San Francisco considers DFS rent breaks - reports

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The airport's total rent relief to the concessionaire since September 11 2001 will stand at $34.2m if the latest proposal is approved, say local reports

San Francisco Oakland airport is to offer duty-free concessionaire DFS Group a $4.5m rent break, according to local reports. An article in the San Francisco Chronicle claimed that the airport, which is operated by Los Angeles World Airports, has proposed the latest cut in response to a 10% drop in traffic in 2004. If accepted by the city's budget analyst, the cut will take the value of rent breaks granted to DFS at San Francisco since September 11 2001 to $34.2m.

DFS signed a 10-year deal in 2000 to operate 29 duty-free shops in the airport's international terminal and, according to the Chronicle, guaranteed the airport at least $24m in annual rent or 20% of gross revenue. But following September 11 the airport dropped the rent guarantee, which last year stood at $18.9m.

DFS Group is owned by LVMH Moët Hennessy ? Louis Vuitton, which last week announced 2004 sales of over $16bn, up by 11% on the previous year.