Nuance has won a contract to be the exclusive duty free operator at all Antalya International Airport terminals until 2024 in a deal which the operator says is worth E.3.2bn ($4.3bn) over the 17-year period.

According to the company, Nuance's 55% owned Turkish subsidiary (Urart) has signed a binding Memorandum of Understanding with Fraport and IC Holding after nine years of operating the duty free concession at Antalya?s Terminal 1, where it manages the main departure and arrival duty free shops, as well as 16 specialty shops on a total of 1,850sq m, employing some 300 staff.

The new contract is scheduled to commence from September 2007 and will initially cover Terminal 1. From September 2009, Urart will also operate Terminal 2 and the Domestic and CIP Terminals.

Handling some 14.8m passengers in 2006, Antalya Airport is the most important tourist gateway to the Turkish Riviera. Since the commencement of Fraport?s BOT Project (Build, Operate, Transfer) at Antalya in 1998, passenger traffic has soared by 130% – or more than 12% per year. Antalya is also one of Nuance's most profitable locations, although profits are obviously split with its partner.

Roberto Graziani, President and Ceo of Nuance said: ‘We are absolutely delighted to have been chosen as the exclusive duty free partner for Fraport and IC in this hugely important project for the development of tourism in Turkey. We look forward to contributing our international know-how and Turkish expertise regarding airport retailing to create a truly exciting shopping experience.’

Cengiz Iman, Managing Director, Net and Urart Duty Free Shops, adds: ‘We have established an excellent partnership with Fraport over the last nine years and we are honoured to be Fraport and IC Holding's partner of choice for this long-term project at Antalya Airport.’

COMMENT: This is the most important concession that the Nuance Group has won in many years where spending levels of passengers – particularly Russians – are very good. The exclusive nature of the contract (from September 2009) will also be a blow to the joint venture of Gebr Heinemann and Unifree Duty Free which currently operates in Terminal 2.

But while no financial terms have been revealed related to this new contract, it would also appear to be a good deal for Fraport and its partner IC Holding. The joint venture company announced that it had won the contract to operate Antalya International Airport in Turkey earlier this week, offering E.2.37bn ($3.19bn).

The German airport company already managed the airport's original international terminal at Antalya, but this deal will see it and IC Holding operate all three terminals at the airport until 2024.

Considering Nuance says that its new deal is worth E.3.2bn ($4.3bn) in sales turnover, it would be safe to assume that at least one third of that, if not half will be paid to Fraport and IC Holding in concession fees over the 17-year contract period. That corresponds to about half of what Fraport and IC Holding are paying to operate the entire airport until 2024 and effectively underpins the joint venture's bid.

Antalya Airport, which serves tourist destinations on the Mediterranean, is second only to Istanbul in terms of passenger numbers, with a passenger capacity of 16m a year. Fraport and IC Holding have agreed to pay 3% of the concession amount upon signing the contract. Following the takeover of the terminal operations, the rest will be paid in installments up to 2024, Fraport said.