ICELAND. Keflavik Airport operator Isavia is inviting pre-market engagement (PME) to explore outsourcing its duty free business for the first time, The Moodie Davitt Report can exclusively reveal.
Duty free stores at the airport are currently run by State-owned Isavia’s subsidiary Duty Free Iceland.
The potential opportunity at Iceland’s number one airport covers one arrivals (2,400sq m) and two departures duty free stores (1,700sq m and 140sq m), located in the main terminal and the non-Schengen section.
In addition, any successful bidder will receive the use of a bonded warehouse located on airport property (occupying approximately 1,600sq m) and common staff facilities within the main terminal building.
Isavia said it is inviting businesses with a solid history in running duty free operations to participate in the PME process.
Keflavik International Airport Chief Commercial & Airport Development Officer Guðmundur Daði Rúnarsson told The Moodie Davitt Report: “At Keflavik International Airport, we are dedicated to improving and evolving our services. Part of this journey involves assessing the potential of our duty free business.
“Currently run by Isavia’s subsidiary, we’re contemplating the possibility of collaborating with an external partner. We’re reaching out to experienced duty free operators for a pre-market engagement as a preliminary step. The aim is to gauge interest and potential for three duty free units within Keflavik Airport.
“The duty free stores are an essential part of the Keflavik Airport experience. Isavia’s goal is to ensure growth in this element of the business by consistently offering good service, a variety of products, competitive prices and an enriching customer experience. Local products are also an important focus area to ensure growth, as well as to build local identity and Sense of Place.”
Rúnarsson noted that while Isavia is considering issuing a Request For Proposal (RFP) and a traditional concession process, this PME is primarily for information gathering and does not guarantee a tender process. There is no binding commitment for those involved, he added.
Keflavik International Airport has shown a robust recovery post-pandemic, with 85% of 2019 passengers (6,126,421) returning in 2022. The projections for 2023 indicate a footfall of 7.8 million passengers, a +8% increase from 2019, when 7,247,820 were served.
The airport is situated 3.1km west of Keflavík and 50km southwest of the Icelandic capital Reykjavík. Most international journeys to or from Iceland pass through Keflavik Airport.
Its strategic location makes it a popular hub between North America and Europe, with a rising number of transfer passengers expected in the coming years.
Deadline and communication
All communications and expressions of interest should be submitted via Isavia’s tender portal, here, before the submission deadline of 31 August. Isavia said it will review responses as soon as they are received. 
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