CHINA (MACAU). Macau International Airport Company Limited (CAM) has announced that it has completed the evaluation of bids for the airport’s recent duty free tender, with results now “at the approval stage”.
In the statement released on 18 July, CAM reported a +18.0% growth in total revenue to MOP510 million (US$63.9 million) for the first half of 2014. Aeronautical revenues grew +21.5%, while non-aeronautical revenues, led by King Power Group Hong Kong’s duty free offer, increased by +17.5%.
Macau International handled 2.61 million passengers and 25,000 aircraft movements with a year-on-year increase of +10.7% and +8.6% respectively. Passenger growth was driven by the launch of two new routes in the first to Dalian, China, and Siem Reap, Cambodia, connecting the airport to some 38 destinations.
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CAM Chairman of the Board of Directors Ma Iao Hang speaking at the presentation of Macau International Airport’s first half results on 11 July |
As reported, CAM issued a request for proposals (RFP) for the duty free concession on 10 April, with bids closing on 3 June and an award set tentatively for July following interviews and presentations in June.
Incumbent King Power Group (Hong Kong) has operated on an exclusive basis at the airport since 1995, rejuvenating the offer successfully in recent times. Its contract expires on 6 November 2014. For this first time, CAM has opted for a split concession offering broadly like-for-like offers. King Power is likely to have faced strong competition from (among) China Duty Free Group; a partnership between Sky Connection and The Shilla Duty Free; Lotte Duty Free; The Nuance Group, LS travel retail and others.
Macau International handled just over five million passengers in 2013 (and has total capacity of six million) and currently has 2,260sq m of shopping space. Non-aeronautical revenues rose by +15% in 2013, ahead of a +12% passenger increase.
Besides the tender, the first half of 2014 saw a series of enhancements made to the airport, including an extension project, the opening of a new CIP Lounge and new restaurants and other construction upgrades.
For the second half, CAM said it will continue to enhance its routes diversification, add or rebuild facilities to provide better service, and also update airport amenities in line with its “˜Green Airport’ and “˜Virtual Airport’ goals.
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Non-aeronautical revenues at Macau International grew +17.5% in the first half |
