Airline conference registration opens

Swiss travel retailer Weitnauer has completed the reorganisation of its management team in an effort to give more emphasis to its global operations.

When UK tobacco manufacturer Imperial Tobacco International acquired German rival Reemtsma in March and assumed the title of the world?s fourth-largest cigarette maker, it signalled its global ambitions. And it heralded a warning to tobacco?s big three. Gavin Lipsith examines the impact of the deal and gauges the industry?s reaction.

Tallink?s annual conference and forum for its business partners held on the Tallinn to Stockholm ferry route has become an institution for the Nordic markets and this year attracted over 200 guests. Online editor Trevor Lloyd-Jones was there.

The past few months have been tough for Swiss operator Weitnauer, which has faced challenges to its business in Europe, Asia and the Americas. But a management restructure will allow the company to focus on its core retail business, insists new ceo Frédéric Gauchet, who says a focus on profit rather than volume will drive its activities.

Amsterdam Schiphol airport?s See Buy Fly retail brand, which allows the airport to offer consistently competitive prices to all travellers, is unique in duty-free. Gavin Lipsith speaks to the man behind it, and asks about plans for development at Schiphol.

The World Health Organization?s proposed ban of duty-free tobacco sales is not the only threat to the sector. New EU regulations limiting where and how tobacco can be sold could be equally damaging to airport stores. KLM Tax Free Services cigarette buyer Ruud Schouten talks to Gavin Lipsith about the regulatory issues facing tobacco at Amsterdam Schiphol airport.

In a sector dominated by brands such as Marlboro and Camel, luxury cigarettes occupy a unique place in duty-free. Gavin Lipsith assesses the state of the luxury segment and finds out how important these products are to travel-retail.

DFNI gives some background on three of the brands now available.

The decision last week by Hawaii governor Ben Cayetano to veto legislation that would extend rent relief to airport operators comes as a severe blow to DFS Group and other troubled Hawaii concessionaires.

The relentless growth of the tourism industry is providing fresh hope that travel-retail can emerge quickly from the crisis that enveloped it after September 11.

US. DFS Group and other Honolulu airport retailers are facing a struggle to meet their guarantee payments after the governor of Hawaii vetoed a proposal to extend rent relief for their duty-free and duty-paid concessions. Emergency legislation after September 11 provided over $26m in relief for airport concessionaires, but this expired on April 30.

FRANCE. Aeroboutique Inflight Retail (AIR) has extended its contract to operate Air France?s inflight programme. The new six-year contract begins on July 1. AIR managing director Pierre Freyssinet told DFNI: ?This extraordinary length of contract shows both Air France?s and AIR?s willingness to invest in the medium term and to build an outstanding programme.?

SWITZERLAND. Following a wide-ranging review of its operations, and a series of senior managements changes, Weitnauer has committed itself to its ?core business of travel-retail? and pledged to become ?a major international player?. The group is aiming to raise the profile of the Weitnauer name at travel-retail locations worldwide.

US. A report by the Miami-Dade County inspector general has severely criticised Miami Airport Duty Free Joint Venture for violating the provisions of its duty-free agreement at Miami International airport. The criticisms centre on the participation of the four Disadvantaged Business Enterprises (DBEs) that make up 34% of the venture, which won the contract in 1995. The remaining 66% is owned by LVMH subsidiary Starboard Cruise Lines, which bought Greyhound Leisure Services two years ago.

BAHRAIN. Bahrain Duty Free is still reeling from the effects of the withdrawal of charter airlines from Gulf routes after September 11. But spend per passenger among those who are travelling has surged since the new duty-free complex opened late last year.

JAPAN. Operators at Japan?s second-busiest airport, Osaka Kansai, are hopeful that continuing negotiations at airport authority Kansai International Airport Co (KIAC) will herald a substantial increase in retail space at the location. Retailers have long blamed lack of space at the airport for holding retail back, and KIAC director duty-free Takao Matsunami acknowledged that the landlord is looking at ways to extend retail areas at the airport.

GREECE. Hellenic Duty Free Shops expects to sign a preliminary agreement by early next month to buy stakes in two Turkish border duty-free operators. A Hellenic spokesman said the company was in financial and legal due diligence to acquire 60% of a joint company, but would not confirm the names of the operators involved.

EUROPE. The region?s airports are reiterating calls for urgent support from governments to secure insurance for their operations. Since September 11 demands for higher insurance premiums against the risk of war and terrorism have led to a crisis among airports worldwide.

JAPAN. Despite the encouraging performance of the Japanese football team, the World Cup has given the country?s duty-free operators little to cheer.

UK. Airports group TBI believes that travel by air has changed forever after September 11. The UK group, which operates London Luton, Belfast and Cardiff International airports, forecasts continued strong growth among low-cost carriers, as well as consolidation among charter airlines and national carriers.

UAE. Abu Dhabi Duty Free has opened a new boutique in its Designer Collection at Abu Dhabi International airport. The outlet is for the Francesco Smalto brand, targeting the men?s market.

Liquor supplier Angostura, best known for its bitters, is rolling out its two premium aged rums into duty-free following a promising launch on the US domestic market.

The liquor category is still failing to attract spend among Japanese travellers, according to the country?s biggest duty-free retailers.

Scotch whisky Old Fettercairn has been given a makeover in a bid to raise its profile in the malt whisky sector.

The Canadian government is to increase taxes on domestically-produced tobacco in the country?s duty-free outlets yet again.

Development of the tobacco sector at Amsterdam Schiphol airport is being held up by uncertainty surrounding new local legislation.

High-end lingerie brand La Perla is planning the launch of a new fragrance line in European domestic markets in September, followed by roll-outs in duty-free in spring 2003.

Both YSL Beauté brands Van Cleef & Arpels and Oscar de la Renta have introduced light, summer fragrance versions to tempt holiday consumers.

Elizabeth Arden is continuing its aggressive programme to turn the brand around with the unveiling of its new fragrance for women, ardenbeauty.

Italian beauty house Pupa aims to increase sales in Asia/Pacific in 2002 by 80% compared with 2001.

A stand-alone Biotherm boutique opened last month at Hong Kong International airport, the brand?s first venture in Asia/Pacific travel-retail.

Clarins has launched a men?s skincare line, inspired by the loyal male following for its women?s skincare products including Eau Dynamisante, Gentle Foaming Cleanser and Eye Contour Gel.

Masterfoods International Travel Retail (MITR) is planning a series of in-store trials that could steer retailers (and manufacturers) towards some firm conclusions on the contentious subject of how children?s gift confectionery should be displayed in duty-free outlets.

Cadbury Global Commercial (CGC) has broadened its research programme to include customer and consumer studies in Australasia and the Americas, following extensive work with World Duty Free in the UK.

Genesis Distribution has started rolling out its Looney Tunes added-value Funbook confectionery after showing it at the TFWA Asia Pacific show in Singapore.

Austrian luxury gifts group Swarovski is determined to diversify and capture new, younger consumers, without neglecting its traditional collectible business.

The company aims to serve and interact with customers?and reach prospective clients?much more efficiently.

Bvlgari has launched a series of watch collections to travel-retail markets worldwide.

UK-based distributor Crexbourne plans to develop new watches under the brand name Montine, which will be designed specifically for the duty-free and travel-retail markets.

Fine jewellery sales have slumped at Vienna airport, according to incumbent retailer The Nuance Group. The fall in sales can largely be attributed to the decline in passenger numbers from eastern Europe and Asia.

Hugo Boss is to intensify efforts for the rest of this year and into 2003 to develop the Chinese market, already one of the biggest for the company.

Last year the company stopped its ready-to-wear and accessories licence distribution with its Japanese partner of 26 years, Onward Kashiyama, in line with a repositioning of the brand.

Network Partners has secured space for two large Parah boutiques at Italy?s two main gateway airports?Rome Fiumicino and Milan Malpensa.