Fresh tender for Indian airports duty-free and jewellery

Print Article E-Mail Article

The Airports Authority Of India (AAI) has announced a global tender notice for the development and operation of new duty-free shops at Guwahati, Jaipur, Lucknow and Amritsar International airports and additional shops at Thiruvananthapuram International airport

The concessions are for a five year term, individually for each store.

In addition the tender notice calls for bids for jewellery shops at Lucknow, Bangalore and Jaipur. The duty-free and jewellery outlets cover an area of 10sq m (108sq ft) to 20 sqm (215sq ft) at all the airports. Tender documents are available until September 24 2002.

The AAI announced a separate space licence fee and a Minimum Annual Guarantee and percentage of turnover rent will apply. In the case of Guwahati, Jaipur, Lucknow, Amritsar and Bangalore airports the licence fee is set at $ 17 per square metre per month and at Thiruvananthapuram airport $32 during the first year of the contract, increasing by 10% per year during the subsequent years of the agreements.

In addition to the space licence fee the AAI asks tenderers to project their annual guaranteed gross turnover and offer a percentage as a guaranteed royalty payable to AAI (Minimum Annual Guarantee). Additional royalty is to be paid if the actual turnover exceeds the projected guaranteed turnover.

Minimum bid requirements are for five years' experience of operating duty-free shops during the last ten years and annual turnover of at least Rs700m ($16.6m) in the last financial year or previous years. In the case of jewellery concessions, operators must have a minimum of two years operating jewellery shops in the past four years and annual turnover of at least Rs700m.

AAI said tender documents will not be issued to certain barred companies or those concessionaires in rental disputes including previous or existing operators at Mumbai, Delhi, Chennai, Kolkata and Thiruvananthapuram airports.