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Indian Sub.Cont. / Airports
Karachi duty free tender closes tomorrow
By Doug Newhouse, 9 February 2010
The Civil Aviation Authority (CAA) of Pakistan will close its tender for the operation of a five-year contract at the Jinnah Terminal at Karachi International Airport tomorrow, when bidders will be revealed at 12.30 in the conference room at the airport terminal.
The CAA has placed a reserve price/fee on the concession of $422,760 a year, plus four 'cumulative annual enhancement fees' in years two to five of 12.5%, 15%, 17.5% and 20%.
The last time around, the concession was awarded to EDF Services (Pvt) Ltd in 2004, a subsidiary of the EDF Group (Eastern Duty Free) covering three departure and two arrivals shops, with the main departure shop covering an area of around 450sq m.
The prime competition for duty free shops at Karachi Airport comprises other 'foreign' airports through which Pakistani travellers transit on their travels to and from Pakistan - and primarily Dubai International Airport, where many Pakistanis transit en-route to and from Europe and the US.
According to the CAA's annual report for 2008 [the last available to date-Ed], non-aeronautical revenue to the CAA in Pakistan from all of its airports accounted for around 25% of total revenues in the year.
Comment: It will be interesting to see whether the CAA will receive many offers for this tender considering the ever-growing security concerns and killings in Karachi that have deterred foreign investors in other business sectors from investing in the location. Only this month, Karachi endured yet more violence when 33 people were killed and 165 were injured by bombings in the city.
By Doug Newhouse, 9 February 2010
The Civil Aviation Authority (CAA) of Pakistan will close its tender for the operation of a five-year contract at the Jinnah Terminal at Karachi International Airport tomorrow, when bidders will be revealed at 12.30 in the conference room at the airport terminal.
The CAA has placed a reserve price/fee on the concession of $422,760 a year, plus four 'cumulative annual enhancement fees' in years two to five of 12.5%, 15%, 17.5% and 20%.
The last time around, the concession was awarded to EDF Services (Pvt) Ltd in 2004, a subsidiary of the EDF Group (Eastern Duty Free) covering three departure and two arrivals shops, with the main departure shop covering an area of around 450sq m.
The prime competition for duty free shops at Karachi Airport comprises other 'foreign' airports through which Pakistani travellers transit on their travels to and from Pakistan - and primarily Dubai International Airport, where many Pakistanis transit en-route to and from Europe and the US.
According to the CAA's annual report for 2008 [the last available to date-Ed], non-aeronautical revenue to the CAA in Pakistan from all of its airports accounted for around 25% of total revenues in the year.
Comment: It will be interesting to see whether the CAA will receive many offers for this tender considering the ever-growing security concerns and killings in Karachi that have deterred foreign investors in other business sectors from investing in the location. Only this month, Karachi endured yet more violence when 33 people were killed and 165 were injured by bombings in the city.
News related to "Civil Aviation Authority;Karachi tender"
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