Interbaires lands 17-year extension from AA2000

Print Article E-Mail Article

Aeropuertos Argentina 2000 (AA2000) has granted Interbaires a 17-year extension to the retailer's duty-free contract.

The deal extends the contract from 2010 to 2027 with payment terms changing from a flat fee to a percentage of revenue. It is a huge boost for Interbaires especially as the retailer's parent company Exxel Group has been granted the duty-paid rights at AA2000's 33 airports.

As a result of the agreement, Interbaires will invest heavily in the airports, boosting retail space in Buenos Aires' main gateway, Ezeiza airport, by 50% over the next two years.

Interbaires ceo Randy Emch told TRW: "We have extended the term of our contract greatly; and we have expanded our space enormously, both the quality and the quantity. We have also extended into the duty-paid business-so the value of the business has improved dramatically."

AA2000 commercial director Marcelo Orfila was also upbeat about the deal: "This will develop the potential of the business in a very significant way," he said. "If Interbaires wins, the airport wins. Currently, they are losing a lot of sales because of the poor locations."

• An exclusive interview with Emch and Orfila appears in the September 1 issue of Duty-Free News International, out now.