KUWAIT. The incumbent duty free retailer, Dufry-owned World Duty Free and partner That Es-Salasil, faces multiple challenges for the five-year duty free contract at Kuwait International Airport’s new Terminal 4.
A pre-bid meeting on Sunday was attended by ARI, Chalhoub Group (a former operator at the airport), Lotte Duty Free, World Duty Free/That Es-Salasil and four local companies. Bids close on 26 August.
As revealed by The Moodie Davitt Report, the airport operator is seeking a partner to manage the duty free contract at T4, where passenger flights will be phased in from 8 August, with full operations from October. The terminal, located around 1.8km from the existing airport, will be used exclusively by national carrier Kuwait Airways.
Incheon International Airport Corporation (IIAC) has a contract for management, training, maintenance and services at the 55,000sq m terminal. T4 has around 4,620sq m of commercial space with the duty free concession covering 13 stores across 1,578sq m.
World Duty Free and That Es-Salasil run the duty free business in around 750sq m of space at Kuwait International T1. In late 2014 the partners struck a five-year agreement effective from 1 March 2015 (with an extension option). They have been operating at the airport since 2006.
Passenger volume at the new terminal is expected to grow at a rate of around +5% per year over the coming five years (from a base of around 4.4 million in year one), said IIAC.
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