Keflavik awaits second appeal verdict in competition saga

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A new appeal in the long-running competition case at Iceland's main airport threatens to delay the retail selection process by a further six months

Keflavik airport landlord Leifur Eiriksson Air Terminal has suspended its retail pre-qualification process until the Icelandic supreme court delivers its verdict on a second appeal in the airport's long-running competition case. The new action, which follows a complaint against the landlord lodged by principal retailer Icemart, is likely to delay the allocation of retail space by a further six months.

Leifur Eiriksson initially aimed to complete its retail selection by November 2002, but the process was postponed while the Icelandic Competition Committee investigated claims that the landlord had unfairly allocated the best sites and most profitable product categories to its own stores. The committee ruled in favour of Leifur Eiriksson, but asked the company to split its landlord and retailer operations. Icemart's first appeal, to Reykjavik's district court, was rejected earlier this month.

A Leifur Eiriksson spokesman told TRW: ?The competition authorities have accepted that the company has the right to allocate space and categories as it sees fit, as with owners of shopping centres and other terminal buildings around the world. The selection of catering, leisure and all other commercial activities will go on as planned, but we will suspend the retail process until this issue is resolved.?