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Aldeasa tops the bids in the long-running and controversial Atlanta Hartsfield-Jackson International Airport duty free tender | |
US. Aldeasa has topped the bids in the long-running and controversial Atlanta Hartsfield-Jackson International Airport duty free tender.
Bids were opened today and The Moodie Report understands reliably that the following first year minimum annual guarantees (the contract is for five years) were tabled:
1. Aldeasa: US$9,550,001
2. Dufry: US$8,038,532
3. Duty Free Americas: US$6,818,770
4. The Nuance Group: US$6,503,000
5. Alpha: US$3,126,000
At stake is a concession covering duty free sales in Concourse E at Hartsfield-Jackson International Airport. Bids closed on 2 August. Sales last year reached US$15.5 million, airport management told The Moodie Report earlier this year.
Aldeasa is understood to have been confident of driving sales to the US$30 million level but even so its bid is another highly aggressive one, following in the wake of its recent victorious bids for Vancouver International and Kuwait airports. The company is clearly pursuing an ambitious strategy of international expansion that will make it less reliant on its home market of Spain – where several of its core airport contracts are set to go to tender later this year.
On last year’s figures Aldeasa’s minimum annual guarantee represents a whopping 61.65% of sales. If turnover moves up to US$20 million – the calculation at least one other bidder made – that ratio comes down to 47.75%, still at the extreme end of the scale. But if Aldeasa can deliver sales of US$30 million, the percentage falls to 31.83%. It’s a calculated risk by the Spanish travel retailer, for whom Atlanta would be its first US airport contract – though sister Autogrill company HMSHost is US-based and is of course the Atlanta incumbent, continuing to operate the contract on a month-by-month deal until the new retailer is named.
The deal is not done and dusted yet. First the bid has to be approved – though the City of Atlanta seems sure to opt for the highest offer. But the contract is still the subject of a final legal appeal by the thwarted earlier winner, a partnership between Duty Free Air and Ship Supply (DFASS) and Franklin & Wilson Airport Concessions.
The alliance challenged the recent tender, arguing it was the rightful winner of the original bid in October 2003. A Superior Court Judge denied that challenge in July but the partnership proceeded with a further appeal to the Georgia Supreme Court.
It is understood that the new contract will not proceed until the result of the latest court action is known.
We understand that the DFASS and Franklin & Wilson Airport Concessions alliance offered in the region of US$4.2-4.5 million in first year guarantees when originally ‘awarded’ the contract, a far cry from the blockbuster offer tabled by Aldeasa.
MORE ON THE ATLANTA BID
DFASS/Franklin & Wilson partnership loses Atlanta case – tender to proceed – 26/07/06
Thwarted winner steps up Atlanta challenge – 13/07/06
Atlanta duty free concession is re-issued – 06/06/06
DFASS vows to begin operating Atlanta duty free concession “˜as soon as possible’ – 06/09/05
