INDIA. The DFS/Flemingo partnership has unexpectedly extended its duty free contract with Mumbai International Airport Limited (MIAL) to cover the new Terminal 2 at Chhatrapati Shivaji International Airport (CSIA), which opens today.
The CSIA T2 duty free contract was awarded in January 2013 to a joint venture between Aer Rianta International (ARI) and Buddy Retail. However, this will now not proceed after the alliance ran into difficulties over securing regulatory approvals and licenses in time to meet the operational deadline, and the contract was terminated.
Instead, following tense and highly sensitive talks with all concerned parties over recent weeks, the DFS/Flemingo alliance is operating on a short-term contract until (or if) a final, long-term agreement is concluded.
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DFS and Flemingo, at first considered an unlikely partnership, have forged a successful alliance since striking an agreement in 2008 to jointly operate the duty free concession at Chhatrapati Shivaji International Airport |
Neither the airport nor any of the retailers concerned were commenting today on the surprise development, which will come as a big disappointment to Aer Rianta International. It is another example of just how difficult setting up a duty free business in India can be.
The ARI/Buddy partnership is not the only prospective retailer at T2 to have experienced difficulties. South African retailer Tourvest (with local partner Bombay Swadeshi Stores) was initially awarded a destination merchandise concession but has also not proceeded with its main Out of India store. However, Tourvest Travel Retail CEO Eric de Jager told The Moodie Report that the partnership will open a smaller Out of India store in a pier location. “We would very much like to be part of this airport development and are still in discussions with MIAL regarding the appropriate look and feel,” he said. “In many respects the smaller store will act as a test in terms of the look, feel and product range, which, depending on market response, will add to the development process of the flagship store.”
Subject to gaining its Customs license, The Nuance Group (India) is set to run the fashion, luxury and lifestyle duty free concession. This contract includes luxury and premium fashion apparel; fashion accessories; jewellery, watches, and luxury concepts spread over an area of approximately 1,179sq m.
The Moodie Report has confirmed that the DFS/Flemingo partnership received its license last night to trade at T2 and has opened temporary shops today in time for the first arriving and departing flights.
MIAL said that an Air India flight from Singapore will be the first arrival at 1300 hours while a Jet Airways London-Heathrow service will be the first flight to take off, some 20 minutes later.
As reported, the spectacular T2 features over 21,000sq m of retail, food & beverage and other consumer services at the airport.
We’ll bring you follow-up and analysis of the Mumbai developments in due course.
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The new Terminal 2 is said to be one of the world’s most attractive airports with a major focus on promoting local art and culture |
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