James Richardson launches legal action against Israeli Authority

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James Richardson, the operator of the main duty-free contract at Tel Aviv Ben Gurion airport, has initiated legal action against the Israel Airport Authority (IAA), alleging discrimination and illegal practices.

The move stems from the IAA's decision to extend the electronics and fashion contract of a local incumbent operator, described by Richardson as a "handout".

A statement from James Richardson said: "We understand that the terms of the extension are less favourable to the IAA than both the original contract and the amount that James Richardson offered in 1997 [when the initial contract began]."

James Richardson duty-free division chairman Garry Stock said: "We were extremely disappointed and saddened that we had to take such strong action, but we had no alternative. All we want is a flat playing field and a fair go. It seems there is one set of rules for an overseas based company such as James Richardson and another for local operators."

He added: "We find the IAA's lack of consistency to be disturbing and discriminating," citing the losses incurred over many years by paying $21 per outgoing passenger even if they did not shop with the retailer, plus the IAA's refusal to vary the terms of its confectionery contract despite the 70% fall in tourist traffic in 2001.

"The core of our case is this. If the IAA wants to give certain local operators a handout, that's fine, so long as James Richardson is treated proportionately favourably. Given that the IAA approached us in early to mid-December to ask if we would be in a position to take over the electronics contract (to which we replied 'yes and quickly') the IAA should either give it to James Richardson or call for a new tender."