Baljet: Changi low-cost bid didn't make sense

John Rimmer

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The outgoing Dufry Sharjah deputy COO tells the Middle East Duty Free Conference why the retailer declined the chance to bid for retail contracts in Singapore's new low-cost terminal

Dufry Sharjah deputy COO Jan Baljet has revealed why the retailer declined the opportunity to bid for business in the new low-cost terminal at Singapore Changi airport. Baljet, who is to leave Dufry on January 1, cast doubt on the profitability of retailing at the terminal, where so far only Tiger Airways has confirmed its presence.

Speaking at the Middle East Duty Free Conference in Dubai, Baljet said: "We decided not to participate as we don't believe in a low-cost terminal at Changi. Only one airline has signed up and we had to ask ourselves whether we could make money there. Changi is a difficult business that relies on short-term concessions. There are no figures available on the low-cost terminal yet the airport is asking retailers to invest in it."

Baljet hinted that Dufry would wait to assess the impact and viability of the terminal before considering bidding at a later round of tenders.