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The implications of sustainable development for airport duty-free business models

Author

Listed:
  • Heyes, Graeme

    (Postdoctoral Research Associate at the Ecology and Environment Research Centre, Manchester Metropolitan University, University, All Saints Building, All Saints, Manchester, M15 6BH, UK)

  • Thomas, Callum

    (Professor of Sustainable Aviation, Manchester Metropolitan University, All Saints Building, All Saints, Manchester, M15 6BH, UK)

  • Hooper, Paul

    (Chair in Environmental Management and Sustainability, Manchester Metropolitan University, All Saints Building, All Saints, Manchester, M15 6BH, UK)

  • Urquhart, Cathy

    (Manchester Metropolitan University, All Saints Building, All Saints, Manchester, M15 6BH, UK)

Abstract

This paper considers how the challenges underpinning sustainable development are likely to impact on duty- and tax-free retailing in airports and, by implication, in the entire aviation industry. The paper defines the role of retail as a vital source of airport revenues, before considering the carbon consequences of the sector’s incumbent business models. It finds that products taken onto aircraft increase aircraft weight and fuel burn and are a primary source of carbon emissions for duty-free retailers. The implications for the sector are discussed, and the potential for implementing more sustainable business models is presented. Here it is identified that the specific logistical, economic, and political constraints of operating in the airport make alternative business models difficult, if not impossible to implement. The specialisations that have helped this sector to flourish are constraining their ability to adapt to the climate challenge.

Suggested Citation

  • Heyes, Graeme & Thomas, Callum & Hooper, Paul & Urquhart, Cathy, 2019. "The implications of sustainable development for airport duty-free business models," Journal of Airport Management, Henry Stewart Publications, vol. 14(1), pages 67-80, December.
    • Handle: RePEc:aza:jam000:y:2019:v:14:i:1:p:67-80
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    More about this item

    Keywords

    airport retail; airline fuel consumption; climate change; duty-free; sustainable development; sustainable business models;
    All these keywords.

    JEL classification:

    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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