Denver Airport waits for duty free appeal process

By Doug Newhouse |

Denver International Airport (DIA) has formally confirmed that it is still waiting to see when an appeal by DIA Retail Fashion/DFASS will be heard against its seven-year duty free contract award to the Dufry/Hudson Group.

 

The contract is scheduled to begin this June, according to Heath Montgomery, Denver’s official media spokesman. Asked recently ‘if this challenge is now fully over’, referring to DIA Retail Fashion/DFASS’ appeal, Montgomery said in an email statement: “They did file an appeal. We are waiting on a decision. I don’t have a timeline.” [The continued accuracy of this position was once again clarified by Montgomery today-Ed].

 

As reported, the new contract – expected to generate around $53m over the full term – was awarded to Dufry last September, with the retailer holding a 67% share in its ‘Denver Duty Free’ joint venture company. [The existing duty free retailer is a joint venture between Nuance and DFASS, trading as Liberty Tax & Duty Free Shops].

 

Denver International Airport. [Photograph provided courtesy of Denver International Airport].

AIRPORT CONFIRMS CONTRACT APPEAL

The Denver contract decision was originally challenged a month after the award by DIA Retail Fashion/DFASS back in October 2014. At that time DIA Retail Fashion/DFASS alleged wrongdoing by Denver Airport officers, only to see that protest subsequently dismissed on a procedural technicality.

 

The planned new contract at Denver is expected to cover three core locations, with a total area of 560sq m: two DF&TR in-line stores located in the centre cores of Concourse A and Concourse B, plus one at the Mezzanine Level. There is also an option to develop and operate a speciality perfume, cosmetics and fashion accessories store in Concourse C.

 

British Airways has been operating at Denver International Airport for more than 15 years [Photograph provided courtesy of Denver International Airport].

Denver recorded its busiest year in history in 2014, handling total passenger traffic of 53,472,514 – an increase of 1.7% on the 52,556,359 in 2013. DIA also set new records for international passenger traffic in 2014, with a total of 2,208,209 passengers – a rise of 12% over 2013.

 

The airport also served an all-time high of 191 destinations around the world during 2014, surpassing the 187 destinations served during 2013. New air services in 2014 included non-stop services to Panama City, Panama, as well as Guadalajara and Chihuahua, Mexico.

 

TRBusiness’ confirmation of the original Denver Airport award to Dufry/Hudson can be found here: http://www.trbusiness.com/index.php/regional/americas/16029-denver-confirms-dufry-as-duty-free-partner.html

 

DIA Retail Fashion/DFASS’s September 11 2014 submission to the District Court, Denver County, Colorado Motion for Temporary Restraining Order and Preliminary Injunction can be found by clicking here: https://s3.amazonaws.com/s3.documentcloud.org/documents/1311737/dia-complaint.pdf

 

TRBusiness’ last story can be found at the following link: http://www.trbusiness.com/news-in-brief/dfass-alleges-denver-wrongdoing/73498

 

 

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