MUMBAI: Making headway in its maiden international airport project in Bali, Indonesia, Indian airport operator GVK has awarded the duty free and retail contracts to Dufry and DFS, two of the leading airport retailers. GVK Airports, a diversified infrastructure company based out of Hyderabad, manages airports in Mumbai and Bangalore. It bagged a management contract from the Indonesian government to manage non-aeronautical and commercial operations at Denpsar International Airport in Bali in 2012. DFS and Dufry are top travel retailers in the world and have been competing with each other to gain number one slot for some years now. DFS is holding the number one position followed by Dufry currently. GVK said the contract with both these companies is for a five-year period and the airport operator targets a seven-fold increase in revenues through duty free and retail sales. The scope includes both the existing terminals and the new international terminal that is currently under construction and is expected to open in the third quarter of 2013. The retail and duty free awards will be followed by Lounge, Forex and F&B concessions, the company said.
"These along with other concessions at international and domestic terminal will generate revenue in excess of Rs 1,500 crore over five years, a whopping 300% increase for Angkasa Pura Airport, the Indonesian Airports Authority that also partners GVK in the venture," the company executive said.
DFS and Dufry won the bids over 200 prospective bidders, the executive added.
The contract with the travel retailer companies has a guaranteed component of over 80% along with minimum annual guaranteed revenue (MAGR) that is benchmarked against Asia's leading airports like Singapore's Changi Airport.
GVK said the MAGR at Bali Airport is two dollars per passenger and is likely to go up to about $12 per passenger $2/pax, and is expected to achieve $12/pax.
GVK's contract with the Indonesian government is on a base fee and an incentive fee based remuneration structure. All capital expenditure is funded by the government
http://articles.economictimes.indiatimes.com/2013-05-10/news/39169289_1_airport-operator-gvk-airports-dufry
"These along with other concessions at international and domestic terminal will generate revenue in excess of Rs 1,500 crore over five years, a whopping 300% increase for Angkasa Pura Airport, the Indonesian Airports Authority that also partners GVK in the venture," the company executive said.
DFS and Dufry won the bids over 200 prospective bidders, the executive added.
The contract with the travel retailer companies has a guaranteed component of over 80% along with minimum annual guaranteed revenue (MAGR) that is benchmarked against Asia's leading airports like Singapore's Changi Airport.
GVK said the MAGR at Bali Airport is two dollars per passenger and is likely to go up to about $12 per passenger $2/pax, and is expected to achieve $12/pax.
GVK's contract with the Indonesian government is on a base fee and an incentive fee based remuneration structure. All capital expenditure is funded by the government
http://articles.economictimes.indiatimes.com/2013-05-10/news/39169289_1_airport-operator-gvk-airports-dufry
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