Authority rejects ITDC bid for rent relief

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The Airports Authority of India (AAI) has rejected a request from India Tourism Development Corporation (ITDC) for a reduction in duty-free concession fees for its outlets at major airports, according to local reports

ITDC had argued that passenger traffic has declined after September 11, depressing sales by around 14%. ITDC's plea was supported by tourism minister Jagmohan who had taken up the issue with civil aviation minister Shahnawaz Hussain at the time of New Delhi airport's shopping or "Teej" festival and the opening of new ITDC shops in July. ITDC has begun to pay its outstanding rents according to an airport source.

At the same time as declining passenger traffic, the total concession fee due to AAI from ITDC for the year 2002-03 has reportedly risen to around Rs360m ($7.4m) as per recently signed agreements between the two public sector organisations.

More recently ITDC has experienced a revival in sales. During October 2002 ITDC duty-free revenes amounted to Rs83.4m ($1.7m) setting a monthly record for the duty-free division. One reason for the expansion is the round of price rationalisation started earlier this year (TRW 02/05/02) bringing local duty-free prices into line with the Gulf and other destinations of Indian travellers. Renovations at Delhi and more recently Mumbai airport outlets, and the opening of new chocolate and wine shops and touch-screen kiosks also had an effect.