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THURSDAY 21 AUGUST 2008

REACH, RELIABILITY, RESPECT

“All the big players know what ishappening and they have all madecontact. This will be the biggestopportunity in India over thisperiod.” GavinMcKechnie, ChiefCommercial Officerat GMR-run DelhiIndira GandhiInternational Air-port, underlines thehuge prize on offerwhen commercial outlets at thenew Terminal 3, due to open in2010, go to tender later this year.

Nick Forbes: Auckland Airport’sGeneral Manager, Retail is boundfor the very differ-ent climes of Shan-non, Ireland afterbeing named to thekey new role ofGlobal OperationsDirector for aclearly still ambi-tious Aer Rianta International. TheAustralian has done a good jobacross the Tasman, as AucklandAirport’s full-year results (page10) this week confirmed. Now avery different challenge awaits.

Gerry Crawford: Another topindustry executive on the move toIreland – this timethough it’s a returnto his native landfor the Cyprus-based GeneralManager of CTC-ARI Airports as hetakes on the keyrole of Head of Retail at DublinAirport Authority. With a newterminal coming on stream, theoperation needs the best retailtalent – and it’s got it.

WELCOME to The Moodie Report.

‘What goes around, comes around. What goes up, must come down. –Alicia Keys, Karma

The American R&B songstress most certainly didn’t have the price of oil in mind when shepenned her hit song Karma. But we’ll gladly borrow her lyrics in celebration of this month’ssharp and unexpected tumble in the price of oil. That has direct repercussions for an avia-tion sector still reeling, and reining in capacity, from the soaring 2008 cost of jet fuel.

It’s not celebration time yet: oil remains as volatile (it’s edging up again to US$119 abarrel even as I write) and vulnerable as the troubled world around us. Nevertheless fewwould have believed the recent softening possible a month ago, as crude maintained itsseemingly inexorable rise, prompting several informed pundits to predict the US$200barrel by year-end. OPEC even predicts that world demand for fuel next year will fall toits lowest point since 2002. Let’s hope that’s true, but with one exception – aviation.

It’s great to be back with you after a two-week spell on the road, visiting airports inChina and India, in preparation for next month’s issue of The Moodie Report DigitalPrint Edition. From the majesty of the just-opened DFS Galleria Macao to the giantconstruction site that is Terminal 3 at Delhi Indira Gandhi International Airport, there’san exciting story at every turn.

Both markets loom large for most multi-national travel retailers. yet both are provingextremely difficult to crack. In India’s case every seemingly gilt-edged opportunitythrows up an even bigger-sized obstacle. It’s no place for the faint-hearted or for anyhomogenised international retail template. Look out for our special report: I promiseyou it’s a fascinating one.

Two Hong Kong-themed images this week: (Left) The winner in anenvironmentally themed poster design competition for students, run byNuance-Watson (HK). It's a welcome reminder that an industry (perhapsnecessarily) obsessed by plastic bags needs to improve its green creden-tials. The second,delightfully celebra-tory image showsthe retailer’sAlessandra Piove-sana and AirportAuthority HongKong’s Eva Tsangmarking the former’sdecade-long airportsuccess story.

Images of the WeekImages of the WeekImages of the WeekImages of the WeekImages of the Week

QUOTE OF THE WEEK

PERSONALITIES OF THE WEEK

IATA jet fuel price monitor 15 August 2008

4 July Index* US$/ Cents/ US$/ Percentage change vs2008 barrel gallon mt 1 week 1 month 1 year

Jet fuel price 370.8 135.6 323.0 1,069.0 –1.8% –20.4% +56.9%

*100 in 2000 (US$0.87 per gallon) Source: Platts, courtesy of IATA

EUROPE. Passenger traffic at Europe’s airports rose +3.9% in the first half of 2008, according to the latest ACI(Airports Council International) Traffic Report. The report, which covers 107 airports, showed that growth slowed inJune, when passenger traffic increased +1.6% year-on-year.

Group 4 airports (airports welcoming less than 5 million passengers per year) had the largest increase in traffic – withan average increase of +3.6% compared with June 2007 – and +15.1% compared with June 2006.

Airports welcoming more than 25 million passengers per year (Group 1), airports welcoming between 10 and 25 mil-lion passengers (Group 2) and airports welcoming between 5 and 10 million passengers (Group 3) reported averageincreases of +1.1%, +1.4% and +1.9% respectively The same comparison of June 2008 with June 2006 demonstratesaverage increases of +5.4%, +7.7% and +6.7% respectively.

Examples of airports that experienced the highest increase in passenger traffic per group, when comparing June 2008with June 2007, include:Group 1 airports – Rome Fiumicino (+12.6%), Munich (+4.3%), Amsterdam (+3.6%) and Paris Charles de Gaulle (2.8%);Group 2 airports – Moscow Domodedovo (+15.2%), Berlin Tegel (+9.9%), Prague (+7.6%) and Vienna (+7.4%);Group 3 airports – Moscow Vnukovo (+19.7%), Milan/Orio al Serio (+17.4%), Lyon (+11.0%) and Berlin Schönefeld(+5.6%);Group 4 airports – Vilnius (+22.8%), Liege (+21.1%), Sofia (+20.7%) and Porto (+20.2%).

FRANCE. Aéroports de Paris (AdP)posted a -0.5% year-on-year decrease inpassenger traffic for July, but said interna-tional traffic remained “dynamic”. Parisairports handled 8.5 million passengers inthe month with some 6 million usingParis-Charles de Gaulle Airport (+0.8%)and 2.5 million moving through Paris-Orly Airport (-3.3%).

AdP said that the slowdown in traffic stemmed primarily from the domestic market (-3.7%) and Europe (-1.4%).Traffic on Schengen routes fell by -1.6%. The British and Irish markets recorded a decrease of -4%. Conversely, traf-fic on other international routes (except French Overseas Territoriesand Departments) remained dynamic, AdP said, with a +3.2% year-on-year increase.

The North American, Latin American and Caribbean markets rose by+7%. The African market decreased by -0.2% while a +2.4% increasewas recorded on routes to and from Asia and the Middle East.

Thursday 21 August 2008The Moodie Report


Moodie Interactive: Click on the image above

THE MOODIE REPORT DATA ROOM – TRAFFIC NEWS

Aéroports de Paris passenger traffic July 2008 vs July 2007

July Change Year to Change Rolling Change2008 on year date on year 12 months on year

Paris CdG 5,962,823 +0.8% 35,569,194 +3.2% 61,030,196 +4.3%Paris Orly 2,537,351 -3.3% 15,604,234 +0.2% 26,465,255 +1.1%Total 8,500,174 -0.5% 51,173,428 +2.3% 87,495,451 +3.3%

Source: Aéroports de Paris

Aéroports de Paris traffic by geographic area July 2008

Markets Share of Changetotal on year

EuropeDomestic 18.4% –3.7%French overseas territories & departments 3.6% –7.3%Europe 41.9% –1.4%

of which Schengen 30.1% –1.6%Other international

Africa 11.9% –0.2%North America, Latin America & Caribbean 14.1% +7.0%Asia Pacific & Middle East 10.1% +2.4%Total 100.0% –0.5%

Source: Aéroports de Paris

http://www.clinique.com



GERMANY. Frankfurt Airport suffered a -2.4% year-on-year fall in July passenger numbers. Parent companyFraport attributed the decline to the weakening business environment and a strike within the Lufthansa Group. With-out the impact of the industrial action, the decrease would have been about 0.4 percentage points smaller, Fraport said.Germany’s leading airport served 5,067,108 passengers in the month. For the first seven months of 2008, passengernumbers were up by +1.4% year-on-year.

Intercontinental traffic continued to be the only growth market (up +0.9%). Within that, South America, up +29.5%,“remained at the crest of the growth wave”, Fraport said.

The Fraport Group’s six majority-owned airports (Frankfurt, Frankfurt-Hahn, Burgas and Varna, Antalya, and Lima)together handled 8,481,597 passengers in July (up +0.5% year-on-year). Fraport’s Frankfurt-Hahn Airport low-costairport recorded 425,761 passengers – a gain of +3.5% in the vacation month of July.

The Fraport-managed terminals at Antalya Airport in Turkey registered 1,347,652 passengers and a +11.7% surge – thehighest growth rate in the group. Peru’s Lima Airport also posted a strong gain, up +6.5% to 758,508 passengers. With563,594 passengers, traffic at Bulgaria’s Burgas Airport eased by -0.2% while the Bulgarian Black Sea coast gateway,Varna Airport, posted a -10% year-on-year decline to 319,538 passengers in July.

INTERNATIONAL. The International Air Transport Associa-tion (IATA) has said that June passenger numbers confirm a slowinggrowth in worldwide passenger traffic.

However, passenger growth (measured in revenue passenger kilometres)was still up +3.8% in the month compared to June 2007. But growthwas down on the +5.4% monthly average recorded in the year to date.

IATA Director General and CEO Giovanni Bisignani said: “Althoughpassenger demand grew by +3.8%, this is the slowest growth that wehave seen since the industry was hit by the SARS crisis in 2003. Withconsumer and business confidence falling and sky-high oil prices, thesituation will get a lot worse.”

Key figures by regionn North American airlines saw demand growth drop to +4.4% (sharply down from the +8.2% growth recorded in May).

Domestic traffic in the US contracted by almost -4%.n European airlines saw growth of +2.1% (compared to +4.1% in

May). Declines in business confidence and industrial production inkey European economies may depress this further, said IATA.

n Asia Pacific airlines saw their international passenger traffic growthfall to +3.2% in June from +4.5% in May, influenced by weakeninglong-haul destination economies and inflation concerns.

n Middle Eastern carriers saw their traffic growth slow to +9.6% inJune from +12.8% in May. This is sharply down from the +18.1%recorded in June 2007.

n Latin American carriers turned in the strongest performance with+12.5% growth. Strong commodity-driven economic growth inLatin America is the driving force, said IATA.

INTERNATIONAL. Leading aviation and passenger trafficanalyst Air4casts has unveiled a sombre set of projections for finalquarter international passenger numbers.

“It is quite apparent that the air travel business now faces a period ofunprecedented difficulties,” it noted. “The latest forecasts, which arebased on partial June data, are indicating:n no more than a single point growth in the last quarter of this yearn the possibility of a +1.5% [year-on-year] rise next month [Septem-

ber]n somewhat better prospects for internationals within the total mix.”


IATA traffic growth, June 2008

Region Jun 2008 vs Jan–Jun ’08 vs Jun 2007 Jan–Jun ’07

Africa –1.5% –1.4%Asia Pacific +3.2% +4.8%Europe +2.1% +3.5%Latin America +12.5% +16.4%Middle East +9.6% +10.6%North America +4.4% +6.0%Total +3.8% +5.4%

Note: Figures are in RPKs Source: IATA

http://www.tissot.ch



By region there are some bright spots.The final-quarter breakdown is as fol-lows [percentage changes shown on ayear-on-year basis]:n Africa: +6.5%n Asia Pacific: +2.2%n Europe: +0.6%n Middle East: +9.6%n Latin America: +5.4%n North America: –1.3%n Total passengers: +1.0%

Air4casts’ 2009 forecast presently stands at+2.8% for total passengers and at +3.5%for the international sector. Air4casts saidthat both Asia Pacific and Europe are “atleast for the moment” projected to growby around three percentage points, andNorth America by just over one point.“However,” it cautioned, “the 2008 and2009 forecasts are bound to be subject tofurther downward revisions, the first ofwhich will be when the probably miser-able July actuals are incorporated into theforecasting model. The second will reflectthe new airline schedules for the autumnwhich set out some swingeing cutbacks.”

June passenger numbers are now avail-able from 425 airports and they show ayear-on-year increase of no more than+0.8%, Air4casts said. These airportsrepresent 71% of total world traffic forthe month and their throughputs hadbeen projected to rise by +2.8%.

Only 60 airports have so far published their July numbers, representingjust 6% of world traffic. Collectively they are up by +2.1%. The rate ofincrease for those same airports in June was +5.2% and the expectationfor July had been +5.3%. Please also visit www. www.air4casts.com

MALAYSIA. Malaysia Airports Holdings (MAHB) has reportedan +8.1% year-on-year surge in passenger traffic for the first sixmonths. In total 23.1 million passengers passed through its airports inthe period. Kuala Lumpur International Airport (KLIA) handled 13.4million passengers in the period, up +7.4% on the previous year. Cru-cially for travel retailers, there was strong growth in international pas-senger traffic both at KLIA and at other airports. At KLIA internation-al passenger numbers rose by a healthy +8.2% in the half to 8.8million. At other airports international passenger numbers grew by+10% to 1.4 million. Domestic traffic climbed by +5.8% at KLIA (to4.5 million) and by +9.0% at other airports to 8.2 million.

In June total passenger numbers at MAHB airports hit 4.1 million, up+7.2%. At KLIA, international passenger traffic grew by +5.9% to 1.5million, while at other airports the figure was 252,142, a rise of +4.7%.Despite the strong figures, MAHB warned that it expected a decline inpassenger traffic in the fourth quarter of this year, when higher faresare likely to curb consumer spending on air travel.


Selected traffic numbers reported in the past three weeks

Country Airline/airport/ferry company July ’08 vs July ’07 (%)

Source: ©The Moodie Report continued on page 7

Australia Brisbane Airport +6.2 (international)Austria Austrian Airlines Group -3.8 (total pax)Canada Air Canada -0.1 (mainline RPM)China Air China -19.4 (international)China Cathay Pacific +9.7 (total pax)China Hong Kong International Airport +1.3 (total pax)Denmark Copenhagen Kastrup Airport +0.4 (international)France Air France-KLM -0.3 (total pax)France Nice Côte d’Azur Airport -1.0 (international)France Paris Charles de Gaulle Airport +0.8 (total pax)Germany Frankfurt Airport -2.4 (total pax)Germany Lufthansa -1.4 (total pax)Ireland Aer Lingus +8.1 (total pax)Ireland Ryanair +18.9 (total pax)Japan ANA -1.6 (international)New Zealand Wellington International Airport +7.2 (international)Peru Lima Jorge Chávez Airport +5.7 (total pax)Russia Aeroflot +8.6 (total pax)Singapore Singapore Airlines +3.6 (total pax)Spain Madrid Barajas Airport -2.7 (total pax)Sweden SAS Scandinavian Airlines -1.5 (total pax)Tallink Tallink -3.0 (total ferry pax)UK easyJet +20.0 (total pax)US American Airlines -3.6 (total pax)US Continental Airlines -1.6 (mainline pax)US Hawaiian Airlines +11.1 (total pax)US Northwest Airlines -4.6 (total pax)US Southwest Airlines -2.7 (total pax)US United Airlines -4.8 (total pax)US US Airways Group +1.9 (international)

http://www.coty.com

NETHERLANDS. Amsterdam Airport Schiphol handled 22.8 million passengers in the first six months of 2008,an increase of +2% on the same period last year. The airport served over 4.4 million arriving, departing and transferpassengers in June, an increase of +3.6% year-on-year. The European Football Championships in Austria/Switzerlandcontributed strongly to this increase.

UK. BAA’s UK airportshandled a total of 14.8million passengers in July,a drop of -1.7% year-on-year. The Ferrovial-led company said that “acombination of a weak-ening economic climate,rising airfares and airlinecapacity cuts” meant thateach airport in the groupand most major marketslost ground in July. Yearto date BAA UK air-ports traffic shows adecline of -0.8% to 85.1million passengers.

Among key markets the most affected in July were European scheduled flights (-0.4%) and UK domestic (-4.5%). Thestimulus of Open Skies helped North Atlantic traffic to an increase of +0.6% but other long-haul routes saw a collectivedecline of -1.7%.

Heathrow was virtually unchanged on last year, thanks to Open Skies, showing an increase of around +6.5% in long-haul routes, but Gatwick’s losses from the same source due to the shift of long haul traffic to Heathrow contributed toan overall decrease of -1.8% despite an +11.9% increase in European scheduled traffic. Stansted was down by -5.3%.Each of the Scottish airports also recorded slight reductions on last July.



JAPAN. All Nippon Airways is set to hike its fuel surcharges on international flights for the final quarter, with mostroutes to incur double-digit increases. Travel Journal International (TJI) Online reported that the carrier – the country’ssecond-largest behind Japan Airlines – has applied to the Ministry of Land Infrastructure and Transport for approval toraise its surcharges on international routes from 1 October to 31 December. It cited the rise in the cost of jet fuel.

Owing to the continuing rise in the cost of jet fuel, Nippon Airways (NH) has filed for approval to raise its fuel sur-charge on international flights from 1 October to 31 December, with most routes to see a double-digit jump. TJInoted: “The fuel surcharge is fixed for a period of three months, after which it is revised on the basis of the averagemarket price of Singapore kerosene for the three months previous to the date of application for revision.”

Routes to Vietnam and Guam will see the biggest increase in surcharges, up +23.8% to ¥13,000. China routes take a+23.5% hit to ¥10,500. Routes covering North America, Europe, the Middle East and Europe will see a +17.9%increase to ¥33,000 while travellers to Hawaii – a destination already under cost-driven pressure – and India will pay¥22,000 more, up +10%. Routes to Thailand, Malaysia and Singapore will remain unchanged with a ¥20,000 surcharge.

The airline said that the fuel surcharge will not be revised for the three months regardless of market movements (overthe past month the price of oil has dropped by around -20%). But it held out the prospect of a downwards revision forthe first quarter of 2009. If the three months average cost of Singapore kerosene falls below US$60 per barrel the fuelsurcharge will be removed altogether, said the carrier.

[Oil price update: Prices bounced back this week as the US Dollar weakened and US investors worried that a predictedfall in gasoline supplies could cause refineries to step up crude use. As a result, US crude for September delivery roseUS$1.66 a barrel to US$114.53 on Tuesday and climbed further to above US$119. The moves followed a sharp drop toa four-month low – welcome relief after a record high of US$147.27, reached on 11 July. ]

BAA passenger traffic summary July 2008

July Change Jan–July Change Rolling 12 Change2008 on 2007 2008 on 2007 months on year

Heathrow 6,417,700 –0.0% 38,887,600 –0.3% 67,728,800 +1.3%Gatwick 3,718,000 ≠ –1.8% 20,104,900 +1.3% 35,425,800 +2.6%Stansted 2,315,600 –5.3% 13,098,700 –4.7% 23,106,700 –2.7%

London area total 12,451,300 –1.6% 72,091,200 –0.7% 126,261,400 +1.2%Southampton 192,200 –1.8% 1,149,200 +3.5% 2,005,600 +0.9%Glasgow 939,200 –3.2% 4,760,500 –4.5% 8,509,700 –3.3%Edinburgh 905,100 –1.3% 5,244,500 +1.6% 9,122,900 +3.5%Aberdeen 317,100 –2.6% 1,934,900 –1.7% 3,399,500 +1.2%

Scottish total 2,161,400 –2.3% 11,940,000 –1.4% 21,032,100 +0.3%UK total 14,804,900 –1.7% 85,180,400 –0.8% 149,299,100 +0.8%Naples 581,400 –2.6% 3,292,200 +3.9% 5,859,500 +8.1%

Source: BAA

THE MOODIE REPORT DATA ROOM – TRAVEL & TOURISM NEWS


The Moodie Report Thursday 21 August 2008

US (HAWAII). June was a bad month for inbound tourism to Hawaii, with total visitor arrivals by air down by -13.6% year-on-year to 580,862, according to the Department of Business, Economic Development and Tourism. Thekey nationality from a travel retail perspective, the Japanese, were down by -10%. However Japanese per-person per-dayspending increased by +8.4% to US$284.10, while their per-person per-trip expenditure rose by +5.4% to US$1,567.40.

Total air visitor expenditures decreased -13.5% or US$153.2 million from the same month last year to US$982.4 mil-lion. The decline was driven by the drop in arrivals allied to lower daily spending (down -2.1% to US$177 per person).Total visitor days for air and cruise visitors in June were off by -12.2% year-on-year. Total arrivals by air and cruisevisitors decreased -14.2%.

Among the top four visitor markets, air arrivals from Canada rose +18.6% but visitations from the US West (-16.5%),US East (-17%) and Japan (-10%) were down. “June’s visitor statistics reflect the loss of two Norwegian Cruise Lineships, increased fuel costs and a continued soft travel market especially from the US Mainland,” said State TourismLiaison Marsha Wienert.

For the first half of 2008 total arrivals by air and cruise declined -5.2% year-on-year to 3,551,035 visitors. Japanesearrivals were down by -5.7% in the period to 562,720.

Hawaii arrivals numbers and spending: June 2008 vs June 2007 and Jan–Jun 2008 vs Jan–Jun 2007

Visitor arrivals Average length of stay (days) Spending per person per trip (US$)Arrivals from June 2008 Change on year June 2008 Change on year June 2008 Change on year

US West 252,004 –16.5% 10.14 +3.7% $1,507.8 –0.7%US East 162,483 –17.0% 10.74 +4.3% $1,959.1 –0.2%Japan 91,213 –10.0% 5.52 –2.8% $1,567.4 +5.4%Canada 13,370 +18.6% 11.00 –14.7% $1,650.0 –29.9%Others 61,792 –0.7% 9.88 +2.2% $1,927.3 +3.8%

Total by air 580,862 –13.6% 9.58 +2.4% $1,691.3 +0.2%Total by ship 0 –100.0% 0.00 –100.0% n/a n/a

Total 580,862 –14.2% 9.58 +2.3% n/a n/a

Source: Hawaii Department of Business Economic Development & Tourism; The Moodie Report

Arrivals from Jan–Jun 2008 Change on year Jan–Jun 2008 Change on year Jan–Jun 2008 Change on year

US West 1,437,163 –7.9% 9.57 +1.9% $1,460.5 –0.5%US East 940,067 –7.1% 10.47 +1.4% $1,913.9 –1.7%Japan 562,720 –5.7% 5.60 +0.5% $1,613.1 +6.6%Canada 197,690 +8.0% 12.98 –0.9% $2,031.4 +6.3%Others 361,802 +9.4% 9.68 –5.5% $1,978.2 +6.1%

Total by Air 3,499,442 –5.0% 9.38 +1.0% $1,692.6 +1.7%Total by Ship 51,593 –18.9% 9.44 +8.8% n/a n/a

Total 3,551,035 –5.2% 9.38 +1.1% n/a n/a

THE MOODIE REPORT DATA ROOM – RETAIL & COMMERCIAL SALES RESULTS

BAHRAIN. Bahrain Duty Free Shops posted consolidated half-year sales results (January to June) of BD18 million(US$48 million), a surge of +19% compared to the same period in 2007. Consolidated gross profits rose +25% whileoperating profit before royalties increased by +38%. Passenger numbers at Bahrain International Airport increased by+28% year-on-year in the period. Within this, 60% of the increase came from Gulf Air transfer passengers and a signif-icant share from the new Bahrain-based carrier Bahrain Air.

Bahrain Duty Free General Manager Steve O’Connor said: “This has been an exceptional six-month period with allelements of our business – airport duty free shops, sea ports and inflight duty free – performing exceptionally well. AllKPIs (key performance indicators) have surpassed 2007 numbers and the ongoing Departures shop development hasadded real value to the business.”

BELGIUM. Retail revenues at Brussels Airport Company climbed by +10.7% in the first half of 2008 (to 30 June),hitting €22.4 million. The second quarter saw +10.7% growth in retail over the same period last year, with revenues



reaching €12 million. The strong retailand overall commercial performance atBrussels helped grow overall first-halfrevenues by +7.4% to €185.5 million.EBITDA rose by +12.8% to €104.5million.

The performance of retail, said ownerMacquarie Airports, reflected “a goodsales performance in retail shops and aparticularly strong performance in food& beverage due to the introduction ofnew catering concepts”.

Car parking revenues were +14.6%above H1 2007 (to €12.9 million) asaverage transaction values rose. Proper-ty and real estate income rose +4.8% inthe half to €17.3 million. In addition,said the group, advertising revenue was“very strong, following the successfulimplementation of a number of newinitiatives by JC Decaux, which tookover the advertising contract at BrusselsAirport in 1 January 2008”. The rev-enue performance was underpinned bytraffic growth of +10.5%.

DENMARK. Copenhagen Airportcommercial revenues climbed by+10.7% in the first half of 2008 com-pared to the same period last year, hit-ting DKK635.2 million (US$132.6million). Commercial revenue in Q2rose by +14.6% to DKK340.2 million(US$71 million).

Within this, concession revenue rose by+11.7% in the half to DKK381.9 million (US$79.7 million). Shopping Centre revenue rose by +17.1% to DKK250.3million (US$52.25 million) with car parking revenue climbing +1.5% to DKK104.5 million (US$21.8 million). EBIT-DA within the commercial division dipped -15.7% to DKK396.7 million (US$82.8 million) in the half.

Copenhagen Airport said: “Concession revenue rose +11.7% due to investment in the new duty free shop, which hasincreased sales per passenger as a result of the improved convenience and product range. New shops in Q4 and H12008 also contributed to the growth. The six months results in both 2007 and 2008 were affected by the retail disrup-tion related to major refurbishments, but the impact in 2008 was smaller than in 2007. Q1 2007 benefited from higherminimum guaranteed charges per passenger in the duty free shop until the end of February [when The Nuance Grouprather than Gebr Heinemann operated the concession –Ed].”

FRANCE. Aéroports de Paris (AdP) has announced a strong first-half revenue increase of +12.3% to €1,214 mil-lion, far outpacing passenger traffic growth (up +2.8%). AdP attributed the positive results to a buoyant momentum inairport services (+9.8%), as well as a strong retail performance (+11.6%) and growth in real estate revenues (+7.1%).

Revenues from airport services were up +9.8% to €957.4 million, boosted mainly by fees, commercial activities and theleasing of space in new facilities. Commercial revenue (shops, bars and restaurants, car rentals and advertising)increased +11.6% to €119.3 million. Shops in restricted areas reported a +14.1% increase in revenues, buoyed by inter-national passenger traffic growth (+5.4%) and enhanced performances of retail areas.

Several factors contributed to this strong performance, including the new La Galerie Parisienne retail offer, followed by

Selected traffic numbers reported in the past three weeks

Country Airline/airport Jun ’08 vs Jun ’07 (%)

Source: ©The Moodie Report

Belgium Brussels Airlines -6.6 (total pax)Canada Ottawa International Airport +12.9 (international)Canada Vancouver International Airport +2.6 (international)Cyprus Cyprus Airways +7.7 (total pax)Germany Hamburg Airport +0.2 (international)Greece Athens E. Venizelos Int. Airport +3.5 (international)Italy Alitalia -21.7 (total pax)Japan JAL Group -8.5 (international)Macau Macau International Airport -8.0 (total pax)Malaysia Malaysia Airlines -12.2 (international)Mexico Cancún Airport +8.3 (international)Netherlands Amsterdam Airport Schiphol +3.6 (total pax)Oman Oman Air +56.0 (total pax)Portugal TAP Air Portugal +22.3 (total pax)Romania Tarom +8.1 (total pax)Singapore Changi Airport +2.9 (total pax)Thailand Thai Airways International +4.3 (total pax)Tunisia Monastir Habib Bourguiba Int. Apt. +7.2 (total pax)Turkey Turkish Airlines +14.5 (total pax)UAE Air Arabia +39.6 (total pax)UAE Sharjah International Airport +28.8 (total pax)UK Belfast International Airport -17.5 (total pax)UK British Midland Airways +6.7 (total pax)UK Liverpool John Lennon Airport -4.1 (total pax)UK Virgin Atlantic Airways +3.3 (total pax)US Atlanta Hartsfield-Jackson Int. Airport+2.8 (international)US Charlotte-Douglas Int. Airport +7.3 (international)US Dallas/Fort Worth Airport -3.6 (international)US Denver International Airport +1.3 (international)US Ft Lauderdale-Hollywood Int. Airport +12.1 (international)US Los Angeles International Airport -0.8 (international)US Orlando International Airport +9.3 (international)US Washington Dulles Int. Airport +6.0 (international)



the partial reconfiguration of international passenger flows at Paris-Orly Sud and the renovation of three quarters ofthe Paris-Charles de Gaulle Terminal 1 at the end of March. Bar and restaurant revenues increased +10.1% in the firsthalf of 2008.

Car park and access revenue increased +4.2% (like-for-like +7.4%) to €77.5 million. Rental revenue (from leasing spacein air terminals) rose +18.1% to €44.9 million, buoyed by the full impact over the six-month period of leasing newretail areas in the Paris-CDG terminals, notably La Galerie Parisienne, as well as adjacent land and buildings. Otheractivities (subsidiaries and joint ventures) continued to grow rapidly, up +26.7% to €185.7 million. In particular, AdP’sjoint venture with Aelia, Société de Distribution Aéroportuaire (SDA) reported revenue growth of +17.1% to €87.2million.

GERMANY. Retail revenue at Frankfurt Airport owner Fraport Group climbed by +4.4% to €72.9 million in thefirst six months of 2008 as the company posted a solid set of six-month results. Within the retail segment, shoppingactivity revenues grew from €40.8 million in H1 2007 to €41.2 million this year, advertising from €12.1 million to€12.3 million and other services from €16.9 million to €19.4 million. Retail revenue per passenger rose by +2.1% to€2.78 in the half.

Revenue across the wider Retail & Properties division fell -15.9% to €215.6 million. This was exclusively because ofnon-recurring income of €57.6 million from the company’s Airrail lease at Frankfurt Airport. Adjusted for this, Retail& Properties revenue rose by +8.5% in the half.

From January to June Fraport recorded 26,262,754 passengers at Frankfurt Airport, +2.2% more than in the first sixmonths of 2007. At Fraport’s majority-owned airports (Frankfurt, Frankfurt-Hahn, Antalya, Lima, Burgas and Varna),the number of passengers climbed by +3.7% to 36,624,192 in the first half of 2008.

INTERNATIONAL. Macquarie Air-ports (MAp) has reported a net result attribut-able to shareholders of A$274.3 million(US$238.9 million) for H1 2008. Across its coreportfolio revenue grew by +7.6% in the half(compared to H1 2007), and EBITDA grew by+9.6% against passenger growth of +5.8%.

Critically, the company said that slowing pas-senger growth had not produced any “materialevidence of pressure on passenger retailspend”. It emphasised that 80% of its retailrevenue is earned through minimum guaran-teed rents, which it said would protect it fromany future “downside” in spending.

Retail revenue in the half rose by +11.3% atSydney Airport, +17.1% at Copenhagen,+10.7% at Brussels and +8.1% at Bristol. Totalretail revenue in the half was A$186.3 million(US$162 million).

MAp said its commercial projects were becom-ing “increasingly vital” to its business. Amongthose to be delivered in the second half are amulti-storey car park at Sydney Airport’s Inter-national Terminal, and redeveloped retail areasat Copenhagen. MAP said it expected toachieve “solid” results for the full year andmaintained a long-term growth forecast of +4%to +5% for passenger traffic, despite the cur-rent “challenging” environment. [See www.TheMoodieReport.com for Macquarie’s Julypassenger traffic figures, announced today].

Maquarie Airports retail revenues growth H1 2008

Source: Macquarie Airports

Maquarie Airports retail revenues H1 2008

*Minimum guaranteed rents Source: Macquarie Airports

Revenuesearned in

form ofMGRs*

Total revenues

Sydney Brussels Copenhagen Bristol



In other news, MAp has taken a 5.6% stake in Mexican airports group Grupo Aeroportuario del Sureste de Mexico(ASUR), which operates nine airports in the country’s southeast under a 50-year concession.

MAp Chief Executive Ms Kerrie Mather said: “The nine airports have total annual traffic of over 17 million passengers,with the largest airport being the significant tourist destination of Cancún… We expect the returns from this invest-ment to be well above those offered by [other] current and proposed major airport privatisations.”

MEXICO. Grupo Aeroportuario del Pacífico (GAP) has reported revenues of Ps1,833.0 million (US$185.3 million)in the first half of 2008, up +7% on H1 2007. The increase was driven in part by a +12.5% surge in non-aeronauticalrevenues to Ps367.5 million (US$37.1 million). Revenues from vehicle parking services, leasing of commercial spaces,leasing of car rental space, leasing of food & beverage spaces and leasing of commercial spaces and advertising were themajor drivers.

Passenger numbers in the half rose by +3.8% to 11.9 million. International passenger numbers grew +4.7% to 4.1 mil-lion though they fell -3.5% in June to 603,000. Non-aeronautical income per passenger was Ps30.7 (US$3.10), up by+8.4% on H1 2007. GAP’s major airports for international traffic are Guadalajara, Los Cabos and Puerto Vallarta.

In the second quarter, a +6.7% rise in non-aeronautical revenues to Ps183.7 million (US$18.57 million) contributed toa +1% rise in total revenues to Ps882.6 million (US$89.2 million). Non-aeronautical revenues per passenger grew by+10.7% in the quarter to Ps32.50 (US$3.28).

Despite the growth figures, the outlook for the rest of the year is uncertain. Airlines using the 12 Pacific region airportsoperated by GAP have been cutting capacity to manage soaring aviation fuel costs.

MIDDLE EAST. Aer Rianta International–Middle East (ARI-ME) is on target to hit US$830 million in sales in2008, a new company record, according to Managing Director John Sutcliffe. Sales were around US$750 million in 2007.

Sutcliffe told The Moodie Report: “Business has been excellent so far in 2008. We are now seeing fantastic sales atBeirut Duty Free for example, following a seven-day closure earlier in the year during the conflict there. It has been anamazing comeback.”

He hailed the continuing rise of Qatar Duty Free, while at the company’s regional base in Bahrain, Bahrain Duty Freeis trading around +18% ahead of the same period last year, said Sutcliffe. The company’s business in Egypt, where itoperates a management consultancy with Egyptair Duty Free Shops, will soon be worth US$200 million a year, saidSutcliffe. “We have Cairo Terminal 3 coming on stream later in the year, plus Sharm el Sheikh and Hurghada are per-forming well, and the average spends are really improving there, plus we have a more efficient back office system that ishelping us.”

In Muscat, the loss of Gulf Air traffic (following the withdrawal of Oman’s government from a stake in the carrier) hasbeen replaced by strong growth from Oman Air. Sutcliffe said: “Oman Air traffic is up by +50% year-on-year, but theimportant thing is the quality of passenger. Previously with Gulf Air we had a lot of low-spend transit traffic, now it’shigh-quality passengers that want to spend more. Although overall traffic has not increased, sales are well up as a result.”

In Cyprus – where ARI-ME has a stake in the Hermes consortium which operates Larnaca and Paphos airports, as wellas retail and food & beverage concessions – the company is planning for the opening of Paphos Airport’s new terminalon 8 November. “At Paphos we’ll see a transformation in terms of retail and food & beverage,” said Sutcliffe. “It helpsthat we are there as partners in both businesses [with CTC Airports for retail, and with SSP for food & beverage –Ed].The work on the 2,000sq m of commercial space is well advanced and that project will open on time.

“In Larnaca we’ve had some great news in that the consortium is to proceed with an extension of the planned newterminal, which will add 2,400sq m of space. Some of that will be offices and seating, but there will be commercialspace too. That will take the overall commercial area to 7,000sq m, of which 5,000sq m will be duty free and 2,000sq mfood & beverage.” See www.TheMoodieReport.com for full report.

NETHERLANDS. Schiphol Group today reported a marginal rise in revenue for the first half of 2008, but bothEBITDA and the final net result for the half fell sharply. This was partially offset by another strong performance fromthe Consumers business division, which includes retail and food & beverage activities.

The group’s net result fell by -32.9% to €95.8 million compared to the same period last year, while revenue grew by



just +1.7% to €549.5 million. EBITDA fell by -16.3% to €221.9 million. The Consumers business area, whichaccounted for 50% of overall operating profits, saw its operating result grow by €2.1 million, because of increasedrevenue from the ‘See Buy Fly’ shops and “well-frequented” new catering outlets.

Airport charges fell by -2.6% and security costs increased by +4.5% to €105.5 million, dragging down the overallresult. The number of passengers using Amsterdam Airport Schiphol, Rotterdam Airport and Eindhoven Airport roseby +2.1% to 24.1 million in the half. Of these, 22.8 million travelled through Amsterdam Airport Schiphol (+2.0%).

NEW ZEALAND. Non-aeronautical revenues delivereda stand-out performance as Auckland International AirportLimited today posted a +13.7% increase in operating EBIT-DA to NZ$275.8 million (US$197.4 million) for the yearended 30 June 2008 (+7.3% after adjusting for one-off items).

Total revenue rose by +9.0% to NZ$351.0 million (US$250.9million). This was driven by a +12.8% rise in non-aeronauti-cal revenues (including retail, car parking and property) toNZ$191.1 million (US$136.8 million). In contrast, aeronauti-cal revenues increased by just +4.9% to NZ$160 million(NZ$114.6 million).

Total passenger movements rose by +6.9% to 13,202,772with international passenger movements (including transitsand transfers) edging ahead by just +2.4% to 7,462,683.Auckland Airport now earns nearly 55% of its revenues fromnon-aeronautical businesses. Retail income rose by +10.3% toNZ$103.4 million (US$74 million), with car park revenueclimbing by an impressive +13.0% to NZ$29.3 million(US$21 million).

Retail income per international passenger (including transits and transfers) was NZ$13.85 (US$9.91) in the 2008 year,compared with NZ$12.87 in the previous year. Auckland Airport’s 50% share of its earnings from HMSC-AIAL Lim-ited, its food & beverage joint-venture with HMSHost, generated a +16.3% increase in revenues to NZ$1.05 million(US$0.76 million).

The strong commercial results represent a solid testimony to the work of General Manager, Retail Nick Forbes, who isleaving in November to become Global Operations Director at Aer Rianta International in Ireland. For the full reportsee www.TheMoodieReport.com

SWITZERLAND/INTERNATIONAL. The Nuance Group recorded sales of CHF826.6 million(US$764.1 million) for the first six months of 2008. On a like-for-like basis – when restated for exchange rate impactsand operations closed in the first half of 2007 in Copenhagen and Vancouver – that represents a year-on-year gain of+8.8%. EBITDA, on a like-for-like basis, rose +9.1%. No other figures were released.

Nuance said that strong sales growth compared to last year was recorded in Singapore, Hong Kong, across Europeanoperations and in North America. It commented: “Singapore, in particular, showed good growth following the openingof Terminal 3 at Changi Airport with perfume and cosmetics sales +14% above last year, while Hong Kong airport salesgrew by +15% compared to last year, driven by good passenger volumes and spend.”

The growth in European operations mainly came from strong performances in Switzerland, Sweden and Turkey, wherepassenger spend levels were well above last year, Nuance said. The Nuance Group President & CEO Roberto Grazianisaid: “I am proud of what we have achieved in the first half of the year: we are above our expectations and last year’sresults despite a more challenging economic and industry environment.

“We are well aware of the challenges facing us for the second half of the year coming from the general economic slow-down, overall passenger volumes and weaknesses in certain key currencies.

“We therefore have to carefully control our cost base, continue to find innovative solutions with our vendor and land-lord partners, and to further drive passenger spend rates to deliver the objectives that we have set ourselves for 2008.”

AIAL revenue by source 2007/08

Source: Auckland International Airport Limited

Utilities and general4.7%

Terminal services charge

6.5%

Associatecompany

0.3%

Retail income29.5%

Rental income11.5%

Airfield income20.0%

Passenger services charge 19.1%

Car park income8.3%

Interest income0.2%



BAT INTERNATIONAL LTD SEEKSCONSUMER INSIGHTS MANAGERAs a member of the Consumer Insights team, based in Zug, Switzerland, youwill be required to support the Global Customer Engagement Unit’s visionand strategy including Global Travel Retail in key International airports

Main responsibilities:l Ensure a comprehensive, detailed understanding of Consumers, Shoppers & Customers l Define information requirements and formulate needs to generate insights resulting in actionable business

recommendations l Recommend new business opportunities by monitoring market changes, emerging trends and new developments l Promote knowledge sharing of relevant consumer insights to key stakeholdersl Effectively manage external suppliers to ensure the highest level of quality and cost efficiency

Your profile:l Degree qualified with 2–3 years Insights experience within FMCG sector and/or in the Travel Retail environmentl Fluent English: written & oral. Additional languages an advantagel Excellent communication and influencing skillsl Experience of interpreting research data and presenting conclusions to managementl Highly experienced in the design of consumer and trade research projects

If you are interested in this role, please send your application (CV & letter) to [email protected] quoting ‘The Moodie Report’

SWITZERLAND. Unique (Zürich Airport) has posted profits of CHF79.8 million (US$72.8 million) in the firsthalf of 2008, an increase of +73.1%, aided by a strong performance from commercial activities in the period. Non-aviation revenues grew by +11.3% to CHF164.5 million (US$150.1 million). The average turnover per departing pas-senger rose +4% in the same period to CHF44.10 (US$40.25).Within this, commercial revenues (retail, food & bever-age) rose by +12.8%.

In its interim statement, the company said: “The range of commercial facilities was expanded again in the periodunder review. In the public area, 17 new retail outlets offering fashion goods, consumer electronics and sporting/leisure-time articles were opened on almost 5,000sq m of floor space. The Travel Market was also revamped, and two additionswere made to the range of cafés, restaurants and bars. And in the airside area (i.e. the zone reserved solely for passen-gers), a number of attractive new retail outlets were also opened, offering brands such as Gucci, Montblanc, PorscheDesign and Fossil.

“In addition, many of the existing retail and food & beverage outlets were given a facelift, and opening hours wereextended to 9pm for the convenience of consumers.” Passenger figures for the period rose by +9.3% to 10.6 million.The company said it expected full-year growth of between +7% and +7.5%, with passenger numbers of 22.2 millionin 2008.

THAILAND. Airports of Thailand (AoT) has posted an +11.1% increase in Q3 revenues (April to June) toTHB5.1 billion (US$151.3 million). This included growth of +7.1% in non-aeronautical revenues, which hit THB1.5billion (US$44.5 million).

The company said its figures included a one-off THB2.7 billion (US$80.1 million) payment from King Power Interna-tional Group (Thailand) in June, following the recent protracted court case between the two companies over the retail-er’s Bangkok Suvarnabhumi contracts. This includes deferred minimum guarantees, plus related charges that were gen-erated during the dispute, but were not booked by AoT at the time.

As a result AoT’s net profit jumped eleven-fold on the same period last year to reach THB3.61 billion (US$107.1 million).The non-aeronautical business included concession fees in the quarter of THB473.56 million (US$14 million), up +22.8%.



DENMARK. Copenhagen Airport has unveiled a fresh new look for its shopping ‘high street’, with more naturallight and better seating plus the addition of new retail and food & beverage brands. More shops and restaurants are set toopen in the coming months. The project to revamp the passenger High Street, which runs through Terminals 2 and 3,began in autumn 2007. It involved remodelling 5,000sq m of space, of which 2,300sq m is new.

Commercial Director Henrik Busch said: “The extensive remodelling project means that we will have an up-to-datetransit area with new passenger facilities and an attractive shopping area. The new passenger high street is very attrac-tive, airy and friendly with its high ceilings, inflow of daylight and a number of interesting new shops, by which wemeet a number of our passengers’ most prominent demands.

“Our passenger surveys show, among other things, that passengers want even more shopping options at Copenhagen Air-port. To offer a broader range and better passenger facilities, we are now opening an array of new shops and restaurants.”

The first shops have already opened, and the rest will be opening from now until October.” See www.TheMoodieReport.com for full details.

GERMANY. Stuttgart Airport’s commercial development continued last month with the opening of a new watchshop, plus a post office. These follow the recent openings of two sunglasses shops from Bochmann & Pfendt (Terminal 3Departures) as well as two children’s zones, one each in T3 and T4.

The watch shop, named Time For You, lies in the public area of T1 on Level 4. Stuttgart Airport said: “The shop offersa wide assortment of brands from such trend-setters as D&G, M&M, Guess, Ingersoll and Elysee. And anyone lookingfor something very special will find it in the Messerschmitt Flight Watch. For younger passengers there are colourfulwatches with fun designs.” Stuttgart Airport handled 4.71 million passengers in the first half of 2008, a marginal fall of-1.4% compared to the same period last year.

INDIA. Flemingo Duty Free Shop has accelerated its expansion in India with the opening of two new stores at bothCalicut International Airport (28 July) and (later this month) Mangalore International Airport. In Calicut Flemingo wasawarded the retail concessions for all categories of duty free items at the Main International Terminal building. TheArrivals store is 138.5sq m and the Departures outlet is 47.5sq m. At Mangalore International Airport Flemingo willoperate a 10.20sq m Arrivals store and a 8sq m Departures store.

INDIA. GMR Hyderabad International Airport (GHIAL) has unveiled a major initiative themed ‘Spirit of India’ toattract retailers from across India to the new Rajiv Gandhi International Airport at Shamshabad, just outside Hyder-abad. The concept focuses on ethnic and contemporary products that are uniquely Indian. They include handicrafts(tribal and regional), garments (ethnic and contemporary), jewellery (pearls, gems, gold, lac bangles), spiritual books,music and videos. For full story and pictures see www.TheMoodieReport.com

NEW ZEALAND. Auckland International Airport Limited (AIAL) has bowed to intense Commerce Commissionpressure and decided not to proceed with its previously announced plans to move from two duty free retailers (DFSGroup and Regency/The Nuance Group) to one (DFS).

In late March the Commerce Commission declined clearance of DFS Group’s proposed acquisition of The NuanceGroup’s New Zealand interests. In rejecting that acquisition on anti-competitive grounds, the Commission also questionedAIAL’s decision last year to appoint a single duty free retailer (DFS) instead of the traditional DFS/Regency duopoly.

It was that decision which prompted the proposed Nuance divestment to DFS. [Originally, DFS, as the successful bid-der for the new sole duty free concession, was granted a 1,200sq m retail space in the new Arrivals area. Nuance, as theunsuccessful bidder, was granted a 400sq m retail space – until its existing licence agreement expired on 3 August 2009,at which point all space would revert to DFS. However the subsequent discussions between DFS and Nuance, and thenAIAL, led to DFS taking dominant control of the space].

The Commission’s resultant investigation has clearly driven AIAL into reasoning that it is locked into an argument itcannot (or is unlikely to) win if it defends its earlier decision. AIAL said: “The airport has decided to retain two dutyfree operators rather than face the prospect of an extended dispute with the Commerce Commission which has beeninvestigating the decision to move from two duty free operators.

THE MOODIE REPORT RETAILER & CONCESSIONAIRE NEWS



AFRICA. Flemingo International, already well established across the continent, has won three new airport duty freelocations in Africa. The company has been awarded retail concessions for all categories of duty free items in the maininternational terminal building at Uganda’s Entebbe International Airport. Flemingo will operate a 46.94sq m Arrivalsstore and a 80sq m Departures shop.

In Ghana the retailer has been awarded a concession to operate a duty free Arrivals shop covering all main categories atKotoka International Airport in Accra, the country’s main gateway. The store will cover 22sq m.

The company scored another gain in Liberia, where it has been awarded a contract to operate two Departures duty freestores (all categories) in the passenger terminal at Roberts International Airport, which serves the capital city of Mon-rovia. The stores measure 694.70sq ft in total. Flemingo will now operate in ten African countries, as well as its bur-geoning retail network in India, plus operations in Nepal and Sri Lanka.

INDIA. Arguably the greatest retail and food & beverage opportunity in Indian airport history will be offered to themarket in coming weeks at Delhi Indira Gandhi International Airport. A raft of commercial tenders related to the air-port’s new Terminal 3, due to open in March 2010, is currently being finalised by Chief Commercial Officer GavinMcKechnie and his team at the GMR-operated airport. This will be preceded by a number of tenders for the newdomestic terminal, 1D.

Speaking to The Moodie Report in Delhi this month, former BAA and World Duty Free executive McKechnie said:“Our objective is to get all the [T3] RFPs out by the end of October and the majority of them closed by the end ofDecember because we want people to be on site by around September next year [preparing for the opening].”

UK company The Design Solution is working with GMR on developing the commercial space at the Delhi gateway.T3 will offer some 30,000sq ft of duty free retail space. The duty free contract is likely to run for seven years (thoughthe exact tenure is still being finalised) and will be offered to a single retailer in an open tender, McKechnie said. Addi-tionally a host of specialist stores, all involving separate contracts, will be offered. “I want as wide a range of people tocome in and bid as possible,” said McKechnie. “There will be a mixture of international and local brands.”

He said that GMR expected major interest from most major international travel retailers as well as strong local inter-est in the specialist stores from quality Indian retailers. “All the big players know what is happening and they have allmade contact. Everyone wants to come into India and they are all awaiting the opportunities. This will be the biggest

“The airport has provided a formal undertaking to retain two operators until June 2015. In response, the CommerceCommission has notified the Airport that, although it considers that the Airport’s conduct risked breaching the Com-merce Act, the Commission will cease its investigation.”

The company noted: “A number of options are being considered. At this time it is not possible to determine the costsor the impact on the company’s retail income, if any, associated with this re-configuration.” For the full report seewww.TheMoodieReport.com

SWITZERLAND. Geneva International Airport (AIG) has selected a newly created partnership between TheNuance Group and French company CDG Participations to operate 540sq m of fashion retailing space, following anopen tender. From April 2009 the partners will jointly operate a 420sq m Fashion & Accessories multi-brand storeairside and from November 2009 a 120sq m mono-brand concept, also airside. AIG Commercial and Finance DirectorPierre Germain said: “This new partnership is likely to combine innovation and efficiency based on a strong experiencein airport fashion retail of both operators. It perfectly meets our commercial and financial expectations.”

TURKEY. Urart, The Nuance Group’s Turkish joint venture, today announced a new destination merchandise andconfectionery concept at Antalya International Airport Terminal 1. ‘The box of Delights’ features a variety of typicalTurkish sweets presented in a design reminiscent of the traditional Ottoman style, Nuance said. A free-standing displayarea presents the merchandise as if in an exhibition, granting maximum visibility. The design of the stand, while mini-malist, is reminiscent of the traditional Ottoman style with a 19th century hat motif adorning the back panel.

Cengiz Iman, Managing Director of the Nuance-Net Joint Venture (Turkey), said: “We are forever on the look-out fornew, original concepts that will lend a special local flavour to the retail operations at Antalya International Airport.”

THE MOODIE REPORT TENDER & CONTRACT NEWS



opportunity in India over this period.” [Also see Food & Beverage news]. New concepts will include CTN and conven-ience stores (both firsts for India), and a range of innovative F&B concepts. Advertising and foreign exchange concessionswill be among the other commercial opportunities. For the full story see www.TheMoodieReport.com – ‘Tender news’.

INDIA. Airports Authority of India failed to attract any bidders for the five airport duty free contracts it offered inan open tender which closed on 11 August. As a result it has extended the deadline until 25 September.

As reported, the state organisation’s tender covered five Indian regional airports: Trivandrum, Jaipur, Lucknow, Srinagarand Coimbatore.

SINGAPORE. The Civil Aviation Authority of Singapore (CAAS) has called two important retail tenders at Sin-gapore Changi Airport Terminals 1 and 2. In T1 the airport is seeking a retailer for a fashionwear concession in Depar-ture/Transit Lounge Central. Bids are due by 25 September. The contract runs for three years from 11 June 2009, withan option to renew for two further years at the end of the term.

In T2 the CAAS has called a tender for a speciality/brand name shop in Departure/Transit Lounge North. Bids are dueon 10 September and the three-year contract begins on 8 January. There is no option for renewal.

THE MOODIE REPORT FOOD & BEVERAGE AND OTHER COMMERCIAL REVENUES

BELGIUM. Starbucks Coffee Company has opened its first location in Belgium. It is in the landside Departureslounge at Brussels Airport. Autogrill Belux, Starbucks’ licensed partner, is responsible for the day-to-day management ofthis location. A second Starbucks store will open later in the year in the newly renovated shopping area on the A-Pier.

INDIA. The food & beverage tender at Delhi Indira Gandhi International Airport’s new Terminal 3, due to openin March 2010, will include a unique themed bar, conceived by London-based The Design Solution. “That will bethe signature piece,” said Chief Commercial Officer Gavin McKechnie. “It will be the bar of Asia – the place to be.”Approximately 8,000sq ft of food & beverage space will be offered – mostly located on the mezzanine level at T3 withthe retail offer below.

“Food & beverage will be a mixture of continental, Asian and Indian,” said McKechnie. “There will be casual dining,snacks, coffee and bars. We are trying to move away from the food court concept.”

THE MOODIE REPORT GENERAL NEWS

EU/CROATIA. Passengers travelling from Croatia’s six international airports are no longer required to forfeittheir duty-free liquid purchases at EU, Norway, Iceland or Swiss airport security checkpoints when transferring toanother flight. After Singapore, Croatia became the second country to be approved under Regulation (EC) 915/2007,under which the European Commission allows passengers from selected non-EU country airports to travel freely withtheir duty free liquid purchases when transferring within the EU.

UK. In a dramatic development for the UK aviation sector, the Competition Commission this week proposed – subjectto consultation – the sale of three BAA airports, two in London and one in Scotland. The Commission said that it hadprovisionally found that there are competition problems at each of BAA’s seven UK airports (Heathrow, Gatwick, Stan-sted and Southampton in England, and Edinburgh, Glasgow and Aberdeen in Scotland) with adverse consequences forpassengers and airlines.

A principal cause is their common ownership by BAA, the Commission said. It noted: “We consider that divestiture willbe an effective remedy for this feature as it replaces common ownership with separate ownership where each separateowner has incentives to compete to gain the business of customers.”

The Commission has also published its proposed remedies, on which it will now consult. As a result, if these are imple-mented, it will order BAA to sell two of its three London airports, and also either Edinburgh or Glasgow airport.

World Duty Free – formerly owned by BAA and now by Autogrill – is the duty free retailer at all seven BAA airports. Itnow faces the very likely prospect of having to deal with up to three new landlords. For full report and BAA’s responseto the Competition Commission see www.TheMoodieReport.com



AMERICAS. Stephen Corrigan has been appointed as the new Senior Vice President of Sales at Pernod RicardAmericas Travel Retail. In his expanded role he will be responsible for North America and Brazil Duty Free, as well asthe Caribbean Markets.

IRELAND. CTC-ARI Airports General Manager Gerry Crawford is to leave his Cyprus post in November tobecome Head of Retail at Dublin Airport Authority. In his new role he will report to DAA’s new Director of Retail PaulNeeson. As previously reported, Neeson took on the role this month following the retirement of Frank O’Connell.

Crawford has been one of the most respected and influential senior executives of recent years at Aer Rianta International–Middle East (ARI-ME). He currently leads the company’s involvement as part of the Hermes consortium at Larnacaand Paphos airports. In that role he has overseen the commercial development of new terminals at the two Cyprusairports, and introduced key innovations such as the Uisge Beatha whisky concept.

ARI-ME is seeking a successor for Crawford in Cyprus. “This is an opportunity for a high-calibre person in what is avital role for the company,” said ARI-ME Managing Director John Sutcliffe Sutcliffe.

IRELAND/NEW ZEALAND. Aer Rianta International has appointed Nicholas (Nick) Forbes to the key newgroup role of Group Retail Operations Director, effective from November. Forbes, an Australian, is currently GeneralManager, Retail, for Auckland International Airport Limited (AIAL). Before that he worked for Australia Pacific AirportsCorporation (Melbourne) and Brisbane Airport. He is a Board Member of the Asia Pacific Travel Retail Association.

In his new role, based in Shannon, Ireland, Forbes will report directly to Aer Rianta International (ARI) Director Gen-eral Eamon Foley and will have full responsibility for all Aer Rianta International retail operations in Europe, the Mid-dle East and North America (including Canada). Foley said: “This is a senior management position… which will play akey role in the development of the strategic vision and growth of Aer Rianta International.” The new role succeeds BillMaxwell’s long-time function as Regional General Manager Retail – CIS and North America, who, Foley said, “hassignalled his intention not to continue in his current role at this stage of his career”. Foley warmly saluted Maxwell, oneof the key influences in the Aer Rianta International success story of recent years, commenting: “Bill has given sterlingservice to the development of the business in the CIS and has built it up to become the company’s flagship region. Weare delighted that Bill will continue to work with Aer Rianta International and will play a key role within the companyto the ongoing growth and development of the business.” AIAL is seeking to recruit a new General Manager – Retail.

RUSSIA/UKRAINE. Aer Rianta International (ARI) has named Garrett Coogan as General Manager for its newMoscow Sheremetyevo Terminal 3 operation. Coogan currently heads the company’s Kievrianta subsidiary, which oper-ates the duty free business at Kiev Boryspil Airport in Ukraine. Coogan takes up his new role in early September, and willbe replaced at Kievrianta by Seamus Holmes, who has been Finance Manager at the operation since November 1999.

ARI said in a statement: “Garrett has been General Manager of Kievrianta Duty Free since 2001 and together with histeam has established Kievrianta Duty Free as a leading key business for Aer Rianta International. Garrett will bringstrong managerial and retailing experience and skills to this key position in SVO3 and will manage a team in deliveringstandards of excellence throughout all areas.”

UAE. DFS Group has appointed Eugene Barry as Vice President, Retail Operations Middle East. Previously DeputyChief Operating Officer for Dufry Middle East Region in Sharjah, Barry is one of the most well-regarded travel retailexecutives in the Middle East. In his new role the Irishman will head the DFS team in its recently opened Abu DhabiInternational Airport duty free operation. Barry was formerly responsible for the Middle East and the Indian subconti-nent at Dufry. Besides a General Manager role in Sharjah he also developed and managed the inflight duty free pro-gramme with Air Arabia. He is also Treasurer of the Middle East Duty Free Association.

US. BAA Cleveland, the newly appointed developer of retail and food & beverage concessions at Cleveland HopkinsInternational Airport (CLE), has named Tina LaForte as Vice President. In this role she will oversee the concessionsprogramme and the eventual opening of BAA’s new Airmall at CLE.

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Martin Moodie, Founder and Publisher

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