Indian retail industry: Airport retailing

Abstract

Airport Retail is the next step of airport privatization. It is on a growth part world over. Airline industry goes through many fluctuations, thus it makes sense for airport to depend on non aeronautical revenues more and more. This trend has had such a effect that many major airports are now known for their commercial facilities (such as Singapore Airport). India has one of the highest growth rates in the world as far as air traffic goes. At the same time it charges one of the highest aeronautical fees. Thus there is a need of alternate revenue stream for airports. This can happen through airport retailing. It has already started in some of the newer airports such as Bangalore airport however it has a long way to go. There is a need for more systematic approach towards this which can help India build world class airports which not only serve their basic purpose but also act as ‘Airport City’.