ISRAEL. Israel Airports Authority (IAA) today issued its much-anticipated tender for the duty free operations at Tel Aviv Ben Gurion Airport terminals 1 and 3.
Bidders can make offers on either or both businesses, Israel Airport Authority Commercial Manager Commerce & Business Development Department Einat Eliraz confirmed to The Moodie Davitt Report. “Each one of the participants can give more than one bid, so that they can maximise the potential of the tender,” she said.
The contract/s run for seven years from 1 January 2018 with a three-year extension at the Authority’s discretion.
Submissions are due by 9 August.
The two-terminal tender is a result of the full re-opening of Ben Gurion Airport T1 to international departing (not arriving) passengers on 19 June.
The T1 change of status will dilute traffic at the existing international T3 (around 1.5 million of the airport’s current 9 million departing international passengers will fly from T1 but will arrive back at T3.) Passengers flying from T1 will be able to order their duty free goods on departure and pick-up on arrival at T3, Eliraz said.
The T3 incumbent is JR/Duty Free, which will open a new store of nearly 500sq m at T1 on 1 June for the balance of this year under its current contract. As reported, JR and Heinemann entered a joint venture earlier this year for future contracts. Given that the alliance has since been approved by the Israeli Antitrust Authority, it seems likely that the two parties will bid together on the new operation/s.
Eliraz told The Moodie Davitt Report that the last-minute shops at the end of each concourse (Ben Gurion has three, soon to be four, concourses) will be doubled in size as part of the enhanced contract.
She said that widespread interest has already been shown in the T1/T3 opportunity. “We know that a lot of the big international companies are very interested in this tender,” she said.
As reported, Israel Airports Authority (IAA) last month issued a tender for the duty free concession at the new Eilat Ilan and Assaf Ramon Airport near Eilat, which opens later this year.
The contract covers airside domestic and international duty free and duty paid sales.
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