KEY POINTS:
Auckland airport has dropped plans to scrap one of its two duty-free stores, but is giving no guarantees it will keep the same two stores open.
The airport announced in July last year that Regency Duty Free would go when its contract runs out in August next year,
leaving DFS Galleria as the only operator.
Yesterday it said it would keep two stores, after the Commerce Commission warned its plan could breach competition law.
Airport chief executive Don Huse said it was too early to say whether it would keep Regency on or give the second contract to someone else.
The airport had made a pragmatic decision to keep two stores open rather than face a long battle with the commission.
The commission said shoppers would have paid more for their duty- free goods if there was no competition between stores.
The airport has now promised to keep two stores open until at least June 2015. But just how the shops will operate has not been decided.
The airport has already given DFS Galleria most of the duty-free space in the arrivals hall, after a revamp this year.
At the time, the airport planned to phase Regency out.
Commission chairwoman Paula Rebstock said it was important to resolve competition concerns promptly because changes to the arrivals hall had left Regency with "only a minor presence" at the airport. None of the parties could say if Regency would now be given more space.
Consumer New Zealand chief Sue Chetwin said the airport would need to provide a balance between the stores or it could be seen as trying to bring in a single operator by the back door.
The decision to have two stores was "really good news" for consumers.
Regency managing director Kelvin Ricketts said he thought the airport was looking at giving more equal space to the two operators, but he could not be sure.
He said the latest decision did not guarantee Regency's survival at the airport.
"Hopefully being the encumbent there will give us a good chance," he said.
"If it's not going to be us, we need to let our staff know as soon as possible."
Mr Ricketts said Regency had received an amazing amount of public support since the news broke that it was being removed.
Some people had even offered money to help fight the airport's decision.
DFS Galleria said it was disappointed the airport had decided not to carry on with plans for a sole operator.
"It wasn't the decision we were hoping for," said company spokeswoman Sharon Weiner.
When the move to a single operator was announced, airport management said a price comparison procedure would ensure prices remained competitive.
Yesterday Mr Huse said the airport was confident it could provide a high quality duty-free service with two operators.
THE STORY SO FAR
* Auckland airport tried to drop its Regency Duty Free store, leaving DFS Galleria as the only place to buy duty-free goods.
* The Commerce Commission warned the plan could breach competition law.
* The airport now says it will have two duty-free stores - but Regency will not necessarily be one of them.
