Sydney explains managed concession approach

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Gavin Lipsith

28-Feb-2006

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The airport outlines the partnership-driven logic behind its current duty-free request for proposals

Sydney International airport's managed concession approach to its recently published duty-free request for proposals aims to play on the individual strengths of airport, retailer and key suppliers to optimise business at the airport, the company has told DFNI Asia. By adopting the managed concession format – not, as previously reported, a management concession – the airport hopes to encourage partnership between all parties involved.

General manager retail and commercial development Bob McFadyen said: "The model is a concession-based agreement coupled with the formalised participation of both parties in relation to strategic planning, sales growth initiatives, customer service, marketing and business performance."

The model is intended to assign responsibility and risk according to each party's competencies, said McFadyen, and aims to avoid skill overlap while drawing synergies between airport owner, retailer and key suppliers to grow the business.

McFadyen confirmed that formal responses from bidders were due by April 19, and added: "There will be much evaluation and discussion between that time and when the decision is taken."

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