As fully expected, DFS Group has launched a new lawsuit against Guam International Airport Authority (GIAA) in the Superior Court of Guam.

 

This follows the filing of a bid protest appeal by DFS Guam LP, the local subsidiary of the Hong Kong-based global DF&TR player in September before Guam’s Office of Public Accountability (OPA) where DFS was effectively ordered to take its complaint.

 

The OPA appeal was supposed to be the final stage in concluding this long-running dispute of around 19 months, but it was not to be after Guam’s Public Auditor directed that the case should be sent back to the courts.

 

DFS has subsequently re-filed its case with its allegations consistent with those forwarded during the various other hearings. It continues to maintain that GIAA acted improperly in both the lead up to – and award – of the 10-year contract to Lotte Duty Free, which is said to be worth just over $150m over the full term.

 

Speaking to TRBusiness in September on why the retailer is so vigorously pursuing this case, DFS Group Chairman and CEO Philippe Schaus was resolute: “It’s all about making sure that this industry remains transparent and that we all respect the rules and the laws. If that doesn’t happen anymore that is not good for the industry.”

 

Part of the new Lotte Duty Free offer at Guam International Airport.

 

DFS REPEATS EARLIER ALLEGATIONS

As part of this DFS has repeated many of its earlier allegations related to the lead up to GIAA’s contract award to Lotte. These include gifts given to members of the Guam Visitors Bureau on a visit to a Lotte store in Seoul [prior to the award-Ed]. DFS also claims prevarication on the part of the GIAA to obstruct the investigation, while allegedly threatening to take sanctions against DFS.

 

DFS also continues to maintain that the airport authority should have delayed any award to Lotte Guam until a full investigation had been concluded into the alleged irregularities.

 

Meanwhile, the legal representative for Lotte Duty Free Cesar Cabot has rejected all of DFS’ allegations.

 

TOP IMAGE: Guam International Airport.