EgyptAir poised to take contract at Cairo T3

Tina Milton

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EgyptAir Tax Free Shops, advised by ARI-ME, is in the final stages of negotiations with airport owner Cairo Airport Co to become the exclusive duty-free operator at Cairo International airport terminal three

EgyptAir Tax Free Shops, advised by Aer Rianta International-Middle East (ARI-ME), is close to completing a deal with Cairo Airport Co (CAC) to become the exclusive duty-free operator at Cairo International airport terminal three.

CAC chief commercial officer Jean-Pierre Tabet told RavenFox.com: “The contract has been signed in English but the ‘legal’ Arabic version has not yet been signed. This will be done once the Arabic version has been finalised."

The contract is for eight years from T3 "becoming operational", which is expected by March 2008, and will encompass a minimum annual guarantee of $21m or 30% of sales. In addition EgyptAir will pay base rent for the space as well as other fees for other services such as utilities.”

Tabet said: “Until T3 goes into operation the current contract with EgypAir remains valid and the MAG will remain unchanged. The variable fee will however increase from its current rate of 15 to 25%.”

He added: “All in all the terms are good for CAC because we expect to have an increase of the concession fee as a result of the contract being signed about one and half years ahead of T3’s operation. The contract gives EgyptAir Tax Free Shops the incentive to invest not only in T3 but also in its current facilities and the possibilty to start negotiations with suppliers for all areas of the airport. We are very optimistic that the cooperation between the retailer and Aer Rianta International-Middle East will further support the development of EgyptAir Tax Free Shops and its offering at Cairo.”