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Airport Merchants Want Relief

Fewer Fliers Means Fewer Dollars For Airport Retailers

POSTED: 10:08 pm EST November 22, 2009
UPDATED: 8:09 am EST November 23, 2009

With the number of passengers flying out of Indianapolis International Airport down about 10 percent compared to last year, airport vendors are struggling to stay afloat.

The Indianapolis Business Journal said 6.3 million passengers flew in and out of the airport last year, compared with only 5.6 million this year.

Those numbers trickle down to the airport's 23 restaurant vendors and 24 specialty retailers.

"When you have 300,000 less people leaving on airplanes and you have three times more retail operations, I think there's going to be some winners and losers and some empty spaces," said Brian Shapiro, owner of Shapiro's Deli

Shapiro said less traffic creates unique challenges for his business and others, prompting some airport merchants to press the Indianapolis Airport Authority to allow them to adjust pricing to make up for slowing revenue streams.

The airport follows a street pricing policy guideline to encourage more retail sales. But the policy can be a bit ambiguous because it doesn't mean items at the airport cost the same as they would at retail outlets outside the airport

6News purchased a large soft drink from the airport McDonalds for $1.59, while that same size drink at another McDonalds near the airport cost $1.

Shapiro's admitted its corned beef sandwich is $1.39 more at the airport, but they throw in a bag of chips, unlike at their other delis.

Shapiro said they charge a little more because space costs more. According to the IBJ, that space is about $70 per square foot, compared to about $40 per square foot in a traditional retail outlet.

There are some success stories, with some vendors, such Enroute Massage and Spa, reporting sales up 2 percent this year.

While the airport authority has no current plans to change the street pricing rule, it does plan to offer tenants about $800,000 in relief over the coming year.

"We're trying to work with our concessionaires to help them out in this difficult economy by offering some rent reductions," said airport spokeswoman Susan Sullivan.

One passenger told 6News that after she paid $8 for popcorn, she thinks the airport already makes enough money.

Sullivan said that while the rent relief should help some vendors, they should keep in mind that everyone else is hurting, too, which is why the airport authority believes increasing retail prices wouldn't be in the best interest of anyone involved.

"I think it's terrible to raise prices or taxes during a recession. People are already short on money, and I think you have to do a better job with your product brand and market share," Shapiro said. "Some people are going to win. Some people aren't going to win."

Despite the decline in passengers, the airport said customers are spending more -- about $11 per person, compared to $8 a year ago.

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