| Journal: TWUK | Section: |
| Title: | Issue Date: 10/07/00 |
| Author: | Page Number: 2 |
| Copyright: Other |
Taxing situation: Spanish officials are expected to relax tax regulations that were brought in after the abolition of duty-free
UK airlines set to resume sales of alcohol on Spanish services
UK AIRLINES are expected to resume sales of alcohol and tobacco on flights to Spain following negotiations with the destination’s customs authorities.Spanish officials are expected to relax tax regulations introduced following the abolition of duty-free in July last year.
Airlines have given up selling alcohol and tobacco on all inter-European Union flights due to the complexity of the new tax arrangements.
At present only one airline, Britannia Airways, is selling alcohol on board, because it has own brand supplies.
Britannia deputy managing director Bob Parker-Eaton welcomed the latest news. “Spain represents 60% of our business. We hope that other countries will fall into line after Spain,” he said.
The UK Travel Retail Forum, formerly the Duty-Free Confederation, estimates that UK airlines, airports and cross-Channel operators have lost £500m in the first year since abolition. It also claims 3,000 jobs have been lost to date.
n See Analysis page 8