US. Los Angeles World Airports (LAWA) is negotiating a short-term renewal of the duty free concession at Los Angeles International Airport (LAX) through to the completion of its Tom Bradley International Terminal modernisation in 2013.
With incumbent DFS Group’s concession term due to expire at the end of May 2010, the extension could provide the LVMH-led group with a further three years of operations at LAX.
Tom Bradley International Terminal currently accounts for approximately 70% of airport duty free sales.
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Amy Shaw: An airport-wide duty free concession will be tendered in time for modernisation project |
“An RFP for airport-wide duty free concessions will be issued in time for the opening of the Bradley West modernisation project, which will encompass a Great Hall expected to be completed by 2013,” Amy Shaw, LAWA Deputy Executive Director for Concessions Management, told The Moodie Report.
The Great Hall plus concession space along the boarding gate concourses will provide additional space for food & beverage and retail concessions.
After the extension term LAWA will tender the duty free concession. “This will be an airport-wide contract in order to develop an expanded duty free/travel retail programme that will respond to the unique demands in each terminal, particularly the Tom Bradley International Terminal,” Shaw explained.
The duty free shops will all be located post-security with approximately 37,000sq ft of space planned.
LAWA is currently assessing a schedule to issue an RFP for food & beverage, retail and personal services concessions in Terminals 2, 4, 5, 7 and 8 and plans to tender Terminals 1, 3, and 6 later in the year.
LAX TRAFFIC FLAT AT BEST
At Los Angeles International Airport (LAX), LAWA forecasts this year’s passenger traffic to be flat or slightly down compared to 2008 levels, Shaw advised.
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“By the end of 2009 we will have experienced a full year of the cuts that airlines implemented in September 2008, and there is a significant impact from the global downturn in the economy.
“However, some of that loss will be balanced with several new airlines beginning service at LAX, including V Australia, JetBlue and Allegiant; some airlines announcing return of service on routes that they cut last year; and the introduction of new, larger aircraft such as the Airbus A380 late last year.”
Notably, LAWA forecasts a slight increase in international passenger numbers. According to a recent LAWA bond issuance report, enplaned international passengers are expected to grow from 8.6 million in 2008 to 8.7 million in 2009.
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