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Nuance to gain from Antalya passenger redistribution?
Nuance to gain from Antalya passenger redistribution?
Gavin Lipsith
11-Jul-2005
Reports suggest that Turkish airport authority DHMI could rearrange operations to boost traffic through its old terminal one, where The Nuance Group runs outlets
German airport group Fraport has revealed that it is hopeful of reaching a deal with Turkish airport authority DHMI to bring passengers back to Antalya terminal one, where The Nuance Group subsidiary Net Magaza Isletmeciligi operates outlets. Fraport, which is part of the consortium managing T1, told the Frankfurter Allgemeine Zeitung that DHMI had agreed to the move in principle.
International passengers were diverted from T1 to the new T2—where Gebr Heinemann company Unifree runs retail—earlier this year, and Fraport claims that passenger numbers at the old terminal have dropped by 53% since April, when the new terminal opened.
The airport company has been pursuing damages from the Turkish authority, claiming that Antalya will contribute between $12m-18m less to Fraport's earnings this year than in 2004 because of the new terminal. But according to the report DHMI is willing to consider a more balanced distribution between the terminals.
The news will be welcomed by The Nuance Group—prior to the opening of the new terminal industry sources suggested that the retailer was considering reducing its staff at T1 to offset losses there. Gebr Heinemann, on the other hand, will be hoping the move is not made after recently investing in new Unifree duty-free outlets in T2.
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(15-May-2006) - TURKEY. Turkish airport authority DHMI has approved the redistribution of passenger traffic between Antalya airport terminal one, run by Fraport, and the new T2
(28-Apr-2006) - Turkish airport authority DHMI has confirmed that passenger traffic at Turkey's Antalya airport will be redivided between terminals one and two
(15-Jul-2005) - TURKEY. National airports administration DHMI is close to upholding a request to distribute passenger traffic between Antalya airport terminals one and two more evenly, DFNI has learned
(15-Dec-2005) - TURKEY. Antalya airport is set to implement a 50:50 split in passenger traffic between its two terminals by next January, following negotiations between airport administrator DHMI and the consortium that operates terminal one
(25-Apr-2007) - TURKEY. The Nuance Group has ousted rival Gebr Heinemann at Antalya airport by securing a deal as the exclusive duty-free operator at all terminals until 2024. Nuance signed a memorandum of understanding with the Fraport and IC Holding consortium, which won the right to operate all terminals earlier this month.
The contract is estimated to be worth $4.3bn (e3.2bn) to Nuance. Its Turkish subsidiary Urart, a joint venture between Nuance and Net Holding, has managed the terminal one duty-free concession since 1998 and currently operates the main departure and arrival duty-free shops as well as 16 speciality shops, which total 1,850sq m (19,906sq ft). The contract starts in September 2007 and will initially cover T1. From September 2009, Urart will also operate at T2 and the domestic and CIP terminals.
The airport welcomed 14.8m passengers in 2006 so it’s no wonder Nuance was delighted with the contract win, which is a serious gain in terms of contract size, length and passenger numbers. The contract, which runs for 17 years, will no doubt encourage the group to opt for long-term investment knowing it will still be around to reap the benefits.
The Nuance Group president and CEO Roberto Graziani said: “We are absolutely delighted to have been chosen as the exclusive duty-free partner for Fraport and IC in this hugely important project for the development of tourism in Turkey.”
There is no doubt that Urart’s relationship with Fraport at T1, where they have worked together for nine years, was among the factors which swung its victory over Unifree. Since Gebr Heinemann-controlled Unifree opened its stores at T2 in June 2005, the two retailers have fought over the passenger traffic between the two terminals. Turkish airport authority DHMI settled the feud by redividing the passenger traffic between terminals one and two, but this exclusive deal means that the scales are finally tipped in Net Urart’s favour.