The City of Phoenix Aviation Department has postponed a retail request for proposals (RFP) for Phoenix Sky Harbor airport terminal three, used by carriers such as American Airlines, Delta Air Lines and KLM Royal Dutch Airlines, due to the global economic downturn. Retail sales at the location are down by 17% so far this year compared with the same period the previous year, and the airport authority hopes to attract better proposals when economic conditions are more favourable.
City of Phoenix Aviation Department business development manager Paula Kucharz told DFNIonline: “We felt that we wanted the operators and the city to see the best proposals come in, and given the challenges in lending and banking we thought it would be better to postpone the tender temporarily to see how things shake up. When we believe operators have an opportunity to obtain capital easily we will revisit and go ahead with that RFP.”
The airport has also implemented a rent relief programme to benefit all retailers excluding food and beverage operators, waiving minimum annual guarantees from July 1 to December 31 2009.