DFA poised to retain Washington airports’ duty free concession

Of the two Washington airports, Dulles (pictured) is the key location for duty free sales

USA. Duty Free Americas (trading as Dulles Duty Free LLC) was the highest bidder in the duty free tender for Washington Dulles International Airport and Ronald Reagan Washington National Airport when financial offers were filed last month.

The company, which is the incumbent operator, ranked ahead of Nuance, Dufry, World Duty Free Group and Turkey’s ATÜ Duty Free.

Metropolitan Washington Airports Authority (MWAA) confirmed to The Moodie Report that DFA was the high bidder, with an offer of US$03.7009 per enplaned international passenger. When multiplied by the international enplaned passenger number included in the solicitation, the MAG translates as US$12.89 million, the airport company said.

The business across both airports had gross sales of US$23.2 million in 2013, according to MWAA. The concession term is seven years.

The Authority said it would not confirm the award until after the contract is “fully executed”.

Duty Free Americas’ existing concession has been extended beyond its 31 July expiry date to allow for the contract to be finalised.

The contract covers seven locations at Dulles and a further two at Reagan National. The post-security locations at Washington Dulles International are located in concourses A, B, C and D. The seven locations contain around 10,830sq ft of space.

At Washington National spaces are available in terminals A and C. In conjunction with the authority’s renovation of Terminal A, a new space will open in mid to late 2015.

There is also a minority partner (ACDBE) requirement of 25% in the venture.

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