Relief for Auckland travel retailers as Air New Zealand eases stringent duty free restrictions – 04/09/06

NEW ZEALAND. Air New Zealand has eased a stringent crackdown on the carry-on of duty free purchases for US flights.

The national carrier banned all airport duty free items on North American flights from its cabins shortly after last month’s UK terror alert.

The airline, which has no inflight duty free programme, initially declined to offer gate delivery of duty free – a system swiftly adopted by Australian rival Qantas on its Auckland-US flights. This intransigence frustrated airport management, retailers and travellers.

However Auckland International Airport announced today that passengers travelling on Air New Zealand flights to the US are now permitted to purchase all duty free items at the airport, if the US is their final destination. Liquid and gel products (including liquor, cosmetics and fragrances) will be delivered to passengers in the gate lounge after security screening.

However, if passengers are travelling on an Air New Zealand transit Auckland-Los Angeles-London service, duty free will not be permitted. Air New Zealand has advised that this is due to the risk of confiscation while in transit in the US.

The crackdown had affected an average of five flights a day, less than 10% of international business out of Auckland, though one – NZ2, which transits from Los Angeles to London Heathrow – traditionally generates very high airport spending among passengers.

Auckland International Airport commented: “This means Air New Zealand passengers travelling to the United States of America as their final destination can receive their duty free purchases of these products in the gate lounge prior to boarding. The retail outlets authorised to sell duty free products within the terminal are Regency Duty Free [The Nuance Group – Ed] and DFS Galleria. Duty free sales will stop 90 minutes before departure for affected flights to allow for the additional processing.”

This system is in line with duty free processes for passengers travelling to the US on Qantas flights out of Auckland.

Auckland Airport Chief Executive Don Huse said the way that airport partners, particularly Air New Zealand and Qantas staff, the Aviation Security Service and duty free retailers, have implemented the process has been impressive.

“This focus on customer service has meant minimal inconvenience for passengers since new security requirements were introduced. We also thank passengers for their co-operation and understanding.”

COMMENT: Auckland International Airport, its retailers and the travelling public will all welcome this breakthrough though it is far from the perfect solution. Many Air New Zealand passengers to the US continue on after a change of planes to London so they will be unable to purchase. The 90 minute restriction allied with consumer uncertainty that gate delivery engenders will also affect sales negatively.

Just why Air New Zealand, locked in a dispute with the airport over aeronautical charges, has taken so long to assist the airport – and its own travelling consumers – is hard to fathom. Airport management have been diplomatic in their public utterances and Huse complimentary in his comments today – behind the scenes they, and their retailers, are likely to have been fuming.

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