INDIA. Bangalore International Airport Limited (BIAL), the operator of Kempegowda International Airport, Bengaluru (BLR Airport), has launched its hotly anticipated tender for a joint venture partner to establish, operate, maintain and manage duty free stores with BIAL, at the airport’s upcoming new Terminal 2.
The way the contract has been structured makes it one of the most compelling airport commercial opportunities of recent times.
The joint venture’s scope, which will benefit from a 15-year term, will not be restricted to core duty free operations. The joint venture company will also explore opportunities for luxury retail, food & beverage, and travel essential formats in both duty free and duty paid formats as appropriate, BIAL said.
The joint venture will be in line with BIAL’s recently adopted commercial strategy based on ‘trust, collaboration, and sharing of risks and rewards’. To ensure BIAL has equal ‘skin-in-the-game’ and equal risk-reward sharing, BIAL will be a 50% shareholder in the duty free joint venture company.
BIAL said that its strategy for offering duty free operations in a joint venture model is to create both a world-class offering of iconic international luxury and fashion brands and a digitally immersive experience offering an exceptional service to passengers.
Through the joint venture, BIAL aims to develop sales demand by offering exclusive product offerings and innovative concepts, thus growing the overall duty free market.
BIAL is seeking global industry players with significant experience and expertise in operating travel retail and duty free operations, players that are willing to jointly develop BLR Airport as a preferred destination for shopping and dining.
The long-term, 15-year contract will be focussed on cooperation and commitment, in alignment with BIAL’s vision for sustainable development of BLR Airport and becoming leaders in technology and innovation, the airport company said.
“We are looking for an innovative partner with industry know-how for long-term cooperation,” said BIAL Chief Commercial Officer Kenneth Guldjberg.
“Our vision is to create an exceptional experience for passengers travelling through BLR Airport, offering an elevated and luxurious environment, with a diverse product mix, great brands and excellent service, while focusing on sustainability and development based on care for the environment.”
Proposals for the RFP are due by the end of January 2022. For further information on the tender process, interested bidders can visit https://commercial.bialtenders.com. Also, additionally, for any questions or to declare interest on the tender, interested bidders should write an email to commercialtender@bialairport.com.
About Bangalore International Airport Limited
Bangalore International Airport Limited (BIAL) is a public limited company – formed under The Companies Act – to build, own and operate the Greenfield Kempegowda International Airport, Bengaluru (BLR Airport) for a 60-year concession period.
BLR Airport was the first greenfield airport in India to be built as a private-public partnership. Private promoters hold a combined 74% (Fairfax 54% and Siemens Projects Ventures 20%) stake in BIAL, while the government holds the remaining 26% (Karnataka State Industrial & Infrastructure Development Corporation Limited – 13%, Airport Authority of India – 13%).
The airport began operations in May 2008 and plays a key role in driving the economy of the region – offering connectivity to key destinations in India and across the globe. It is currently the busiest airport in South India and the third-busiest in the country, having welcomed 33.65 million passengers in 2019.
BLR Airport was recognised as the Best Regional Airport in India & Central Asia at the 2020 Skytrax World Airport Awards, for the fifth time in 11 years. The airport also received the Best Airport Staff in India and Central Asia accolades at the 2021 Skytrax Awards. It is the only airport in the world to have wone the ACI-ASQ awards for three consecutive years. For more information log on to www.bengaluruairport.com.
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