Sydney airport duty-free goes to tender in early 2006

Dermot Davitt

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Sydney praises partnership with Nuance, cites big interest in the business

Sydney Airport Corp has confirmed that it will re-tender its duty-free contract in early 2006. The A$220m ($164m) a year business has been operated by The Nuance Group since it acquired Downtown Duty Free in the mid-1990s. Its contract expires on October 31 2006.

Sydney Airport Corp executive chairman and chief executive Max Moore-Wilton said that the airport "has an excellent working relationship with Nuance", its current operator. He said: "The decision to take the contract to market is reflective of changes within the tourism retail industry, the general evolution of duty-free and renewed interest of duty-free operators in being part of Sydney Airport's high-profile and well performing duty-free business. This is the first opportunity since privatisation to interact with the market about Australia's largest duty-free business and the exciting opportunities that lie ahead."

He added: "The current partnership with Nuance has brought about significant innovations and developments, and as a result created a world class duty- and tax-free shopping environment for passengers. This is the type of professionalism, commitment and involvement we will be seeking moving forward."

*Full details and comment will appear in the September 1 issue of DFNI, out next week.