Cochin pins revenue growth aims on duty-free

Gavin Lipsith

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The airport hopes that its duty-free operation will soon account for 40% of total airport revenues

Cochin International Airport Limited (CIAL) is hoping to attract new airlines by reducing landing charges with the help of its growing duty-free business. Speaking at the Gate One2One conference at the TFWA Asia Pacific show earlier this month, CIAL general manager commercial V Suresh Babu reported that duty-free revenue at the Kerala airport accounts for 30% of total airport revenues at present, and that the airport hopes to grow that figure to 40% with planned changes to the airport layout.

Babu said: “We want to be the first airport in India with no landing charges…Indian airports on average generate 70% of revenues through aeronautical operations and 30% through non-aeronautical operations. At Cochin we generate 42% through non-aeronautical. We have identified three areas to grow non-aeronautical revenue, of which duty-free is one. We are aiming to increase dwell time by redeveloping the airport layout, and to expand the area devoted to duty-free.”

Alpha Asia operates the duty-free business at Cochin under the Alpha Kreol fascia, through a management contract with CIAL. Alpha Asia managing director Paul Topping told DFNIonline that the business has been achieving “phenomenal” growth as a result of extending its product offer and improving customer service. He also attributed growth to the big space CIAL had given the retailer. Alpha Kreol grew sales by over 40% last year, while traffic at the airport grew by about 25%.

Cochin is the fourth biggest airport in India, behind Mumbai, Delhi and Chennai, and was the first greenfield airport operated by a private company in India.