INDIA. Airports Authority of India (AAI) has launched a tender for the advertising concession at Chennai International Airport. The winning bidder will develop and manage 18,500sq ft of advertising space for a maximum period of seven years under the contract.
This will include the media assets in the airport’s New Integrated Terminal Building, which as reported was recently inaugurated by India Prime Minster Shri. Narendra Modi.
Indoor advertisement areas cover 11,558sq ft, while outdoor advertisement space covers 6,886sq ft.
AAI has proposed a Minimum Monthly Guarantee (MMG) of Rs.30.82 (US$0.38) per passenger (including departing and arriving international and domestic passengers).
According to the operator, bidders should be an advertising agency with a minimum of two years’ experience in operating contracts in the past seven financial years, and must hold concessionaire rights in mass transit systems such as Metro rail, airports, city corporations or shopping malls.
The financial criteria for the participant should be equivalent to 12 months of MMG, which equates to Rs.62,15,82,000 (US$ 7,588,597) of annual turnover during any one of the financial years cited by the candidate agency.
Online submission of bids is due by 3 May. On 4 May, technical bids will be opened, and the financial bids will be opened subsequently on 26 May.
Chennai Airport was the sixth busiest in India for financial year 2023 (to 31 March), with an estimated traffic of 18.6 million passengers, including 13.3 million domestic passengers.
For financial year 2023-24, estimated traffic is forecast at 24.3 million, rising to 51 million by financial year 2031-32. 
This feature forms part of our new Sight Lines section, dedicated to the world of airport and other travel-related Out of Home advertising and communications. It takes the same name as a successful ezine of the same name we published from April 2019 until the pandemic brought much of world travel to a halt. We are delighted to restore it, initially in column form, as the airport advertising sector bounces back with encouraging speed and vigour. All stories are archived under ‘Airport Advertising’ on the home page drop-down menu under ‘Other Revenues’.  Nowhere do the worlds of aviation and advertising converge more than in airports, often to riveting effect. Given how airports serve a crossroads of humanity, across geographies, cultures, religions, ages, advertising serves as a kind of Esperanto of the travel and communications world, a universal language that speaks to a population constantly on the move. Digitisation, once viewed as a threat to traditional airport advertising as millions of consumers looked down at their mobile devices rather than ahead (or up) at traditional advertising formats, has proved instead to be a positive game changer. Airports companies (and other travel infrastructure operators) and their concessionaires are increasingly deploying the flexibility and targetability of digital communication with thrilling impact. We’ll be devoting extensive coverage to this once again burgeoning sector with a surprise or two along the way. To borrow from both journalistic and advertising parlance, watch this space. * Send us your Out of Home advertising and communications stories to Martin@MoodieDavittReport.com |
