Dubai Duty Free (DDF) Managing Director, Colm McLoughlin, has outlined plans to double the airport retailer’s size in five years and grow the workforce to 6000 (emirates247.com, 01-Aug-2010). Mr McLoughlin stated that this will be achieved through the construction of Concourse 3 at the existing Dubai International Airport, which will have an estimated 8,000sqm of retail space, and also through the new Al Maktoum International Airport will have an estimated 64,000sqm of retail space upon completion. DDF was recently announced as the world’s largest airport retailer, ahead of London Heathrow and Seoul Incheon. Mr McLoughlin added that DDF sells to more that 32% of departing passengers and average spend per passenger is about USD45.
Dubai Duty Free announces growth plans
You may also be interested in the following articles...
flydubai outlook improves, with reduced losses and faster rebound despite global uncertainty
As airlines worry about having passed their peaks and entering a downturn, flydubai, the LCC owned by the Dubai government, is on an upwards trajectory. This is very welcome after flydubai's sudden and sharp 1H2015 loss occurred as most other airlines were in party mode, buoyed by low fuel prices. flydubai significantly narrowed its 1H2016 loss despite double-digit growth. With the industry worrying about its health, flydubai appears to have caught the cold early and rebounded from it. An improvement in load factor, uplift in business traffic (19%) and reduction in expenses may show greater efficiency that can be maintained – the silver lining to the financial upset.
flydubai's 1H2016 loss narrowed to USD24.5 million from 1H2015's USD40 million, despite a 14.9% increase in flights. Losses per passenger decreased about nine percentage points faster. Unlike its bigger sister Emirates, also owned by the Dubai government but run separately, flydubai is primarily a point-to-point operator - so it depends on the health of Dubai.
Avianca Holdings:under pressure in the region, but believes yield declines could stabilise in 2H2016
After recording sequential quarterly improvements from 4Q2015 to 2Q2016, the Latin American airline group Avianca Holdings believes that its yield performance should stabilise in 2H2016. However, despite improving trends on a sequential basis, Avianca’s year-on-year yield declines remain in the double digits, and currency fluctuations could affect its current outlook for yield stabilisation.
Although the airline group’s largest market – Colombia – is facing economic pressure the challenges are not as severe as Brazil’s dire economic circumstances, and at present Avianca believes that the Colombian domestic market and routes from Colombia to North America are beginning to recover.
The duration of a recovery in those markets remains unknown, and Avianca and its Latin American rivals continue to adapt to the overall weakness in the region. A major focus for all airlines in Latin America is decreasing costs, as yields and unit revenue remain under pressure. Avianca’s unit costs excluding fuel have also fallen in the double-digit range for the last three quarters, and the company has outlined a cost-cutting scheme to save millions annually by YE2018.