AENA will launch tax-free tenders at Spanish airports in the fourth quarter of 2022
SPAIN. AENA plans to launch tenders for duty-free contracts at 26 airports in its Spanish network in the fourth quarter of 2022, with new concessions starting on November 1, 2023. Incumbent operator Dufry’s contracts end on October 31, 2023, after AENA elected not to exercise the option of a two-year extension until 2025 (see below).
The airports group shared the news with The Moodie Davitt Report before releasing it to other media later on Friday, noting that Spanish airport activity is “one of the largest in the world” in terms of turnover. duty free business.
AENA said it will start the process by selecting an advisor to develop the bidding strategy and plan the contractual relationship with potential partners.
Through this process, AENA said it would identify its preferred business model with several key objectives in mind. This includes establishing “the most appropriate contractual relationship and attracting as many international operators as possible”. AENA said it also aims to diversify the business, adapt to changing trends among passengers and business models in the industry, and develop and implement new technologies across all operations. .
The consultancy contract will last up to 36 months and will include the preparation, drafting and monitoring of tender documents and the tender process.
The consultancy will include several phases: an initial analysis of duty free activity worldwide to establish the auction strategy and contractual relations; and subsequent drafting of tender documents, as well as consultancy services during the tender process.
Through Dufry, AENA currently has four duty free contracts in 26 airports, with 88 outlets occupying over 43,000 m².
As noted, AENA network airports served almost 120 million passengers in 2021, representing a +57.7% year-on-year increase but only 43.6% of pre-pandemic 2019 traffic .
In September 2019, AENA announced an extension of Dufry’s concession for up to five more years, as his contract at the time was due to expire on October 31, 2020.
This extension included an initial term of three years until October 2023 (currently in effect) and an option to extend the agreement in two stages for one year at a time, alongside a store investment program.
However, last November AENA said it would not extend any contracts affected by a new law that changed the basis on which concession fees are calculated at its airports during the COVID-19 crisis.
This law, which entered into force in October after approval by the Spanish Congress of Deputies (Parliament), stipulated that the guaranteed minimum annual rents (MAG) payable at Spanish airports were not due for the period between March 15, 2020 and on June 20, 2020. In addition, these have been reduced proportionately from June 21, 2020 by comparing the drop in passenger volume at Spanish airports to 2019 passenger levels. This formula will remain in place until the number of passengers returns to that of 2019.
Speaking to investors in November, AENA confirmed that the company would abide by the law, but would not renew any contracts binding it to reduced rent.
As he did not adopt the two-year extension option in Dufry’s contract, the retailer’s term will end on October 31, 2023.
More information on this story can be found here.
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