+25%),Australasia (+14%) and Russia & CIS (+14%). Passenger numbers on Middle Eastern routes fell by -7%, largely due tothe affects of Ramadan.


THE MOODIE REPORT 7 DAYS TRAVEL & TOURISM NEWS

JAPAN. Outbound travel demand for November is strong, according to Travel Journal International (TJI) Online.

Booking activities for November at Japanese tour wholesalers have surpassed the levels of a year earlier, TJI said,“reflecting the continued rebound from 2009 when overseas travel demand by Japanese shrunk amid concerns over theeconomic downturn and recurrence of the H1N1 epidemic”.

Findings from the publication’s latest monthly booking survey for the three-month period (September–Novemberdepartures) at Japan’s eight major tour wholesalers conducted during the 2–17 September period revealed strongerbookings in seven of the eight cases.

Hawaiian and European destinations are particularly popular, according to the survey results. Bookings at all five agencieshandling European tours and seven wholesalers handling tours for Hawaii exceeded the levels of a year ago, TJI said.

Mach/Best Tour said reservations of tours for Europe were strong, with demand for Egypt and elsewhere in the MiddleEast also positive. LOOK JTB also said bookings of tours for Egypt and Turkey by seniors are on the rise. Bookingactivities for Hawaii-bound tours at ANA Hallo Tour surged by +188% compared to 2009, with momentum holdingsteady through the year-end/New Year holiday season.

“The strong Japanese Yen has boosted consumer motivation to travel overseas, prompting demand for destinations thathave shown lacklustre growth,” said TJI.

For details please contact ACI’s Andreas Schimm at [email protected] orThe Moodie Report’s Martin Moodie at [email protected]

www.aci.aero www.TheMoodieReport.com

TRINITYFORUM

THE

2011

Airports ◆ Retailers ◆ BrandsAnnouncing the World’s Premier Airport Commercial Revenues ConferenceHosted by King Power International’

9-11 February 2011 ◆ Pullman Bangkok King Power Hotel, Bangkok,Thailand


BELGIUM. Marc Leemans has been named as Managing Director of the Chacalli De Decker (CDD) group ofcompanies, a leading wholesaler and distributor to the European travel retail trade, with activities in Belgium,Netherlands, Germany, France and the UK.

The highly respected Leemans is best known for his contribution to the growth of Belgian Sky Shops, where he wasCommercial Manager for 17 years. He left that role last year to create his own consultancy.

In related news, Executive Director Mike Sheriff takes up the post of Business Development Director at Chacalli DeDecker, based in the UK.

As reported, CDD was taken over by the Overseas Trading Company (OTC) in September 2009. A specialistwholesaler and distributor in duty free and travel retail, OTC had been a long-standing supply partner to CDD.

FRANCE/INTERNATIONAL. With less than four weeks until the TFWA World Exhibition, TFWA hasreported an +8% rise in pre-registered visitor statistics versus 2009, with the number of companies up +5% on last year.

These figures indicate that pre-registration is running significantly ahead of the same stage last year, although not yetup to the 2008 level, TFWA added. Over 5,000 visitors attended TFWA World Exhibition in 2009.

Pre-registration will close on 24 September, though key visitors who have already registered as ‘Standard Delegates’ haveuntil 27 September to upgrade to ‘Full Delegate’ status. Full delegates will enjoy added benefits such as tickets to socialevents – including the private concert performed by Mika at Le Premium Evening, and use of the TFWA Lounge.On-site registration opens on Saturday 16 October at a slight premium.

Further information, full programme and registration details are available at www.tfwa.com

UK. Karen Lindsay, formerly Advertisement Manager at Duty-Free NewsInternational and Travel Retailer International, is to join The Moodie Report in therole of Advertising Director next month.

She will play a key role in sales administration, new business development andadvertising and sponsorship sales at The Moodie Report and related new products.

Karen Lindsay joins a strong and established sales team comprising CommercialDirector Mandy Sime and Advertising Directors Claire Wates and Sarah Genest.She will report to Chief Operating Officer Bob Wilby on administrative mattersand Founder & Chairman Martin Moodie on sales.

From 18 October Karen can be contacted at [email protected] before then on [email protected]. She will join the company afternext month’s TFWA World Exhibition in Cannes.

Thank you for your readership and support of The Moodie Report.

Martin Moodie, Founder and Publisher


THE MOODIE REPORT 7 DAYS PEOPLE NEWS, JOBS, EVENTS & NOTICES

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