One bag rule severely impacting retail revenues
20 July 2010The ‘’one bag” rule prohibits passengers from carrying duty free purchases on board unless they fit into the traveller’s single cabin bag. This is having a hugely detrimental impact on many of the small and regional airports served by the ‘low-cost ‘carriers (LCCs), which rely on commercial revenues as an increasing proportion of income. LCCs are Europe’s fastest-growing airlines, accounting for 37% of European traffic, 50% of non-domestic traffic in some cases, and 80% of total traffic at some airports.
Non-aeronautical revenues are becoming increasingly important, particularly for small and regional airports, and are vital to providing the low airport charges enjoyed by LCCs across Europe.