Airmall USA validates business model with strong 2012 growth

US. Airport concession programme developer Airmall USA, has reported “enduring growth” at Pittsburgh, Boston Logan, Baltimore-Washington and Cleveland Hopkins airports in 2012.

The company said the strong results refute the assertions of Unite Here, the national hospitality concessions union, which has long claimed that private concessions developers such as Airmall USA have a negative impact on the airports business in North America

Per-passenger spend is the true benchmark of a successful airport concessions programme, and by all accounts, Airmall has achieved enviable results at all four of our airports
Mark Knight
President
Airmall USA

Airmall USA has labelled those assertions “an ongoing misrepresentation of Airmall’s model”.

Airmall USA President Mark Knight said: “Over the past several years, Unite Here’s public statements about Airmall USA and our model have amounted to a misinformation campaign that is not representative of the entire story.

“Time and time again, they question the success of our model, and time and time again, the numbers demonstrate definitively that they’re simply wrong. As we’ve said in the past, we will defend our model any time it is misrepresented.”

Knight said that the 2012 sales figures offer further validation of the strength of Airmall’s model for airport concessions.

The Airmall at Pittsburgh posted a per-passenger spend of US$13.60 in 2012, an increase of more than +400% since Airmall launched its concept at the airport more than 20 years ago. During that same period, passenger traffic has dropped by more than -50%.

At Boston Logan, Airmall recorded a per-passenger spend of US$12.18 in 2012, a +150% jump since Airmall began developing and managing concessions in terminals B and E more than a decade ago.

Per-passenger spend at Baltimore-Washington Airport (BWI) was US$9.68 , a +77% increase since Airmall began managing the concession programme in 2004.

And at Cleveland Hopkins International, per-passenger spend reached US$8.58, a +54% increase since Airmall began managing the concessions programme in 2008. During that same period, passenger traffic has decreased by nearly -20%.

Knight said: “Per-passenger spend is the true benchmark of a successful airport concessions programme, and by all accounts, Airmall has achieved enviable results at all four of our airports. In several instances, we’ve done so during times of change and challenge for our airport partners.”

Knight also challenged one of the union’s complaints by explaining that the Airmall model is a catalyst for job growth and economic opportunity.

“At BWI, we’ve tripled the number of concessions jobs since we took over in 2004,” he said. “The airport employs nearly 1,500 people in its concessions programme now, because our model is focused on bringing in a variety of operators to give passengers plenty of choice. Today, the average full-time concessions wage at BWI is more than US$18 an hour. Plus, our programme has created nearly seven times more supervisory-level jobs compared to when we took over.”

Mark Knight says the company’s 2012 sales figures were “even further validation of the strength of Airmall’s model for airport concessions”

Knight concluded: “As we move further into 2013, we’re excited about new developments on the horizon that will further enhance the passenger experience.”

Last month, the Airmall at Pittsburgh launched the first phase of a US$10 million upgrade to the concessions programme, said to be the largest of its kind since the airport opened in 1992. The renovations will transform the Center Core of the airport, which receives all departing and arriving passengers. Airmall plans to add nine new units, including some from luxury brands.

At BWI, Airmall will join with its tenants to execute a US$15 million upgrade to the concessions programme over the next two years. The project will create more than 18,000sq ft of additional retail space and is part of an overall airport construction programme that includes the creation of a new connector between concourses B and C.

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