NEW YORK, Sept. 29, 2016 /PRNewswire/ -- The Russia & CIS economy has been slowing due to low energy and commodity prices. Being the leading oil exporters, the countries are struggling to survive with the crippling economy and falling prices. Moreover, the conflict between Russia and the West over Ukraine had adversely affected businesses of Russia and the CIS countries.
Despite the continuing economic and social concerns, Russia & the CIS countries have seen a moderate growth in the international passenger traffic. This is mainly due to the devaluation of ruble and other CIS currencies, steep fall in oil prices resulting cheaper jet fuels, and heavy investments in airports development and expansion. Duty-free airport retailing market in Russia & CIS have seen significant growth and would likely to remain same in foreseen future.
An increase in the air traffic of Russia & the CIS region has helped airports and airlines to earn higher non-aeronautical revenues, especially duty-free retailing market.
Although, to sustain profitability, airline operators and airports have to emphasize on strengthening their business relationships and need to work on decreasing air fares, to enhance airport travel retail experiences, and to attract a large customer base. Moreover, stakeholders have realized the importance of non-aeronautical business and their contribution in securing targeted, has led to a constant growth of Russia & CIS duty-free travel retail market.