DFS extends at Los Angeles

Gavin Lipsith

Print Article E-Mail Article E-Mail Author

Several contracts due to expire next month have been extended until the end of the airport's concession programme review in 2007

Several concession agreements at Los Angeles International airport due to expire in May have been extended, including DFS Group's duty-free and speciality retail contract (until November 30 2007) and The Hudson Group's news and gift business (until May 31 2006).

Los Angeles World Arports' Karen Tozer told RavenFox.com that the authority had extended the contracts rather than retendered them because of the recently announced two-year review of the concession programme, in which the airport awarded a consultancy role to the Center for Airport Management (RavenFox.com March 9).

According to local reports, in 2003 shops and restaurants at Los Angeles airport, excluding duty-free, earned $6.17 per passenger—27 cents below the US industry average of $6.44. The report added that seven contracts had been extended.

The study's completion date coincides with the expiry date of 70% of the contracts governing those shops. The city's airport agency hopes to put each concession contract out to bid, hire new operators and build new storefronts by May 2007.