Aer Rianta International’s ongoing joint venture operations across the Middle East continue to perform strongly, according to CEO Jack MacGowan.

 

ARI has already reported that sales at its continuing locations outside of Ireland rose by more than 1% last year with its Middle East joint venture operations – including its strong partnerships in Beirut and Cyprus – achieving ‘very impressive performances’.

 

MacGowan says this is despite the impact of the civil war in neighbouring Syria on the former Phoenicia Trading operation and continued national economic challenges on the latter.

 

Delhi Duty Free, ARI’s joint venture operation at Indira Gandhi International Airport continued to enjoy strong sales growth during 2013. Turnover exceeded $120m there last year after just three full years’ trading and this has since increased substantially, according to CEO Jack MacGowan (below).

 

DELHI ON TARGET FOR $150M

As reported, he says this operation is right on target to hit around $150m in sales in 2014: “From $40m it’s nearly quadrupled in four years since we took it over,” he said [click here for full story: http://www.trbusiness.com/index.php/regional/indian-sub-cont/16157-ari-looks-to-double-delhis-120m.html].

 

MacGowan added that the only negative in India was the company’s decision to withdraw from its Mumbai Airport Terminal 2 concession. He said this was taken ‘in the wake of delay and difficulties experienced in securing certain required regulatory approvals and licences in sufficient time to meet the project’s operational and financing deadlines.’

 

MacGowan was also full of praise for the Phoenicia Trading Beirut Duty Free joint venture operation as he explained: “I can’t sometimes explain everything that happens in our business and the Syrian war has changed the mix of passengers going through and overall numbers are slightly down.

 

“But it’s more about the mix and particularly some of the high-spending customers are less frequent than they used to be.

 

UNBELIEVABLY GOOD RESULT…

“That being said, we invested in bigger, brighter shops in arrivals and in the luxury space on the right as you go through and they have been very effective, which has led to us having the biggest sales month ever in August.

 

“It’s unbelievable and I’m sitting here thinking I have to thank Chairman Mr Mohammed Zeidan and General Manager Ciaran O’Neill, because between them they have done a phenomenal job.

 

“I would think it would be even bigger if we didn’t have the issue of the war and the unrest, and I fervently hope that we find a peaceful solution soon.”

 

[An in-depth one-to-one interview with Jack MacGowan conducted in Dublin earlier this month can be found in ‘The World’s Top 10 Operators 2013’ report, accompanying the October 2014 issue of The Travel Retail Business].