Cheers to duty-free liquor

A price war of sorts has begun at airport duty-free shops, with Dubai-based Flemingo Duty Free cutting prices by $3 on select alcohol brands and cigarettes. The new prices will come into effect a little after midnight on Friday morning.

As a result of the $3 price cut, a one litre bottle of 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. A Flemingo spokesperson promised another round of price cuts on products like perfumes and chocolates. "We have brought prices to international levels," he said.

Interestingly, 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 Alpha Group of the United Kingdom and Kishore Biyani-promoted Future group, won the contract to operate duty-free shops by Delhi International Airport Ltd for 39 months at a value of at least Rs 500 crore.

Flemingo currently runs 25 duty free shops at various airports, including in 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.

Flemingo'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.