Changi notes -20% fall in liquid sales as aviation security regulations bite – 24/11/06

SINGAPORE. The various crackdowns on liquids and gels that can be carried on to flights since the 10 August UK terror alert have caused a severe downturn in duty free sales at Singapore Changi Airport, The Straits Times reported today.

Although constraints on what can be bought and carried onboard have eased since the height of the alert, several restrictions are still in place (*see below for full list of Changi rules in place today). Duty free sales on affected routes are down by almost -20% year-on-year since the crisis began, the national newspaper reports.

An initial total ban on liquid carry-ons to Air India flights as well as the well-documented European and US restrictions of recent weeks have eroded previously anticipated sales growth.

Overall sales (all routes) have grown by just +1% year-on-year since August, the Civil Aviation Authority of Singapore (CAAS) told the newspaper. “Before the London plot was uncovered, airport retailers had expected a +3 to +5% increase,” it said.

Nuance-Watson (Singapore), which holds the Changi fragrances and cosmetics concession, expects revenue in the 12 months following the August alert to fall by between S$6 million and S$8 million (US$3.9-$5.2 million), said General Manager Ken Tse. The newspaper says the retailer makes about S$190 million (US$122 million) a year in sales.

Tse told The Straits Times: ‘Passengers travelling on Air India and those flying to the United States, Canada and Europe contribute about 20% to our sales, so the impact is significant.

“The Indian market, especially, is a growing one and their spending on liquor and perfumes has seen double-digit growth in the past two to three years.”

Summary of the limits since 10 August at Changi

10 August: Terror alert in the UK. Passengers leaving Changi on US carriers and those bound for Canada must check in all liquids and gels, including perfumes, alcohol and toothpaste.

September: The US partially lifts its ban and allows limited quantities of liquids, gels and aerosols in hand luggage.

6 November: New restrictions in EU, EEA and Swiss airports mean those departing Changi for those locations and then transiting on will have duty free purchases of liquids/gels in excess of 100ml confiscated at the transit airport.

THE CURRENT STATE OF PLAY AT CHANGI (AS AT 24 NOVEMBER)

There are no restrictions on the carriage of liquids, gels and/or aerosols in hand-carry luggage for all flights departing from Changi Airport except the following restrictions, set out by the respective country/airline:

a. Passengers travelling to the US (either directly or via a stop-over in another country) or on US carriers (Northwest Airlines and United Airlines) are only allowed to carry travel-size toiletries (liquids, gels and/or aerosols) of 3.4 ounce (100 ml) or less in their hand-carry luggage. These travel-size toiletries must fit comfortably in one quart-size (1.1 litre) clear plastic zip-top bag. Passengers travelling on these flights should check-in liquids, gels and/or aerosols beyond the quantity allowed.

b. Passengers travelling on Air India or Air India Express flights are not allowed to carry liquids, gels and/or aerosols in their hand-carry luggage. Passengers travelling on these flights should check in all liquids, gels and/or aerosols in their checked-in baggage.

There are restrictions on hand-carry luggage for flights departing from airports in the European Union (EU) member states, Iceland, Norway, Switzerland, Canada and India. Hence passengers travelling to these countries to connect to another flight should take note of the following restrictions applicable to them when they depart from these airports:

c. EU member states, Iceland, Norway, Switzerland and Canada: Passengers are only allowed to carry liquids in containers of 100 ml or less in their hand-carry luggage when departing from airports in these countries. These containers must be packed in one transparent re-sealable plastic bag of not more than 1 litre in capacity.

d. India: Passengers are not allowed to carry liquids, gels and/or aerosols in their hand-carry luggage when departing from airports in India.

*SHOPPING AT CHANGI AIRPORT**

All passengers may proceed with their liquor and perfume purchases at Changi Airport as usual except the following:

a. Passengers travelling to EU member states, Iceland, Norway, Switzerland, Canada and India to connect to another flight

[Note: Passengers who end their flight in EU member states, Iceland, Norway, Switzerland, Canada and India are not affected by restrictions in these countries and can continue to make liquor and perfume purchases at Changi Airport.]

b. Passengers travelling to the US via a stop-over point

** Special Shopping Arrangement

c. To allow passengers departing Changi Airport on flights listed at paragraphs (a) and (b) of Section II to continue to purchase liquor and perfume, special arrangements have been made with the shops and airlines to facilitate these purchases without compromising the security requirements set out by the country/airline on affected flights.

Arrangements have been made for liquor and perfumes purchases to be brought directly to the gate holdrooms for passengers travelling on the following flights:

i. Singapore Airlines non-stop flights to the US (SQ38 to Los Angeles and SQ22 to Newark)
ii. United Airlines flights to Hong Kong (UA896) and Narita (UA804)
iii. Northwest Airlines flights to Narita (NW6)
iv. Air India flights to India (AI481 to New Delhi, AI473 to Mumbai and AI443 to Hyderabad)
v. Air India Express flights to Chennai (IX661)

To take advantage of the special arrangement, passengers travelling on the above flights must make their purchases at the shops at least one hour before the flight departure time. Passengers may collect their purchases immediately after clearing the security screening checks at the gate holdrooms.

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