USA. BAA USA has followed up the success of its recent Baltimore terminal launch by securing new terms with Massachusetts Port Authority (Massport) for its contract to manage the retail and catering in Boston Logan Airport’s main terminals B, D and E until the end of 2015.
The combination of the two deals effectively doubles the scale of BAA USA’s operations.
Under the terms of the new contract, BAA USA and Massport will share in an investment programme in excess of US$10 million to develop over 32,600sq ft of retail space and significantly improve the overall passenger exposure to, and experience of, the retail facilities.
While Massport will fund the non-retail elements – including the building of the new expansion area, the relocation of security and the provision of new restrooms – BAA USA’s investment of US$4.8 m will be focused principally upon delivering an incremental 15,000sq ft of retail space, which will include a radical strengthening of the airport’s retail and catering options, providing a “vibrant mix of local and international brands and flavours”.
The new area will be created through a combination of building new space and a more efficient use of the building envelope, including the recently completed re-positioning of the current two security search areas into one common area. The two-year programme will follow a phased implementation to maintain the high levels of service in the terminal, which will remain open throughout. It is due to be completed by mid-2007.
Paul Weber, BAA International Retail Director, said he was delighted with this development: “Since we first came to Boston in 2000, we’ve developed a great relationship with Massport based on our shared commitment to improving customer service and quality, whilst simultaneously bringing improved revenues to the airport. I’m confident that we’ll deliver an impressive facility that will place Boston at the forefront of airport facilities in the US.”
He continued: “Alongside our recent launch at Baltimore Washington, we have effectively doubled our business in the US both financially and in terms of space. This is a credit to Mark Knight, BAA USA Vice President and regional director and his team for their tenacity and commitment to improving the face of US airport retailing.”
The new contract terms include BAA Boston’s proposal to maintain existing financial terms and conditions of its lease, with the exception that the company will receive an extension to its contract in Terminals B, D and E to the end of 2015. This proposal therefore represents an extension of two and a half years in Terminals D/E, and an extension of four years in Terminal B.
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