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T3 involves big guarantees but has big potential, says Tawfik Assy |
EGYPT. EgyptAir Duty Free has signed a contract to operate the duty free retail at Cairo Airport Terminal Three, which is due to open in early 2008.
As reported, airport operator Cairo Airport Company announced earlier this month that it had stopped the retail tender process for the long-awaited T3.
In August the company issued a Request for Qualification for the T3 retail concession through The Moodie Report. Resultant interest was heavy, with the RFQ attracting several big international and regional names. These included Aldeasa, Alpha Airports Group, Dufry, EgyptAir Tax Free Shops (supported by consultant Aer Rianta International-Middle East), Egypt For Duty Free, and The Nuance Group (both alone and in alliance with Cairo Airport Duty Free).
Cairo Airport Company instead opted to work with incumbent airport retailer EgyptAir Duty Free, reasoning that T3 would be used by the retailer’s owner, national carrier EgyptAir.
EgyptAir Tourism & Duty Free Chairman Tawfik Assy told The Moodie Report today: “We have signed the T3 contract and we are now in the process of legal formalities. It is an exclusive eight-year contract from March 2008.
“Aer Rianta International-Middle East (ARI-ME) will continue as our consultants. They have done a good job to date.”
EgyptAir Duty Free is paying big money to run the operation. “The contract MAG is US$21 million or 30% [of sales], whichever is higher,” Assy told The Moodie Report.
But he was confident of growing the business significantly on the back of increased capacity. T3 will have a maximum capacity of 11 million passengers, with T1 and T2 offering a further capacity of 9 million (they are currently functioning over that limit).
