Workshop addresses India's evolving market

Gavin Lipsith

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Presentations from low-cost carrier Air Deccan and Hyderabad International Airport were among highlights on the closing day of the India Duty Free Workshop

Air Deccan chief revenue officer John Kuruvilla explained how the low-cost carrier had "faced every issue to change the face of Indian aviation". The airline's route network connects several previously unserved regional airports, and Kuruvilla detailed the challenges the group had to overcome in establishing as well as its aim to "make air travel impulsive". The airline is funded by an innovative approach to advertising, he said. "We sell every space – headrests, luggage compartments and plane exteriors which can fetch half a million rupees. We are now negotiating with Harpic to advertise in the toilets."

Retail Management Solutions managing partner Paul Marks spoke for HIAL, detailing plans at one of India's forthcoming private greenfield airports, due to open in 2008. In the initial phase the airport will be capable of handling seven million passengers, with 2,350sq m of retail space in departures and a further 1,410sq m in arrivals. "We want to give potential retailers a blank piece of paper, and with that lots of information to help with their shop plans and proposed business model," said Marks.

India Duty Free Services CEO Deepack Talwar urged India's operators to steer away from their traditional reliance on liquor and tobacco to encourage growth in other categories. The inflight retailer began its concession with Jet Air a year ago and Talwar said that liquor and tobacco represents only 10% of its sales with the airline. "We like it that way," he said. "I believe an overemphasis on the categories is what drives the Indian customer away – it is not fair on the consumer, who aspires to more than liquor and tobacco."

The workshop closed with a vibrant interactive session summarising many of the themes addressed during the week, including the impact of privatisation, the need for a broader product offer and the role of lobbying.

A full report will feature in DFNI March 15 and on RavenFox.com.