Paraguay tender looms as Bright Star contract is annulled

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Paraguay's civil aviation authority has confirmed the suspension of operator Bright Star Duty Free's contracts at Asuncion airport.

A new presidential decree has annulled the duty-free contracts and declared that an open tender should be held for the concessions, the first to be awarded in Paraguay's airports. The tender will be held in the new year.

TRW understands that the contract suspension came after protests from other retailers, who argued that the granting of a licence without a public tender contravened the country's competition laws.

According to Dr Augusto Fuster, the president of civil aviation authority Direccion Nacional de Aeronautica Civil, the new decree does not challenge the opening of duty-free shops.
"The establishment of duty-free shops in Paraguay is not under question," he said.
"Bright Star rented space from us in the airport of Asuncion and would still have the right to operate shops. But it will have to take part in an open tender, along with other companies who are interested, if it is to open."

Fuster added that there may also be tenders at other airports, such as Guarani Internacional. Grupo La Petisquera has been operating an airside outlet there for over two years, where it offers duty-free prices by absorbing the duties on many items.