welcome the moodie report 7 days writes martin moodie · ©the moodie report 7 days is published by...

FAST FACTUAL FREE

copyThe Moodie Report 7 Days is published by Moodie International All rights reservedPlease send any comments or stories to MartinTheMoodieReportcom

ldquoEven if Heinemann is a biginternational company they haveshown in their existing locationsthat they can focustheir attention onlocal goods Thatflexibility wasimportant to usrdquoBologna AirportDirector of Non-Aviation BusinessStefano Gardinisays Gebr Heinemann will add avital Sense of Place to the offer asthe Hamburg-based companymakes its retailing debut in Italy

ldquoThe outlook for 2011 ismoderately positive We are alsoready thanks to our solid financialstructure to take upany developmentopportunities thatmay ariserdquo AutogrillChairman GilbertoBenetton takes acautiously optimisticapproach to theyear ahead afterhis company reveals solid 2010financial results aided by a strongperformance from the travel retaildivision

ldquoAs traditional economic sectorslose dynamism a second wave ofservice sectors including tourismare emerging Andthese will be someof the mostdynamic andeconomicallysignificantindustries anddevelopmentagents of thisdecaderdquo After a buoyant 2010UN World Tourism OrganizationSecretary-General Taleb Rifaisays that ldquothe decade of traveland tourismrdquo has arrived

FRIDAYSATURDAYSUNDAYMONDAYTUESDAYWEDNESDAYTHURSDAY 10 MARCH 2011DaysThe Week in Travel Retail

Issue387

This photo of one of theCTC-ARI Olympiansparticipating in lastweekendrsquos MoodieMulti-National Marathonat Larnaka Airportcaptures the marvellousindustry commitment(and in this caseconsumer engagement)of the uniquefundraising event

QUOTES OF THE WEEK

WELCOME to The Moodie Report 7 Days writes Martin Moodie This columnrsquosfocus is on an extraordinary pan-industry event that took place last weekend ndash TheMoodie Multi-National Marathon If anyone ever doubted that travel retail has acollective spirit then the success of the event would have killed the thought foreverWhat an occasion All around the travel retail globe runners walkers and supporterstook part in their hundreds to support industry project Hand in Hand for Haiti

As I write some US$153447 has been raised through the dedicated Marathon websitewhile much more on top has been channelled direct to wwwHandinHandforHaiticomAmazing As I noted on my Blog perhaps the most pleasing element about theMarathon was the way it reached beyond executive management level and right to theshop floor of our industry

In the past few days wersquove received scores of photos of retail staff participating in the runacross a myriad of locations In Cyprus the six-person CTC-ARI Olympians team (whoran on a treadmill in the heart of the airside commercial area) generated extensivenational television coverage while also attracting enormous interest and engagementfrom passengers at the airport Thatrsquos travel retail being cast in the best possible light

The depth of industry buy-in is particularly important for a critical reason While therehave been several successful travel retail industry fundraisers in the past (notably theAlpha Tsunami appeal) the industry has never taken responsibility for the ongoingrunning of a project The school the Lyceacutee Jean-Baptiste Pointe du Sable (which opensin September in Saint Marc Haiti) will effectively be lsquoownedrsquo by the travel retail industrythrough the Hand in Hand for Haiti Foundation The industry will keep its hand on thehelm via directors Ed Brennan (DFS Group) Olivier Bottrie (Esteacutee Lauder) and me

The school is not something therefore from which the industry can walk away and sayldquoJob well donerdquo It will have financing needs for years to come and the Foundation isworking with industry leaders to secure those For those of you who question why fundsare still being raised for this project therersquos your answer Via The Moodie Multi-NationalMarathon big steps have been taken both figuratively and literally to advance the cause

A simple perhaps optimistic idea just a few months ago somehow mushroomed into awonderful expression of industry involvement compassion and solidarity From CEOs toretail staff and back-office workers travel retail stepped out in style last weekend I thankeach and every one of you

Image of theWeek

Thursday 10 March 2011The Moodie Report 7 Days

Page 2copyThe Moodie Report 7 Days is published by Moodie International All rights reservedPlease send any comments or stories to MartinTheMoodieReportcom

GERMANY Five new outletsopened this week in Frankfurt Airportrsquosnon-Schengen Pier B all located airsidein the international departures andtransit zone

Among the outlets is a large multi-brandfashion unit operated by GebrHeinemann and spanning 440sq mAmong the brands available in the storeare Hugo Boss Boss Orange Paul ampShark Lacoste Tommy Hilfiger and

travel-oriented apparel label Napapijri The store is described as open and inviting and features clothing shoesleathergoods and accessories for both sexes

A new 27sq m Swarovski boutique has also opened in Pier B showcasing the Austrian costume jewellery and giftsbrandrsquos new Crystallized concept in its striking white livery A full range of jewellery watches and Swarovski crystalfigurines is available (pictured)

Dutch electronics retailer Capi International has opened a 160sq m store in the zone offering a range of leading brandsacross all product sectors including cameras camcorders and mobile phones Finally Lagardegravere Services subsidiary HDSRetail Deutschland opened two new stores in Pier B this week A new Virgin store covering 109sq m is the retailerrsquossecond such outlet at Frankfurt and offers books press DVDs and CDs HDS Retail has also opened a 115sq m HubConvenience store offering sandwiches snacks and beverages plus a range of newspapers magazines souvenirs andcigarettes

Frankfurt Airport described the international departure and transfer area of Pier B as ldquoone of the airportrsquos most sales-intensive retail areasrdquo thanks to a high level of footfall and an affluent passenger profile The pier features two largeHeinemann duty free stores and luxury brands such as Hermegraves and Christ and growing accessories brand Shanghai Tang

ITALY Gebr Heinemann celebrated its debut as an operator in the Italian airport retail market on 3 March as theHamburg-based retailer and distributor officially opened two stores at Bologna Guglielmo Marconi Airport Theretailer was selected to operate the 10-year concession late last yearafter a tender process in which the airport received 12 expressions ofinterest

Under its Travel Value amp Duty Free fascia Heinemann ndash through newsubsidiary Regal GH Italiana ndash now operates two stores at Bolognaone in the Non-Schengen boarding area (120sq m) and one forSchengen passengers (100sq m) The stores which offer liquor tobaccofragrances amp cosmetics confectionery and fine food will be phased outduring a full renovation of the terminal at Bologna during which thelandside area will be considerably reduced to create more space airside

Scheduled to be complete by late 2013 the project includes the creationof two large walk-through stores covering approximately 900sq m in total

Bologna Airport President Giuseppina Gualtieri said ldquoWe are verysatisfied to have such an important international operator launching itsItalian operations at our airport This agreement refers to importantresults achieved by the airport in 2010 with traffic growth of +153equivalent to double the average increase of Italian airports This isfurther evidence that our airport the fourth in Italy for globalconnectivity has acquired a new relevance beyond national boundariesand that our passengers provide an interesting market for the mostimportant operatorsrdquo

Moodie Interactive Click for the advertiserrsquos website

THE MOODIE REPORT 7 DAYS BUSINESS NEWS



Bologna Airport Director ofNon-Aviation BusinessStefano Gardini added ldquoWebelieve one of Heinemannrsquosmost important strengths is itscapacity to anticipate to seeinto the future with regard tocustomer trends They haveproved that they can adapt tochanging passenger behaviour

ldquoWe are [also] fortunate atBologna to be located in awonderful region home tobrands and products that arewell known all over theworld I am convinced thatwe can significantly improvesales of regional food forexample Even if Heinemannis a big international companythey have shown in their

existing locations that they can focus their attention on local goods That flexibility was important to usrdquo

Gebr Heinemann Co-Owner Claus Heinemann said ldquoWe believe Bologna has great potential both thanks to the natureof its customers and its growing traffic and because the airport is willing to invest From our side we have the know-howand the purchasing power to guarantee good prices we have strong logistics and IT and our marketing team will be atBolognarsquos disposal to increase spend per head and penetration We believe we can improve the shopping here dramaticallyrdquo

More details and images appear at wwwTheMoodieReportcom

SINGAPORE DFS is to host its first ever Master of Spirits event in March for connoisseurs and collectors offine spirits at Singapore Changi Airportrsquos elite CIP Terminal

The exclusive invitation-only event comprises a series of private branded dinners and a gala event presenting wineChampagne and spirits enthusiasts with the opportunity to purchasesome of the worldrsquos finest spirits

Dubbed by the leading luxury travel retailer as a world first the eventfeatures an extensive range of products coupled with a once-in-a-lifetime opportunity to mingle with some of the worldrsquos finest distillersand craftsmen

DFS Worldwide President of Operations Michael Schriver said DFSrsquospartnership with Changi Airport Group would help take the event togreater heights

ldquoWe are extremely pleased to have the full support of our valuedpartners to host such a world-class spirits and wine eventrdquo he enthused

DFS President of Merchandising Harold Brooks added that invitedguests could expect world-class treatment and that the event wouldembody the intrinsic values of DFS ndash that of luxury exclusivity andhigh quality merchandise

ldquoFrom the very moment guests arrive to the moment they leave theywill be immersed in an experience like no other in the fine spiritsmarketrdquo said Brooks ldquoFrom exquisite dining to quality entertainmenttheir needs will be well catered forrdquo




TAIWAN Leading duty freeretailer Tasa Meng unveiled a JohnnieWalker boutique called The Collectionat Taoyuan International Airport lastmonth (pictured left)

Under the same name Tasa Meng hasalso opened a Johnnie Walker Bluelounge catering to its VIP customersThe lounge offers free sampling of thewhole Johnnie Walker portfolioincluding a full lsquomentorshiprsquo serviceallowing consumers to betterunderstand Scotch whisky ldquoThis istruly the first of its kind in AsiaPacificrdquo said the company

Taiwan witnessed a double-digitgrowth in visitor arrivals in 2010 and amore than two-fold increase in arrivals

from Mainland China That momentum is set to continue this year and through 2012 when restrictions on mainlandtravellers are to be relaxed further

Tasa Meng noted ldquoTaiwan is set to receive more and more tourists from Mainland China These consumers have highspending power and it is imperative that a full mentorship programme on the super-deluxe category is conductedrdquo

UK Harding Brothers the leading UK-based cruise retail concessionaire has signed an exclusive supply agreementwith Gebr Heinemann for all liquor and tobacco products for the companyrsquos European cruise concession business Thecontract which is effective from April was negotiated by Heinemannrsquos UK majority-owned subsidiary Heinemann-Scorpio International Holdings which will manage the business locally

Gebr Heinemann will supply Harding Brothersrsquo Bristol warehouse from its distribution centre in Allermoehe It is thethird contract that Heinemann has secured in the UK since thepartnership with Scorpio was completed in late 2007 Currentagreements include the exclusive supply contract for all productcategories at Guernsey International Airport

Harding Brothers Purchasing Director Trevor Moore said ldquoThis newcontract has been under discussion for a while and is part of ourgeneral programme of increased efficiencies and buying strategieswhich we are continuing to implementrdquo

Heinemann-Scorpio International Holdings Managing Director StuartMcGuire added ldquoWe are delighted to have secured this contract onHeinemannrsquos behalf Harding Brothers are the major cruise line retailerand concessionaire in the world and are established as class leadersHeinemannrsquos reputation for fulfilment and category management isfirst class

ldquoThe contract and partnership is built on these strengths and we arevery much looking forward to building a strong relationship togetherespecially as Harding Brothers continues to grow over the next few years

ldquoWe will continue to look at exclusive supply contracts in the UK andelsewhere where it is in both partiesrsquo interests to work together for longterm growthrdquo


THE MOODIE REPORT 7 DAYS TENDER amp CONTRACT NEWS



CANADA Duty free sales at Canadarsquos airports rose +13 to C$17 million (US$174 million) in January 2011 Thesame month saw Canadian land border duty free sales fall -037 year-on-year to C$7 million (US$72 million) Thefigures were provided by the Canadian Border Services Agency and released by the Frontier Duty Free Association

Regional sales figures ndash Land border storesn The Prairie region for January 2011 saw sales of approximately C$605000 (US$624000) ndash a year-on-year decrease

of -288n The Pacific region sales figure was C$129 million (US$133 million) ndash an increase of +1133 compared to January

2010n Ontario recorded total sales of C$396 million (US$4 million) in January 2011 a -40 decrease in sales compared

to the previous yearn The sales figure for AtlanticQuebec for January 2011 was C$125 million (US$128 million) a rise of +266

compared to January 2010

INTERNATIONAL Buoyed by a strong performance from itsTravel Retail amp Duty Free division Autogrill has reported revenuegrowth for 2010 of +71 to euro5703 million (+45 at constantexchange rates) and a +73 rise in EBITDA year-on-year to euro6054million (+44 at constant rates) Net profits climbed to euro1034million compared to euro37 million in 2009

The group said ldquoIn 2010 Autogrill posted positive income andfinancial results showing an improvement on the previous year in aneconomic scenario in which increases in international trade and travelpointed to recovery Albeit unevenly the year was marked by a recoveryin traffic in the airport channel which showed faster growth thanmotorwaysrdquo

ldquo2010 was an important year for our group a year in which we focusedour business portfolio on the two sectors where we enjoy leadershipfood amp beverage and travel retail and produced good resultsrdquo saidAutogrill Chairman Gilberto Benetton

ldquoThe outlook for 2011 is moderately positive We are ready also thanksto our solid financial structure to take up any developmentopportunities that may ariserdquo

THE MOODIE REPORT 7 DAYS GENERAL NEWS


INTERNATIONAL The airline industryrsquos profitability will be sharply hit by rising oil prices in 2011 accordingto the International Air Transport Association (IATA) The industry body downgraded its airline industry outlook for2011 to US$86 billion in profits from the US$91 billion it estimated in December 2010

This is a -46 fall in net profits compared to the US$16 billion (revised from US$151 billion) earned by the industryin 2010 On expected industry revenues of US$594 billion the US$86 billion 2011 profit equates to a net profit marginof 14

IATA Director General and CEO Giovanni Bisignani said ldquoPolitical unrest in the Middle East has sent oil overUS$100 per barrel That is significantly higher than the US$84 per barrel that was the assumption in December At thesame time the global economy is now forecast to grow by +31 this year ndash a full 05 percentage point better thanpredicted just three months ago But stronger revenues will provide only a partial offset to higher costs Profits will becut in half compared to last year and margins are a pathetic 14rdquo

Full highlights and region by region forecasts appear at wwwTheMoodieReportcom

THE MOODIE REPORT 7 DAYS RETAIL amp COMMERCIAL SALES RESULTS



Travel Retail amp Duty FreeThe Travel Retail amp Duty Free business generated revenues of euro16757 million up +9 (up +7 at constant rates) on2009 with ldquogood performancerdquo at the main airports where the group operates The result was achieved despite adverseweather conditions and prolonged strike action that impacted negatively on air traffic in Spain and the UK

Business in UK airports grew +108 (+67 at constant rates) against a +31 decrease in traffic This growth wasdriven in particular by good performance by points of sale at Heathrow Airport up +92 against a slight decline intraffic of -03 Revenues in Spanish airports rose +4 outstripping the +27 growth in traffic thanks to strongperformance above all at Barcelona (up +237) and Madrid (up +57)

Revenues in the Rest of the World were up +11 (also at constant rates) reflecting good results in all the grouprsquosairports and especially in Canada (thanks to new connections with Asia) Mexico Chile and Jordan

EBITDA in this business in 2010 was up +234 (+212 at constant rates) to reach euro1936 million against 2009 Theresult for 2009 however had benefited from euro75 million of ordinary income referring to prior years The increase in theEBITDA margin from 102 to 116 reflects an improved sales mix in European airports synergies generated bybusiness integration and the containment of operating costs

Investments amounted to euro28 million up +282 on 2009 and werechannelled mainly into new locations in the Spanish airports of MaacutelagaMadrid and Ibiza point of sale renovation at Heathrow Birminghamand Manchester in the UK and locations in Vancouver Canada

Food amp BeverageSales in the Food amp Beverage sector in 2010 amounted to euro40278million up +64 (+34 at constant rates) on 2009 This result reflectsboth the performance in US airports outstripping the traffic growthrate and results on Italian and French motorways Railway stationbusiness benefited from new openings in Italy and Belgium

Sales in US airports rose +47 on a like-for-like basis against a +17increase in passenger traffic thanks to a recovery in business-class tradeand in air traffic in general especially from September on

EBITDA in the Food amp Beverage business amounted to euro4389million up +12 (down -17 at constant rates) on 2009 a year thatbenefited from euro38 million of ordinary income referring to prior yearsThe ratio to revenues moved from 114 to 109 The result waspenalised in particular by the increase in labour costs Italy and the USand start-up costs in new locations opened in Europe

Autogrill travel retail and duty free performance Q4 and full year 2010

Q4 2010 Q4 2009 Change Change1 FY 2010 FY 2009 Change Change1

euro million euro million current FX constant FX euro million euro million current FX constant FX

Europe 3197 2939 +88 +53 12789 11830 +81 +57Spain 1157 1076 +75 +75 4938 4746 +40 +40UK3 2040 1863 +95 +40 7851 7084 +108 +67

Rest of the World 879 786 +118 +144 3522 3174 +110 +110Airports 4076 3725 +94 +71 16311 15004 +87 +68Other2 116 148 ndash221 ndash222 446 377 +184 +177Total sales 4192 3873 +82 +60 16757 15380 +90 +70EBITDA4 491 422 +162 +137 1936 1569 +234 +212

on sales 117 109 116 102Capex 145 35 3147 3487 280 218 282 259

on sales 35 09 17 14

1 Data converted using FX 2010 rates 3 2009 figures adjusted to exclude B-t-B sales2 Includes PampM and B-t-B sales 4 FY2009 EBITDA includes euro75m of one-off income Source Autogrill



Outlook for 2011On the basis oftwo possiblescenarios (bestcase and worstcase) for trafficgrowth andeconomic trendsconsolidatedrevenues in 2011are expected to bebetween euro5800million andeuro5900 millionwith EBITDAbetween euro610million and euro640million

In the first eightweeks of 2011revenues were up+27 at constantrates on the sameperiod in 2010

The disposal of the Flight business at the end of 2010 together with substantial cash generation (euro2725 million up+194 on 2009) appreciably strengthened the balance sheet and made it possible to bring the Grouprsquos financialindebtedness down to euro15755 million

Further details appear at wwwTheMoodieReportcom

SOUTH KOREACosmetics and liquor were the twotop-selling product categories onboard Korean Air in 2010 as thecompany hit US$2017 million insales

Cosmetics accounted for 38 ofthe business or US$762 millionan increase of +14 on 2009figures

Liquor posted sales of US$565million up +25 accounting for28 of the airlinersquos sales in theyear

Watches (2 of sales) posted thehighest growth of any category at+43 year-on-year while productsunder the broad lsquoHealthcarersquo

category (7 of sales) climbed by +31 Fragrances and fashion each of which accounted for 6 of sales also registeredhealthy increases at +17 and +19 respectively

JAPAN Driven by a new inflight programme and rising passenger numbers All Nippon Airways (ANA) reported a+10 increase in inflight sales revenues in 2010 compared with 2009 Inflight sales amounted to approximately yen3 billion(US$364 million) in calendar 2010 said Daisuke Fujioka Senior Manager Marketing Retail Sales of ANA Trading

Autogrill FampB business breakdown by region 2010

Source Autogrill

7

3

11

33

45

1

nn North America nn Italynn France nn Switzerland

nn Other EU countries nn Rest of world

Autogrill travel retail amp duty free business breakdown by region 2010

Source Autogrill

5

7

5

31

47

5

nn UK nn Spainnn North America nn South Americann Middle East nn Rest of world

Korean Air sales by category 2010 vs 2009

Category 2010 2010 2009 2009 ChangeAmount ($) Share Amount ($) Share on year

Pre-order 2876000 1 2740000 2 +5Healthcare 13647000 7 10381000 6 +31Electronics 6774000 3 6000000 4 +13Watches 4446000 2 3119000 2 +43Perfumes 11279000 6 9671000 6 +17Cosmetics 76199000 38 66712000 38 +14Fashion amp accessories 12412000 6 10408000 6 +19Pearls 1349000 1 1345000 1 0Chocolates 8667000 4 7586000 4 +14Writing instruments 4238000 2 3748000 2 +13Gifts 3241000 2 2777000 2 +17Liquor 56524000 28 45104000 27 +25Cigarettes mdash mdash mdash mdash mdashTotal 201652000 100 169597000 100 +19

Source Korean Air


The airline launched its new Inspiration of Japan inflight programme in May 2010 built on market segmentationFujioka told The Moodie Report In addition to its duty free offer (Show Case) ANA introduced two ranges Wish andOmotenashi to target loyal customers and first-classbusiness-class passengers

International passenger growth in 2010 of +10 also contributed as bookings recovered after 2009rsquos H1N1 virus scareand business travel to Asia rebounded

Further stimulus came from Haneda Airportrsquos expanding international services from 21 October 2010 which furtherdrove passenger growth ANA added routes from Tokyo Narita to Jakarta in January and Haneda to Manila at the endof February

ANA Trading expects at least +10 expansion in inflight sales in 2011 based on continued strong passenger growth


THE MOODIE REPORT 7 DAYS DATA ROOM ndash PASSENGER TRAFFIC NEWS

ASIA PACIFIC The Pacific Asia Travel Association (PATA) has announced its forecasts of travel demand for42 destinations within the Asia Pacific region predicting an annual average rate of growth in arrivals to thesedestinations of just under +7 between 2009 and 2013

Asia is expected to receive much of this growth with an average increase of around +75 per annum The sub-regionof North America will average around +5 and the Pacific between +4 and +5 over that period Within Asia thefastest growing sub-region will be Southeast Asia with just over+ 8 followed by South Asia with around +75 andNortheast Asia at just over +7

Around 15 source regions will generate double-digit growth into Asia Pacific over the period to 2013 with intra-Asiatraffic fuelling annual gains of around +75 and adding more than 76 million additional arrivals to Asia by 2013 Thekey sub-regions will be South and Central Asia into Northeast Asia (predicted to climb by +17 and +14 gains perannum respectively) as well as the Middle East (+10)

In volume terms Northeast Asia and the Americas will generate the highest additional traffic to Asia Pacific NortheastAsia will add an additional 65 million arrivals to Asia Pacific destinations by 2013 while North America will add closeto 18 million more than in 2009

This will all be largely intra-regional growth said PATA Long-haul traffic from Europe to Asia Pacific will also besignificant said PATA adding more than 87 million arrivals to the Asia Pacific region by 2013 though Europesrelative market share will dip as Asian source markets rise in dominance A similar scenario can be seen for theAmericas even though the volume of arrivals from that region is increasing in relative terms the share of trafficgenerated from the Americas will decrease by 2013

PATA Deputy CEO and Head Office of Strategy Management John Koldowski said ldquoThis shift in source marketscarries a significant number of issues for operators in the region Many of the long-haul markets have relatively longerlengths of stay therefore any decrease in arrivals from these sources even though relative will be felt in terms of nightsbooked and of quite possibly yieldrdquo he added ldquoThat said however it must also be recognised that the new wave of Asiantravellers are surprising many operators in terms of their increasingly sophisticated demands and their ability to expectand pay for the very bestrdquo concluded Koldowski

THE MOODIE REPORT 7 DAYS TRAVEL amp TOURISM NEWS

UK UK airports handled 210 million passengers during the 2010 calendar year a fall of -34 (or 74 million) on2009 according to figures published by the Civil Aviation Authority (CAA) Passenger numbers have now fallenconsecutively for three years to a level lower than in 2004 With last yearrsquos ash cloud industrial action and weather-related problems among the key factors there were significant year-on-year falls in January April May and December

CAA Director of Regulatory Policy Iain Osborne said ldquoThe UKs fragile recovery is not yet driving increases inpassenger numbers Although the decline in business travel levelled out last year leisure travel continued to fall in 2010Without the yearrsquos exceptional events with snow strikes and volcanic ash all affecting aviation passenger numbersoverall would likely have been level with 2009



ldquoAlthough airports in the South East ofEngland were less affected airports inthe rest of the UK saw significant fallsin passenger numbers with some nowfacing financial challenges as a resultAirlines have in the main coped wellwith unprecedented drops in passengernumbers increasing load factors andsustaining margins where possible

ldquoOverall the outlook for aviation is stilluncertain A return to robust economicgrowth should see increased passengernumbers but this will be affected byother costs that bear on the sector suchas high oil prices and taxation and bythe availability of capacity Congestionin the South-East could also see morecustomers flying from regional airportsor via other European hubs to travel toor from the UKrdquo

The decrease in passenger numbers wasmore marked in the second quarter of the year with a drop of -9 compared with the same period in 2009 In largepart this reduction was due to the Icelandic volcanic eruption in April leading to the closure of large segments ofEuropean airspace During the summer months passenger numbers were broadly flat while the adverse weather overChristmas led to a fall of -24 in passenger numbers during the fourth quarter

Apart from months affected by snow volcanic ash and strikes passenger numbers handled at UK airports were similarto those carried during 2009 suggesting that underlying demand was broadly flat during 2010

Regional airports were proportionately more affected than London airportsn At the London airports ndash Heathrow Gatwick Stansted Luton and London City ndash the fall was -2 to 127 million

passengers The largest decline in percentage terms was at Stansted (-7) followed by Luton (-4) and Gatwick (-3) Conversely Heathrow was broadly flat (-02) year on year serving 66 million passengers in 2010 LondonCity Airport handled 28 million passengers -06 fewer than in 2009

n At the regional airports ndash those other than the London airports ndash traffic contracted by -5 to 83 million passengersManchester the largest regional airport saw passenger numbers fall by -5 to 177 million

In 2010 the majority of UK airport passengers (122 million) were bound for or arriving from geographical Europe ndashrepresenting a fall of -29 from 2009 Within this the largest absolute increase was in passengers travelling to andfrom Turkey (up by 557000 an increase of +11) with the largest fall in passengers travelling to and from anindividual European country being Spain (including the Canary Islands) where numbers fell by -6 (17 million) atrend already observed in 2009

There was a -29 (06 million) decrease in passengers on flights to and from North America to 19 million in 2010Passengers travelling to and from the remaining international destinations (outside Europe and North America) totalled31 million in 2010 a slight increase of +18 on 2009

OAG ranking of world airports by international commercial passenger flight departures week commencing 14 March 2011

Rank Rank Airport Country Flights Change2011 2010 in week on year

1 2 London Heathrow UK 4060 +52 1 Paris Charles de Gaulle France 3937 03 3 Frankfurt International Germany 3570 +34 4 Amsterdam Schiphol Netherlands 3481 +55 5 Munich International Germany 2626 +66 7 Singapore Changi Singapore 2568 +127 6 Dubai International UAE 2557 +98 8 Hong Kong International China SAR 2555 +139 9 Madrid Barajas Spain 2363 +710 11 Vienna Austria 2126 +311 12 Zuumlrich Switzerland 2104 +412 10 Toronto Lester B Pearson Int Canada 2088 013 13 Copenhagen Kastrup Denmark 1920 +214 15 Bangkok Suvarnabhumi Int Thailand 1887 +1015 14 Brussels Belgium 1874 +5

wc 1432011 vs wc 832010 Source OAG


UK TRT the organiser of ISPY (Inflight Sales Person of the Year) has announced that registration for the 2011event is now open ISPY and ispyPLUS 2011 will take place on 14-18 November at the Brighton Hilton MetropoleHotel

At ISPY one hundred of the worldrsquos cabin crew are expected to compete for the title of lsquoInflight Sales Person of theYear 2011rsquo and places will be allocated on a lsquofirst come first servedrsquo basis ispyPLUS is two-day conference which focuseson the interests of airline buyers and suppliers

To register for ISPY orand ispyPLUS visit the ISPY website wwwispy-internationalcom or contact Steve Auston atstevetrtukcom

UK The UK Travel Retail Forum is seeking to appoint a new Secretary General in a part-time role following theretirement of Barry Goddard

The candidate will represent membersrsquo interests to the UK Government HM Revenue amp Customs HM Treasury theDepartment for Transport the Department of Health the Better Regulation Executive and to relevant EU bodiesnotably the Commission and to respond to appropriate media interests

Interested parties should ideally have experience of working with HMRC and government departments of draftingsuccinct and compelling briefing papers and argumentation and be able to communicate effectively at all levels

For more information please send an email to the Chair of UKTRF Sarah Branquinho at sarahbranquinhoworlddutyfreecom attaching a cv The closing date is 30 March 2011

For more on the role go to the Jobs section at wwwTheMoodieReportcom


The people of Christchurch New Zealand need your urgent help after a second devastating earthquake in the space of six months hit the city on 22 February

The Moodie Report has donated NZ$20000 to the relief effort and calls on other travel retail companies to do the same

Time is too short to create a separate industry fund so please donate to either

wwwredcrossorgnz or wwwchristchurchearthquakeappealgovtnz

THE MOODIE REPORT 7 DAYS PEOPLE NEWS JOBS EVENTS amp NOTICES

THE MOODIE REPORT 7 DAYS FEEDBACK

Dear Martin

We would like to thank you for the wonderful opportunity to see the latest trends in the industry from the men leading it meetinteresting people and socialise with colleagues at The Trinity Forum in Bangkok

It has been the best organised and well-thought out conference we have ever attended

A big thank you personally for driving the Trinity spirit and the industry in general I believe you have a great team at Moodiersquoswho supported you throughout the event and made sure everything went smoothly

Alexander Baev Chairman and Vadim Sagiev Commercial Director

Regstaer Moscow Russia

Thank you for your readership and support of The Moodie Report

Martin Moodie Founder and Chairman



GERMANY Five new outletsopened this week in Frankfurt Airportrsquosnon-Schengen Pier B all located airsidein the international departures andtransit zone

Among the outlets is a large multi-brandfashion unit operated by GebrHeinemann and spanning 440sq mAmong the brands available in the storeare Hugo Boss Boss Orange Paul ampShark Lacoste Tommy Hilfiger and

travel-oriented apparel label Napapijri The store is described as open and inviting and features clothing shoesleathergoods and accessories for both sexes

A new 27sq m Swarovski boutique has also opened in Pier B showcasing the Austrian costume jewellery and giftsbrandrsquos new Crystallized concept in its striking white livery A full range of jewellery watches and Swarovski crystalfigurines is available (pictured)

Dutch electronics retailer Capi International has opened a 160sq m store in the zone offering a range of leading brandsacross all product sectors including cameras camcorders and mobile phones Finally Lagardegravere Services subsidiary HDSRetail Deutschland opened two new stores in Pier B this week A new Virgin store covering 109sq m is the retailerrsquossecond such outlet at Frankfurt and offers books press DVDs and CDs HDS Retail has also opened a 115sq m HubConvenience store offering sandwiches snacks and beverages plus a range of newspapers magazines souvenirs andcigarettes

Frankfurt Airport described the international departure and transfer area of Pier B as ldquoone of the airportrsquos most sales-intensive retail areasrdquo thanks to a high level of footfall and an affluent passenger profile The pier features two largeHeinemann duty free stores and luxury brands such as Hermegraves and Christ and growing accessories brand Shanghai Tang

ITALY Gebr Heinemann celebrated its debut as an operator in the Italian airport retail market on 3 March as theHamburg-based retailer and distributor officially opened two stores at Bologna Guglielmo Marconi Airport Theretailer was selected to operate the 10-year concession late last yearafter a tender process in which the airport received 12 expressions ofinterest

Under its Travel Value amp Duty Free fascia Heinemann ndash through newsubsidiary Regal GH Italiana ndash now operates two stores at Bolognaone in the Non-Schengen boarding area (120sq m) and one forSchengen passengers (100sq m) The stores which offer liquor tobaccofragrances amp cosmetics confectionery and fine food will be phased outduring a full renovation of the terminal at Bologna during which thelandside area will be considerably reduced to create more space airside

Scheduled to be complete by late 2013 the project includes the creationof two large walk-through stores covering approximately 900sq m in total

Bologna Airport President Giuseppina Gualtieri said ldquoWe are verysatisfied to have such an important international operator launching itsItalian operations at our airport This agreement refers to importantresults achieved by the airport in 2010 with traffic growth of +153equivalent to double the average increase of Italian airports This isfurther evidence that our airport the fourth in Italy for globalconnectivity has acquired a new relevance beyond national boundariesand that our passengers provide an interesting market for the mostimportant operatorsrdquo


THE MOODIE REPORT 7 DAYS BUSINESS NEWS































































Europe 3197 2939 +88 +53 12789 11830 +81 +57Spain 1157 1076 +75 +75 4938 4746 +40 +40UK3 2040 1863 +95 +40 7851 7084 +108 +67


on sales 117 109 116 102Capex 145 35 3147 3487 280 218 282 259

on sales 35 09 17 14















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Source Autogrill

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Dear Martin






































































Europe 3197 2939 +88 +53 12789 11830 +81 +57Spain 1157 1076 +75 +75 4938 4746 +40 +40UK3 2040 1863 +95 +40 7851 7084 +108 +67


on sales 117 109 116 102Capex 145 35 3147 3487 280 218 282 259

on sales 35 09 17 14















Source Autogrill

7

3

11

33

45

1




Source Autogrill

5

7

5

31

47

5





Source Korean Air
















































Dear Martin





















Source Autogrill

7

3

11

33

45

1




Source Autogrill

5

7

5

31

47

5





Source Korean Air
















































Dear Martin























































Dear Martin








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