Aena launches the world’s largest competition for the operation of ‘duty-free’ shops around the world. In order to increase its revenues, the Spanish airports operator will have more commercial space than ever before and has published the specifications for the tender it will obtain. Ending the monopoly that Swiss giant Dufry has ever had in the duty-free facilities of Spanish airports, following a head-to-head conflict between the two companies over store rental prices in the midst of a pandemic.
Existing concessions expire next October, and Aena is starting new concessions next summer with a view to getting them fully granted. At stake is exploitation 86 duty free shops with an area of 66,000 square meters – 35% more – at 27 airportsamong them, those with the most traffic on the network will generate revenue of around 18,000 million euros during the twelve years the contracts are valid (with the option of three more one-year extensions).
The new ‘mega contest’ comes with changes. Aena emphasizes that one of the aims of the new program is to increase competition and allow new operators to enter the Spanish market. In practice, company controlled by the Spanish State (51% stake through Enaire) giant will prevent Dufry from maintaining its monopoly of airport duty-free shopsAfter being the only successful bidder in the previous award.
80% limit
The new specification, announced to the public by Aena, increases the prize draws from three to six, grouping them according to airports; extends the concession period to twelve years, with the option of two more years compared to the current seven-year period, to fifteen years, in order to soften the investment plan for new candidates; Y prohibiting a single operator from receiving more than 80% of such rewards, According to María José Cuenda, Managing Director of Aena Trade and Real Estate, at the press conference.
A limitation that would allow new companies not currently located at Spanish airports to enter and prevent Dufry from taking full control after the legal challenge. rental amount resulting in a legislative change during the shutdown due to the pandemic and approved by Congress to lower rents until pre-COVID traffic improves, contrary to the Government’s criteria.
The new tender preserves the guarantees included in the contracts so far as a safeguard against extraordinary situations, such as during the pandemic. If passenger traffic is reduced by more than 50%, operators can reduce their rents by 30%. or more, depending on the intensity of stopping the activity.
six lots
Six batches divide the assessment of areas at Madrid airport, Barcelona airport, Canary Islands airports, Balearic Islands, Andalusia and Levante airports and airports in the north of the country. Operators can bid for one, two or three lots, but if they reach three they will have to bid for the fourth lot. Companies submitting bids for the Madrid-Barajas concession will also have to opt for northern airports (Galicia, Asturias and the Basque Country), where not only duty-free shops are located, but also 76 restaurants and specialty shops.
Aena also changed the way it evaluates offers. So far I have only considered economic offer submitted by candidates and now the evaluation will consider the technical and economic proposal of each of the proposals.
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