Flemingo starts price war at duty-free shops

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.

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."

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.

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.

The Flemingo move is expected to invite a similar response from Alpha Future.

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.

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.