Auction to continue in Riga

Tina Milton

Print Article E-Mail Article E-Mail Author

The auction for the duty-free contract at Riga International airport will continue later this month after the process was halted because of a complaint from bidder Mono

The supervisory board of Riga International airport and the Department of Transport have decided to allow the auction for its duty-free contract to continue later this month. The four original frontrunners–Mono,  Aelia , BTV Duty Free and Inflight Service–will be able to bid for the five-year contract on March 25. About 186sq m (2,000sq ft) of duty-free space is available as part of Riga’s terminal extension.

The process was stopped last month after Mono, which Ravenfox.com understands tabled the highest bid for the original tender released in 2006, made a complaint about the airport's decision to hold an auction.  Riga marketing manager Artus Saveljevs said: “It was just a legal matter. The supervisory board took into account both sides of the argument and ruled in our favour so we can now continue.”

Under the contract terms the winner must contribute a percentage of sales plus a fixed rent, but at the auction bidders will be able to raise the stakes by offering additional rent per square metre.

The new store will sell most of the traditional duty-free goods apart from local products, which will be available in a separate outlet.  Saveljevs explained that the new duty-free shop would not open until May so it is hoped that the winning bidder will operate a temporary duty-free store until then.  “But the contract winner will need to acquire a licence to do this,” he added.