SriLankan Airlines– the flag carrier of Sri Lanka – is seeking tenders for the provision of duty free products to be sold on-board as part of a five-year concession starting on 1 April 2017. The deadlines for both technical and financial bids close at 1300hrs (Sri Lankan time) on 15 November.

The minimum commission expected by the airline [calculated as a percentage of total sales of duty free products sold on-board] is 35%, but bidders “are encouraged to bid at amounts higher than this”. There will also be a Minimum Guaranteed Annual Commission calculated on a per/pax basis that will rise annually over the contract period (see the link below for details).

The carrier – which transported 12.9m passengers in 2015 – states that the technical bids will be opened 1.5 hours after the deadline at the Board Room, Airline Centre, Bandaranaike International Airport, Katunayake, Sri Lanka where one representative from each bidding company will be allowed to attend.

KEY REQUIREMENTS

SriLankan Airlines says that, under this RFP, bidders must have three years’ relevant experience and must be able to supply a minimum number of references from the following categories: fragrances, cosmetics, skincare, watches, jewellery, travel essentials, souvenirs, liquor and tobacco. This amounts to about 130 products for each six-month cycle starting 1 April 2017.

The winner will have to print two separate catalogues, one for the carrier’s wide-body operation and one for the narrow-body operation every six months at the supplier’s cost (approximately 20,000 catalogues).

The successful bidder will also have to submit a ‘performance bond’ of $350,000 to secure the award and performance of the contract, says the airline.

Full details of the tender including who to contact by email can be found by clicking here.