OMAN. Aer Rianta International (ARI) CEO Ray Hernan says the company is preparing to make its market debut in Montenegro while planning further openings in the Middle East. He was speaking on Monday at the Middle East and Africa Duty Free Association (MEADFA) Conference.
Hernan told delegates that ARI will begin trading in Montenegro soon, having secured a contract to operate in the country’s two international airports – Podgorica and Tivat – which was put out to tender earlier this year.
“Montenegro will be our first time in mainland Europe in many years,” he said. “We are delighted because we think there is an opportunity there. The way ARI has done business over the years has seen us go into regions early and I believe Montenegro is a location that is going to evolve very quickly over the coming years.”
In Bahrain, a new airport terminal is scheduled to open in early 2020, with Bahrain Duty Free Company having been awarded a new contract for the duty free areas.
“Bahrain was our first venture [in the region] from an airport operations perspective in 1991. We have just announced another ten-year extension to the contract there, which I am delighted with given that the new terminal will be opening there next year,” he said.
An additional new location for ARI-Middle East will be Abu Dhabi International Airport, where the retailer will operate the perfumes & cosmetics plus sunglasses and jewellery concessions in the Midfield Terminal when the long-awaited facility opens (scheduled for 2020).
Hernan said ARI will “always continue to drive our offer here [in the Middle East]”.
“I am envious of the level of investment that is coming into the airport infrastructure here. As an industry, that gives us a massive opportunity,” he added.
Other big projects in the region include upgrades at Beirut Duty Free. The retailer, a partnership between Phoenicia Trading and ARI, recently embarked on an upgrade of its beauty department, including a 100sq m increase in the footprint. This allows the introduction of nw brands such as Jo Malone London, Nars, Benefit, By Kilian, Kiehl’s and Rituals among others. The company will also readjust space and renovate counters for existing brands.
The fashion zone is also undergoing a renovation, and will feature new brands such as Emporio Armani, Michael Kors, Calvin Klein, Fila and Karl Lagerfeld. Montblanc is doubling its space through a new boutique, with updated space for Furla, Salvatore Ferragamo, Ralph Lauren and Tumi.
Looking more long term, Hernan said in a MEADFA Q&A session with The Moodie Davitt Report President Dermot Davitt that the retailer plans to bolster its Asia Pacific presence.
“It is a very competitive marketplace and something that we have dipped into. But if we want to be serious, we are going to have to put in more resources. There are a lot of opportunities there in many countries driven by tourism trade and the investment in the airports,” he said.
However, Hernan said ARI will not enter into loss-making retail concessions to solely drive revenue. “We are a relatively small operator and we need to continue to be agile,” he added.
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