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Aer Rianta International Director General Eamon Foley hopes that new concepts such as The Beach Hut and a new beauty area (pictured in drawing) will help drive spend from a British-dominated, high-spending passenger base |
BARBADOS. A 50/50 joint venture between Aer Rianta International (ARI) and local partner Caribbean Airways has been awarded a range of retail concessions at Grantley Adams International Airport (GAIA), following last year’s open tender for 16 concession packages.
The finalisation of the joint venture contract, first revealed in an interview with ARI Director-General Eamon Foley earlier this month, is a big boost for the Irish company as it seeks to broaden its geographic remit.
Local producers group Refinery Ltd has also been awarded a contract, running one of two liquor and tobacco concessions in Departures in competition with the ARI partnership.
Duty Free Caribbean Group, the joint venture between Dufry and local retailer Cave Shepherd & Co, is also understood to be close to concluding a multi-store agreement in Departures and Arrivals though other agreements have yet to be signed off, GAIA Commercial Manager Kay Richardson told The Moodie Report.
The ARI/Caribbean Airways contract runs for a five-year period with a two-year extension option. The partnership plans to trade as Runway Duty Free Barbados, picking up on ARI’s highly-succesful Runway brand name used in locations as diverse as Moscow Domodedovo and New York JFK T4.
Caribbean Airways is a local ground-handling specialist (it used to also operate as an airline) serving airlines at Grantley Adams and currently operates the sole Arrivals duty free shop.
A new joint venture company, Caribbean ARI Inc, will operate the exclusive fragrances & cosmetics concession in the Departures area, covering 1,848sq ft of retail space, trading as Runway Beauty. It will also handle liquor and tobacco, confectionery and fashions and accessories in Departures.
The liquor and tobacco area will have 1,965sq ft of space, fashion will embrace 522sq ft and an outlet called “˜Voyager’ will cover 489sq ft, selling confectionery and other items.
A 617sq ft store called The Beach Hut will sell sunglasses, beach items and gifts in Arrivals. All the outlets will be sited in the airport’s new terminal building and are expected to open later this year.
ARI Director General Eamon Foley said he was delighted to have won these important concessions and to enter a partnership with a company of the stature of Caribbean Airways. “This is our first operation in the Caribbean region, and with our partner we plan to extend its operation to other airports in the region,” he said.
He told The Moodie Report: “It’s a good opportunity for us and we’re obviously very pleased with the exclusivity on fragrances and cosmetics. We’d be happy about the business just as a stand-alone in its own right but we certainly are not in the Caribbean to operate in Barbados alone so we hope to be able to extend into other locations.
“The passenger profile in Barbados is very good. Over 50% of passengers are British and they are holiday makers. So from a spend point of view it is very good and we know that passenger well. ”
The success is an important one for Aer Rianta International, currently under the control of Dublin Airport Authority following the break-up of the former Aer Rianta. The group’s new management has stated its commitment to both international and Irish travel retailing and this tender victory will help underpin that conviction.
Foley agreed, commenting: “Yes it’s nice to get a win. Quite a lot of the things we have been doing over the past 18 months or so have not been so much in the public eye – extensions and other retail developments – but this is important new business won in a high-profile public tender.”
MORE STORIES ON GRANTLEY ADAMS INTERNATIONAL AIRPORT
ARI pledges to showcase “best in retailing” at Cyprus airports as 25-year contract begins – 04/07/06
Grantley Adams International Airport contract decision expected soon – 19/05/05
Grantley Adams airport in Barbados invites tenders for 16 retail concessions – 07/01/05
