AAI relaunches duty-free tenders

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The Indian airport authority is hoping for a greater response to new space at mumbai, Delhi, Trichy and Kolkata airports

The Airports Authority of India has reopened tenders for additional duty-free space at Delhi, Mumbia, Kolkata and Trichy airports. The original tenders in October 2003 drew no interest, with retailers claiming unfeasible rents and restricted space.

AAI is offering 175sq m of arrivals space and 44sq m in the departure lounge at Delhi, 51sq m in arrivals and 415sq m in departures at Mumbai, 65sq m in arrivals at Kolkata Metro and 15sq m each in arrivals and departures at Trichy.

Bidders for space at Delhi, Mumbai and Kolkata will be expected to pay a monthly licence fee of $42.6 per square meter, rising 10% each year of the five year tenure, as well as an annual royalty of not less than $5,269 per square meter. At Trichy the monthly fee is $20.6 per square meter and the annual royalty is $1,116 per square meter.

AAI is seeking operators with at least five years' experience of running duty-free outlets and generating turnover of over $16.67m from its stores. In the previous tender King Power Hong Kong and Alpha Retail considered bids for Mumbai and Delhi but did not enter.

According to the Navhind Times 16.84m international passengers passed though Indian airports in 2003-04, up 6% on the previous year. International traffic is expected to reach 28.58m passengers in 10 years.