Auckland to migrate to single operator model

Tina Milton

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DFS Group and The Nuance Group subsidiary Regency Duty Free will battle for the contract to operate a single duty-free business at Auckland International airport

Auckland International Airport Limited (AIAL) has called for tenders from its existing duty-free retailers The Nuance Group (trading as Regency Duty Free) and DFS Group, to operate a single airport duty-free business until June 2015.

The current licences expire in August 2009.  However, in conjunction with the existing duty-free operators, AIAL has elected to proceed with a tender now.  This will allow the new duty-free arrangements to be finalised before the opening of the new duty-free space in the $100m international terminal's expanded arrivals project.

This initiative is expected to be completed in April 2008 and will double the arrivals duty-free space from 800sq m  (8,608sq ft) to 1,600sq m (17,216sq ft). This will significantly enhance the size and scope of the arrivals duty-free offer.

The tender process will take a phased approach from April 2008 to August 2009 during which time the airport will migrate from two duty-free operators to a single operator.

The Nuance Group and DFS Group have operated at Auckland for over 10 years and are two of the largest duty-free operators in the world. 

AIAL general manager retail Nick Forbes said: “AIAL believes that the successful tenderer under a single operator model will significantly enhance the airport retail experience and make the duty-free offer more attractive to travellers.

“In particular, travellers will be offered a much broader variety of products and more choice within product categories. This can be achieved by using the terminal space more efficiently and avoiding duplication of products,” said Forbes.

A single operator model is consistent with many international airports around the world, including Sydney, Melbourne, Brisbane and Christchurch.  AIAL will also retain “The Collection Point” services in the international terminal. The Collection Point provides for the collection of off-airport duty free and tax-free sales for nearly 160 retailers throughout New Zealand.

In addition to duty-free and tax free, other international terminal retail offers include New Zealand-made gifts, souvenirs and fine foods, fashion, jewellery and accessories, food and beverage, pharmacy and health products, books, news, music and games, currency exchange and other services.

Tenders close on 15 June 2007 and will then be considered by AIAL.  Further details are expected to be announced in July.

AIAL is also considering proposals for car rental and banking and foreign exchange services at Auckland airport.  Details of these tenders are expected to be announced shortly.