A price war has begun at airport duty-free shops, with the Dubai-based Flemingo Duty Free cutting prices by $3 on select alcohol brands and cigarettes. Besides, Flemingo has improved its promotional offering by increasing discounts on the premium Johnnie Walker Blue Label whiskey to $15 from $10. | |
| The discount on Johnnie Walker Gold Label whiskey has been increased to $8 from $5. The new rates come into effect from midnight on Friday. |
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| As a result of the price cut, one-litre bottle Chivas Regal and Johnnie Walker Black Label whiskey would cost $26, while Johnnie Walker Red Label will retail for $13. A carton of 200 cigarettes of Marlboro Reds will cost $15. The discount will result in one-litre bottle Johnnie Walker Blue Label whiskey retailing for $111, while a bottle of Johnnie Walker Gold Label whiskey will sell for $45. A Flemingo spokesperson promised another round of price cuts on products such as perfumes and chocolates. "We have brought down prices to international levels." |
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| The price cut has been announced within 10 days of Flemingo's competitor Alpha Future opening its first outlet at Delhi's Indira Gandhi International Airport. |
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| Alpha Future, a joint venture between the Alpha group of the United Kingdom and the Kishore Biyani-promoted Future group, had won the contract to operate duty-free shops by Delhi International Airport for 39 months at a value of at least Rs 500 crore. |
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| The Flemingo move is expected to invite a similar response from Alpha Future. |
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| The company's move comes a day after a joint venture of Switzerland's Nuance group and K Raheja's Shopper's Stop was awarded the contract to run duty-free shops at the Hyderabad International Airport. |
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| Flemingo currently runs 25 duty-free shops at various airports, including Delhi, Hyderabad and Bangalore. Its contract for these three airports ends in 2008. Flemingo operates as a wholly owned subsidiary in India and is headquartered in Dubai. |
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