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Auckland Airport calls for duty free tenders

22-May-2007

Auckland International Airport Limited (AIAL) has called (21-May-07)

for tenders from its existing duty free retailers, The Nuance Group (trading

as Regency Duty Free) and the DFS Group, for the operation of a single on-airport

duty free business until Jun-2015.

The current licences expire in Aug-09. However, in conjunction with the existing duty free operators, AIAL has elected to proceed with a tender now. This will allow the new duty free arrangements to be finalised prior to the opening of the new duty free space in the USD73 million international terminal expanded arrivals project. The project, which is anticipated to be completed in Apr- 08, will double the arrivals duty free space from 800 msq now to 1600 msq. This will significantly enhance the size and scope of the arrivals duty free offer.

The tender process anticipates a phased approach from Apr- 08 to Aug- 09 during which time the airport will migrate from the two duty free operators currently to a single operator.

The Nuance Group and the DFS Group have been operating at Auckland Airport for over 10 years. They are two of the largest duty free operators in the world.

General manager retail, Nick Forbes, says "AIAL believes that the successful tenderer under a single operator model will significantly enhance the airport retail experience and make the duty free offering more attractive to travellers. In particular, travellers will be offered a much broader variety of products and more product choice within product categories. This can be achieved by using the terminal space more efficiently and avoiding duplication of products".

A single operator model is consistent with many international airports around the world, including Sydney, Melbourne, Brisbane and Christchurch airports. AIAL will also retain "The Collection Point" services in the international terminal. The Collection Point provides for the collection of off-airport duty free and tax free sales for nearly 160 retailers throughout New Zealand.

Tenders close on 15-Jun-07 and will then be considered by AIAL. Further details are expected to be announced in Jul-07.

AIAL is also currently considering proposals for car rental and banking and foreign exchange services at Auckland Airport. Details of these tenders are expected to be announced shortly.


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