Operator protests at ousting from Oman airports

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Oman's Duty Free Co (DFC), which was ousted from its duty-free concession at Seeb airport in January, has protested vehemently at the "abrupt" and "damaging" way its contract was ended.

The new airport authority, a consortium involving BAA, the Bahwan Group and ABB signed a 25-year agreement in October to manage and develop facilities at Seeb and Salalah airports. On signing the contract, said DFC, the operator was invited to discuss a nine-month extension to its contract from January, and put forward plans for a longer term extension.

While negotiations continued, said DFC, it received a letter from the consortium on January 19 instructing DFC to vacate the premises within 48 hours and end its business at the airport.

"Nothing was mentioned about the position of the inventory and assets or how DFC should end its business in an acceptable manner," said DFC managing partner Abdullah al Shanfari. "It was an absurd way of abruptly ending a duty-free business at an international airport."

DFC said it had no choice but to comply, but criticised the "deplorable" manner in which it had to leave the airport, "without clarification or explanation" and while negotiations continued. "At worst, DFC should have the chance to have various issues clarified. At best, the authority should have come to an acceptable and amicable settlement on ending the duty-free business with DFC."

DFC had six outlets, five of which were at Seeb airport. It employed 125 staff. The company said it was awarded a 15-year concession in 1993 as part of an agreement to refit the duty-free area.