INDIA. Cochin International Airport Limited (CIAL) has issued Requests for Proposals (RFP) for a number of duty paid speciality store concessions in International and Domestic Departures.
In International Departures, the concessions include a 70sq m unit selling Toys/Eyewear/Luxury Pens/Convenience Items/CDs & DVDs; a 35 sq m store offering Fashion Jewellery/Pearls/Crystal & Gifts; plus a 35sq m shop offering Packaged Foods (Indian products).
The airport company said: “CIAL envisages constituting a world class shopping area with reputed brands in and around the airport. The company is looking for a long-term partnership to be put in place, which enables optimum investment decisions and encourage fuller exploitation of the airport’s retail potential. CIAL wants to identify and select retailers for the purposes of developing, operating, maintaining and managing the retail outlets.”
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Projected minimum guarantee and sales levels from the new concessions at Cochin Airport |
The chosen concessionaires will share a percentage of total monthly gross sales with CIAL. The licence agreement will include a minimum guarantee component, except in year one, when retailer and airport will simply share the revenue that the concessions generate, CIAL said.
The airport has also set a target figure for monthly sales from each concession. For the Toys/Eyewear/Luxury Pens/Convenience Items/CDs & DVDs concessions, monthly sales should hit Lakh10 (US$21,500); for the other two concessions, sales should hit Lakh4.0 (US$8,600).
The RFP deadline falls on 28 January. Further enquiries to: Manager (Retail Business) Cochin International Airport Ltd; Tel: +91 484 2610115, Ext 2502.
In related news, CIAL has issued an RFP for retail concessions in the Domestic Departure Terminal. It is offering two small spaces of 9sq m each in the general concourse area, plus four spaces of 7sq m each in the security hold area.
CIAL has set modest minimum monthly guarantees (MAGs) of Rs40,000 (US$850) for the security hold concessions, and Rs24,750 (US$540) for the combined general concourse concessions, reflecting the size of the shop units. The licence fee will be either the monthly MAG or a percentage of sales (to be nominated by the bidder).
Contracts will run for three years for shops in the general concourse zone and five years in the security hold area. The deadline for RFPs is also 28 January.
Cochin was the first Greenfield site airport to be developed in India under the public private partnership model. It is the fourth largest Indian airport measured by international passenger traffic, and handles over 3.6 million total passengers a year.
