Aelia has secured the London Luton Airport duty free concession hot on the heels of a similar contract gain in Belfast. Both airports are owned by TBI Group. TBI Chief Executive Keith Brooks (pictured) said an extension of TBI’s franchise at Luton Airport would justify long-term investment, which could drive up passenger numbers from 7 million a year to 20 or even 30 million | |
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FRANCE/UK. Aelia has made a critical breakthrough in its ambitions to be an international travel retail force after securing the London Luton Airport duty free contract, hot on the heels of a similar contract gain in Belfast. Both airports are owned by TBI Group.
Aelia vice-president organisation and development Ambroise Fondeur confirmed the agreement to The Moodie Report this morning. “It’s a very important step for us and we are very happy,” he said.
“It gives us a strong base in the UK with our Belfast and Luton contracts. They are both high growth and ambitious airports and TBI is an ambitious company.”
Aelia takes over the Luton contract from The Nuance Group. Nuance was also the concessionaire in Belfast until Aelia’s controversial appointment there.
“As we have said all along, our intention is to grow internationally and this gives us a strong market position,” Fondeur said.
Aelia will phase in its operations in two steps. It will first take over the approximate 800sq m of duty free space currently occupied by The Nuance Group at the beginning of January. Fondeur said Nuance was being very professional and helpful in the handover.
The French retailer will then take on “brand new space” in the summer of 2005, probably in July. This will involve a 1,200sq m store. This will allow Aelia to add some exciting new areas and products, Fondeur said. The company will also introduce some new speciality brands to the existing shop.
Luton is a key property in TBI’s expansion plans. Its passenger numbers rose +9.0% to 4.1 million in the six months to September. The airport company this week announced plans to triple the size of the facility, arguing that this would require its 30-year franchise (which expires in 2028) to be extended.
Chief Executive Keith Brooks said this would justify long-term investment, which could drive up passenger numbers from 7 million a year to 20 or even 30 million. Building is under way on a 9,000sq m facility which will double the number of shops and restaurants and provide eight new gates.
As the Aelia contract is now signed, it will be unaffected by yesterday’s announcement by TBI that it is in “preliminary talks” which “may lead to a takeover offer”. It has not revealed the identity of the other player.
Background on London Luton Airport: London Luton Airport is the largest of TBI’s owned airports. It is located some 30 miles north of London and within easy reach by road and rail, so compares well with both Heathrow and Gatwick.
The airport has grown significantly over the last few years, principally due to the development of low fare airlines, particularly easyJet. As the passenger numbers below reveal, Luton has a healthy mix of business as well as low fares including a substantial (though currently soft) charter programme, a large freight throughput and it has become a premier airport for Corporate General Aviation. easyJet, Britannia and Monarch all have their operational and engineering headquarters on site.
The airport has undergone a dramatic redevelopment over the last two years, with new check-in hall, new aprons and taxiways, and under TBI management is undergoing a change programme to improve its profitability. Major new facilities, including a new 1,200sq m duty free store, are being added and will be open by summer 2005.
Luton Airport passenger numbers 1 July to 30 September 2004
Full service: 228,900; + 5.1%
Low cost: 1,686,500; +19.4%
Charter: 383,700; -4.9%
Total: 2,299,100; +13.0%
Belfast Airport passenger numbers 1 July to 30 September 2004
Full service: 1,100; -8.3%
Low cost: 956,000; +16.8%
Charter: 427,800; +10.5%
Total: 1,385,000; +14.8%
Source: TBI; The Moodie Report
MORE STORIES ON AELIA AND TBI
TBI stocks shoot up on takeover announcement; Luton retail changes imminent – 18/11/04
TBI posts rise in passengers, turnover and profits for first six months – 16/11/04
The Nuance Group alleges “unacceptable business practice” in Belfast – 02/11/04
Aelia rolls out its exclusive Guerlain fragrance – 07/10/04
Guerlain creates exclusive fragrance for Aelia – 02/09/04
‘Have store, will travel’ – Aelia goes portable in Paris – 05/08/04
