Moscow Sheremetyevo has long been known as the international airport of Russia?s capital city. But with foreign arrivals at cross-town rival Domodedovo rising, and British Airways? recent decision to reroute its Moscow services to the airport, it may be time for a revolution. Gavin Lipsith speaks to operators at both facilities.

Estonia is in the next wave of nations due to join the European Union, with the EU now satisfied that the country?s economy meets the criteria for joining. And though the general outlook for business in the country is positive, EU membership brings challenges as well as opportunities for duty-free operators. By Jonathan Brown.

With its affordable prices, easy accessibility and Mediterranean summers, eastern Europe is rapidly becoming the destination of choice for western European tourists. And nowhere is the potential for tourism clearer than in Bulgaria. Jane Labous asks Sofia airport duty-free director Galina Trolieva about the location?s growing business.

The Baltic ferry market has long been buoyed by the savings operators can offer bargain-hungry shoppers. But as the EU prepares to expand, the business may have to adapt to a new reality. John Rimmer reports.

The expansion of the EU into eastern Europe will bring great changes to the duty-free market?not just for local operators, but also for the international companies that support them. Gebr Heinemann co-owner Claus Heinemann talks to DFNI about the challenges facing the region, and insists that the Travel Value slogan is about to become central to regional travel retailing after the expected abolition of intra-EU duty-free in many states.

Although some retailers are reviewing their commitment to duty-free operations, The Pen Shop is convinced that the channel is as vital as ever. By Jonathan Brown.

Falling passenger numbers and sales are presenting suppliers and retailers with huge challenges. The trick is to squeeze the maximum revenue from those passengers available, and one way is through high prices and high margins. But with some retailers reporting that the lower-priced ranges are performing best as nervous passengers seek value for money, how are the more expensive brands faring? Jonathan Brown reports.

Last month BAA completed the renovation of its shopping complex at London Heathrow terminal three. The results are spectacular and take retailing to a new level at the world?s biggest duty-free location. DFNI took a tour of the company?s new flagship operation.

By John Rimmer

The Airport Retail Study, which analyses the financial and physical performance of airport retail programmes, is fast becoming a must-read for commercial managers worldwide. In this article, written exclusively for DFNI, author Ivo Favotto examines how Beijing and Guangzhou airports measure up compared with other airports in the region.

TAIWAN. The results of the second phase of the tender for Taipei Chiang Kai-shek International airport terminal one are expected by the end of June.

RUSSIA. Moscow Domodedevo international airport is to open a new terminal for international travellers at the end of this month.

US. Duty-free retailer, wholesaler, agent and distributor Fairn & Swanson is eyeing further expansion to its border store operations in the US, both north and south.

Now that the effects of war in Iraq on the travel market are receding, and the threat of SARS is no longer accompanied by the widespread hysteria seen in recent months, the outlook for the trade for the rest of 2003 should be looking a whole lot brighter.

US. BAA USA has completed the redevelopment of the international terminal E at Boston Logan International airport, and unveiled an array of new retail and catering outlets.

SPAIN. Madrid-based duty-free and travel-retail specialist Aldeasa posted first quarter profits of Eu3m ($3.5m) this year, up from Eu2.73m ($3.2m) in 2002.

BULGARIA. As Bulgaria?s government prepares to draft a plan to close the country?s border duty-free stores, operators remain confident that the move will be blocked.

Interest is growing in this year?s sixth annual ASUTIL duty-free conference, to be held for the first time in Cancún, Mexico. The event, which takes place from September 3?5, marks South American duty-free association ASUTIL?s first venture outside the Mercosur trading area.

UK. Manchester airport is close to completing the £5.5m ($9m) upgrade of its terminal one retail and passenger areas. The first and second phases of the development have already opened.

ASIA/PACIFIC. Fragrances and cosmetics were the fastest-growing product categories by value across several leading Asian carriers in 2002, according to figures from Raven Fox Research and the forthcoming Duty-Free and Travel-Retail Database & Directory

MONGOLIA. SUTL Corp of Singapore has secured an exclusive supply contract for Mongol News Corp, which has been awarded an arrivals shop at Ulaan Baatar airport in Mongolia.

HONG KONG. In a big boost to travel retailers in Hong Kong and China, the World Health Organization (WHO) last month withdrew its warning against travel to Hong Kong and the southern Chinese province of Guangdong.

By Dermot LEBANON. Phoenicia Aer Rianta Co?s (PAC) new duty-free complex at Beirut International airport, where phase two of the development opened on May 14, begins a new era in Middle East duty-free retailing.

MALAYSIA. Duty-free contracts at Kuala Lumpur International airport (KLIA) are to be extended for two years from June as part of the government?s package of relief measures announced last month.

DENMARK. The Nuance Group has begun legal action against Copenhagen Airports in a bid to force a reduction of the operator?s concession fees at Kastrup airport.

ARGENTINA. Outgoing Argentinian president Eduardo Duhalde?s decision to agree to a series of new conditions for the country?s airport management concession, operated by Aeropuertos Argentina 2000 (AA2000), is facing opposition on several fronts.

FRANCE/SINGAPORE. Tax Free World Association (TFWA) will respond to the concerns of exhibitors about costs incurred through the cancellation of TFWA Asia Pacific after its Management Committee meeting on June 13.

SWITZERLAND. The Nuance Group recorded sales last year which were almost on a par with 2001, but earnings fell sharply for the second year running.

SWEDEN. SAS Trading president Patric Sjöberg has told DFNI that the retailer is not for sale, following the announcement by parent company SAS that it intended to divest some non-core businesses to cut costs.

PUERTO RICO. Alliance Duty Free, the concession holder at the Luis Muñoz International airport in the Puerto Rican capital San Juan, is putting the finishing touches to two new outlets to be opened this month.

ARMENIA. Airport operator and retailer Armenia International Airports has opened five duty-free shops at Yerevan Zvartnots airport under a new 30-year contract at the location.

By Dermot DavittCENTRAL/EASTERN EUROPE. Leading German travel retailer and wholesaler Gebr Heinemann is working with central and eastern European retailers to introduce Travel Value shopping as a replacement for duty-free once the trade is abolished as expected in some states next year.

By Dermot Davitt

By John Rimmer

By Gavin Lipsith

By Jane Labous

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