Keflavik tender process enters final stages

Gavin Lipsith

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Leifur Eiriksson Air Terminal has selected 30 companies to compete for retail contracts at Iceland's principal airport

Keflavik airport landlord Leifur Eiriksson Air Terminal (LEAT) has shortlisted 30 companies to be considered for retail contracts due to start in the second half of next year. Director of marketing Hrönn Ingólfsdóttir told RavenFox.com that LEAT had received 55 applications during the pre-qualification process, and said the company had been pleased with the quality of applicants.

?The next stage is to start talking with the applicants, review their business plans and then enter negotiations with the parties we are interested in,? she said. ?The process will take some months, but we expect to make an announcement in spring next year.?

The tender, which covers around 1,150sq m (12,380sq ft) of retail space, is for categories excluding those offered by LEAT's own store, which sells liquor, tobacco, confectionery, cosmetics and electronic goods. The tender process was scheduled to be settled by early 2003 but has been delayed due to a long competition dispute between LEAT and former Keflavik retailer Icemart. The dispute was resolved earlier this year when LEAT acquired Icemart, and the retailer and LEAT's own retail operations are to be merged into a separate fully-owned company next year.

The contracts offered by LEAT will run for five to seven years with options to extend. The life of the contracts will include a total redesign of retail space at Keflavik, due to be completed next year.