GIAA responds to DFS’ new lawsuit

By Doug Newhouse |


Guam International Airport Authority has responded to DFS Guam’s latest lawsuit alleging wrongdoing ahead of last year’s duty free award to Lotte Guam.

 

 

In the latest chapter of this long-running dispute, DFS has filed its lawsuit in the Superior Court of Guam, naming both the GIAA and Lotte Duty Free. This follows DFS being passed backwards and forwards from one courtroom to another. It is only now that it has been able to take its case back to this latest Superior Court after it was decided that the case could not be heard by the Office of Public Accountability after all.

 

As expected and in previous submissions, DFS is highlighting the same series of alleged actions and events as misconduct on the part of the GIAA and Lotte as previously. It continues to maintain its position of more than one year that the airport authority should have temporarily postponed the award of the concession until all the arguments had been heard in the dispute and a final ruling given.

 

The GIAA says that it is having none of this however, having released the following open statement locally to the Guam press last week, entitled ‘GIAA Specialty Retail Concession Update’. [This statement has been reproduced in full below thanks to written permission from the Pacific News Center in Guam, to whom we are grateful-Ed].

 

Lotte Duty Free at Guam Airport.

 

DFS CONVINCED OF ‘WRONGDOING’

STATEMENT BEGINS: The latest complaint filed in Guam Superior Court by DFS Guam L.P. relating to the specialty retail concession contract rehashes old accusations that the A.B. Won Pat International Airport Authority, Guam (“GIAA”) has already refuted in numerous court filings and public statements.

 

Earlier in the month, the Guam Superior Court entered final judgment in favour of GIAA, dismissing the first lawsuit brought by DFS in this same matter. Yesterday’s court filing by DFS comes in the wake of dismissal of DFS’s protest by Guam’s Office of Public Accountability on September 30, 2014.

 

Since DFS’s first attempt to stop Lotte from taking over the GIAA duty free concession failed in July 2013, Lotte has renovated and opened the Airport concession space and made over $20 million in capital improvements at the Airport pursuant to its contract with GIAA. Such improvements include much needed renovations to Airport bathrooms and the food court.

 

Under the GIAA/Lotte contract, Lotte also pays GIAA $15.4 million in annual minimum guaranteed rent which is more than three times greater than the minimum guaranteed rent paid by the predecessor concessionaire, DFS. Based in large part upon the Lotte concession contract, GIAA was also able to obtain over $200 million bond financing in September 2013.

 

 

Guam International Airport and a DFS shop before the concession changed hands last year.

 

 

GIAA ACCUSES DFS OF ‘LEGAL MANOEUVRING’

“GIAA expects to prevail in the latest action as we have in every other attempt by DFS to dispute a fair and competitive bid process that continues to pay dividends for the people of Guam. This matter has been a distraction and has taken far longer than it should have because of all of DFS’s legal manoeuvring and tactics.

 

“Fortunately, we were able to move forward with projects that not only make our Airport a more beautiful and efficient facility, but also enhance the security and safety for our people and the traveling public,” said Chuck Ada, GIAA Executive Manager.

 

“GIAA is committed to making the A.B. Won Pat International Airport a world-class facility that will help fuel economic growth for all of Guam. The new concessions contract with Lotte that was awarded through an open, competitive process has led directly to a significant series of improvements at the Airport and allowed GIAA to move forward with $110 million in capital projects, financed in part by revenues guaranteed under the new contract.” (Statement ends).

 

TOP IMAGE: Part of Lotte Guam’s boutique offering at A.B. Won Pat International Airport Authority, Guam.

Asia & Pacific

Asia Pacific Travel Retail Awards: The Winners

TRBusiness and m1nd-set can today (13 March) reveal the winners of the 2024 Travel Retail...

The Americas

Details emerge of JFK T1 commercial programme and duty free tender

Qualified travel retail operators are being invited to participate in a request for proposals...

International

JCDecaux research offers major passenger insights

New research insights from Ipsos UK compiled for JCDecaux provide a revised outlook of air...

image description

In the Magazine

TRBusiness Magazine is free to access. Read the latest issue now.

E-mail this link to a friend