Crisis update: Transport Canada toes hard line as retailers pay the price – 17/08/06

INTERNATIONAL. Civil aviation authorities around the world are gradually easing the rules on hand luggage allowed into aircraft cabins following last week’s UK terror alert. Duty free purchases, including liquor, fragrances and cosmetics, are now allowed on flights departing most countries, with the exception of US-bound flights.

But there is one notable exception: Canada. Although retailers are technically still allowed to purchase all duty free categories, Transport Canada has refused to allow any liquids on board any flights, including those purchased airside in Departures at the country’s airport duty free shops.

The effect has been devastating on retailers such as The Nuance Group and Aer Rianta International, which claim that sales have plummeted by up to -75% in the past week. According to local reports, the first layoffs have already occurred at Canada’s duty free shops as a result.

The Greater Toronto Airports Authority said yesterday: “Some duty free stores [operated by Nuance-Ed] have chosen to close due to the restrictions directed by the Government of Canada. At least one duty free store remains open in each section of each terminal.

“The Greater Toronto Airports Authority continues to work closely with the federal government to minimize disruptions to the travelling public. Operational delays have been minimal at Toronto Pearson.”

While airlines departing from Canada are allowed to sell duty free products onboard, airport retailers continue to have their hands tied, writes Wendy Gallagher.

Vanessa Vermette, spokesperson for Transport Canada, told the Moodie Report that Canada’s ban on sale of liquids from airside stores is a topic of “daily discussion” with airport authorities.

Vermette said the issue is still “a question of access (of liquid) to passengers” in which “the substance could be a threat.” Duty free products sold onboard are only being delivered to passengers after the plane has reached its destination, claimed Vermette.

“We’re aware of the pressure” that airport authorities are putting on Transport Canada to ease up on the regulations, she added. And she hinted that by the end of the week, there could be a loosening of the restrictions. That cannot come a moment too soon for airport duty free operators across Canada.

LATEST DEVELOPMENTS

Frankfurt Airport eases restrictions to all destinations

Frankfurt Airport has relaxed restrictions on duty free purchases, which previously affected US flights and at one stage, British Airways flights to the UK.

Frankfurt Airport said today: “On flights to the US, the ban on duty free liquids such as alcohol and cosmetics has been abolished, depending on airline regulations. As there are no restrictions for flights to other countries, passengers can continue to enjoy a shopping spree at Frankfurt Airport’s 17 duty free and Travel Value shops and take advantage of great bargains before their flight.”

Qantas permits duty free purchases on board UK and some US flights

Australian carrier Qantas today reviewed its rules to allow duty free purchases on UK-departing flights, and on US flights at the discretion of cabin crew.

Previously, no liquids of any kind were allowed on board and Qantas had asked passengers not to buy duty free at London Heathrow Airport. In an important change, Qantas said today on its website: “Once customers have passed through the airport security checkpoint in London, goods, including liquids and gels, can be purchased and taken on board the aircraft.”

On US flights, duty free purchases made before security are not allowed. But, adds Qantas: “At some airports duty free purchases may be permitted after passengers have passed through the airport security checkpoint.”

However, it asks passengers to refer to Qantas staff at check-in for the most up to date information.

MORE STORIES ON THE AIRPORT RETAIL CRISIS

Crisis update: TSA issues new duty free guidelines; Canada’s turmoil; HKIA initiatives – 16/08/06

Crisis update: APTRA speaks out; “˜Modest impact’ – Lauder analyst; Nuance Canada raises compensation issue; Changi sales dip -7% – 15/08/06

Crisis update: Interbaires forced to introduce gate delivery for duty free on US flights – 14/08/06

Mark Riches welcomes overnight improvements in UK terror alert – “˜almost business as normal’ – but calls for lessons to be learned – 14/08/06

Crisis update: Breakthrough as UK terror alert downgraded – 13/08/06

Duty free industry woes intensify amid terror alert; Dominican Republic stops sales; BA withdraws service; InterBaires hit – 11/08/06

Canada and US react to UK terrorist drama with duty free limits on flights – 10/08/06

UK duty free and airports in turmoil as “˜plot to bomb planes’ foiled – 10/08/06

Food & Beverage The Magazine eZine