Singapore airport retailer to run duty-free outlet at Noida airport

Heinemann & Hyderabad-based BWC Forwarders will operate duty-free, retail area; outlets in it will feature a selection of premium liquors, tobacco, confectionery, perfumes, cosmetics, and chocolates

Hamburg-based Heinemann -- which manages duty-free areas at airports in Germany, Australia, New Zealand and Singapore -- and Hyderabad-based BWC Forwarders have been given the contract to operate the retail and the duty-free outlet at the upcoming Noida International Airport.

The airport, currently under construction in Jewar and anticipated to commence operations by December of this year, is projected to handle 9.4-11.7 million passengers in 2025-26, according to estimates from aviation consultancy firm CAPA India.

The airport announced that the international duty-free outlet, to be operated by Heinemann, will feature a selection of premium liquors, tobacco, confectionery, perfumes, cosmetics, and chocolates.

Heinemann currently manages duty-free areas in airports spanning countries including Germany, Austria, Hungary, Australia, New Zealand, Singapore, Hong Kong, Malaysia, and China.

The retail spaces, both in the domestic and international sections of the Noida airport, will be overseen by BWC Forwarders. This entails that any company interested in operating a shop at the Noida airport will enter into a contract with BWC Forwarders.

Subsequently, BWC Forwarders will share profits with the Noida airport in accordance with the concession agreement between the two entities.

The Noida airport had on April 18 conducted its first calibration flight. A calibration flight for a new airport verifies and fine-tunes navigation aids, runway lighting, and airspace, ensuring safety and accuracy before commercial operations commence. It also helps pilots familiarize themselves with the airport layout and procedures.

Strong competition is expected between the Noida airport, which is being built and managed by Zurich Airport International, and the Delhi airport, which is operated by GMR Group-led entity, according to CAPA India's report in January.

“Currently, the value-added tax (VAT) on aviation turbine fuel (ATF) for domestic services is 25 per cent at Delhi airport. It will only be 4 per cent at Noida airport. This will have a bearing on capacity allocation (by airlines) and expansion,” CAPA India’s report stated.

ATF constitutes about 40 per cent of an airline’s costs in India.