March 20 2020  |  Airlines & Airports

COVID-19 impact: IAADFS asks airports to suspend minimum guarantee payments for members

By Hibah Noor


“We are all suffering, and we are all in this crisis together” - Michael Payne, IAADFS President and CEO

The International Association of Airport Duty Free Stores (IAADFS) has called on US airport authorities to help travel retailers by suspending minimum guarantee payments from March until the end of the COVID-19 pandemic.

In a letter to its airport partners dated March 19, IAADFS President and CEO Michael Payne said: “We are all facing extremely difficult challenges in view of the rapidly spreading COVID-19 pandemic confronting our world and every sector of our national economy. As you well know, few businesses are more affected than the airports and their partner organizations.

“The companies that comprise the duty free and travel retail sectors are suffering devastating consequences as a result of the dramatic decline in airline passengers. Our members have reached out individually to numerous airports seeking assistance and collaborative discussions to help address the requirements they all face for guaranteed payments to airports, even in the absence of sufficient passenger traffic numbers. There needs to be an impactful and rapid decision by airport authorities and their leadership to work together with the duty free and travel retail industry to ameliorate the crisis we are facing.”

Acknowledging that airports are also facing “significant consequences”, Payne continued: “No one could have foreseen the rapid freefall in passenger numbers from this unprecedented global health emergency. We are all suffering, and we are all in this crisis together.

“On behalf of your colleagues, friends and business partners in the duty free and travel retail industry, we are requesting that airports suspend, effective March 1, 2020, and until the end of the national emergency, guarantee payments that are predicated on specific minimum passenger numbers.”

In a call for unity, he went on: “Clearly, these are historic and unprecedented times during which we need to come together as a global business community to address the rapid decrease in passenger retail traffic that is the lifeblood of both the airports’ and duty free operators’ businesses. There are thousands of jobs at stake, including the solvency of your important duty free business partners. We look forward to tackling this problem together and know that our airport and travel retail community will rise to this challenge, engage with all our members and adopt whatever measures are necessary to secure the long-term success of our airports and the duty free and travel retail industry.”

Brand News

August 7 2020

NUXE enters summer with limited…

​Planning to make waves this summer and create a “chilled” seasonal vibe, NUXE is launching three limited edition bottles…

By Jas Ryat

August 6 2020

CircleSquare acquires stake in…

CircleSquare has announced the acquisition of a significant stake in Swiss digital marketing agency comtogether. The bright…

By Hibah Noor

August 6 2020

Travel Blue Group locks in retail…

Orell Füssli Thalia AG, One of Switzerland’s leading book retailers, has taken Travel Blue travel accessories and Lexingham,…

By Jas Ryat

August 5 2020

Brown Forman completes sale of…

​Brown-Forman Corporation announced that it completed the sale of the Early Times, Canadian Mist and Collingwood brands and…

By Jas Ryat

August 5 2020

Loch Lomond Whiskies launches refresh…

​Loch Lomond Whiskies has unveiled a complete brand refresh of its packaging and range offering…

By Jas Ryat

August 3 2020

Il Vino dei Poeti Prosecco Doc…

​Bottega SpA will have the new Prosecco Doc Rosé, available on the European market in November

By Jas Ryat

July 30 2020

Tito’s appoints new representative…

Effective August 1, 2020, Toronto-based Borders Duty Free Agency Ltd. has been appointed to represent Tito’s Handmade Vodka…

By Laura Shirk

July 28 2020

Sunglasses Workshop to be hosted…

​The collective of sunglasses suppliers – Kering Eyewear, Luxottica Group, Marchon, Marcolin and Safilo – announced that…

By Jas Ryat

July 24 2020

Marking 75th consecutive year,…

​Brown-Forman Corporation’s Board of Directors declared a regular quarterly cash dividend of $0.1743 on its Class A and Class…

By Jas Ryat

Copyright 2020 DutyFree Magazine. All rights reserved. Privacy Policy Sitemap