Flemingo International CEO Atul Ahuja has confirmed that the company has won a five-year contract to operate the larger of two duty free shops at Colombo Bandaranaike International Airport.

This latest award is understood to correspond to just one of two concessions that were originally tendered last June, with each business historically operated by Flemingo International and World Duty Free in competition with each other.

Flemingo International CEO Atul Ahuja confirmed to TRBusiness earlier today that the retailer had won the concession after the news was broken by a local newspaper report. However, no formal statement with any monetary details has yet been forthcoming from the Commercial & Properties Division of Airport & Aviation Services (Sri Lanka).

NINE-MONTH ‘ON OFF BID PROCESS’

Originally, the airport offered two contracts comprising both departure and arrivals shops, with all bidders informed last year that in order to qualify they needed to provide a $900,000 bid security bank guarantee. However this bid process subsequently ground to a halt.

At that time, the new spaces on offer consisted of two departure airside concession areas of 5,060sq ft and 3,060sq ft, plus two arrival shops of 2,646sq ft and 2,665sq ft respectively.

Clockwise: Top left: The previous World Duty Free store at Colombo Airport next to an artist’s rendering of the new airport which is scheduled to open in 2020. Bottom right: Another shot of the new airport and a past image of the Flemingo Duty Free shop, complete with car promotion.

SECOND TENDER SCHEDULE…

Products that are permitted to be sold include wines and spirits, fragrances, cosmetics and toiletries, confectionery and tobacco [although tobacco sales are not permitted by law in the airport’s arrivals shops-Ed].

This first award is expected to be followed by another shortly, with both concessions also expected to transfer to the new $400m airport currently being constructed – provided it opens on time in 2020.

As reported, this is being funded thanks to a 40-year loan from the Japan International Cooperation Agency (JICA).

This 180,000sq m terminal building project is designed to increase the airport’s capacity by another 15m passengers a year.

Sri Lanka attracted just over 2m tourist arrivals (2,050,832) in 2016, corresponding to a 14% increase over the 1,798,380 total recorded by the Sri Lanka Tourism Development Authority (SLTDA).

For more background on the ‘original’ tender last year and the new airport facility click here: http://www.trbusiness.com/regional-news/asia-pacific/colombo-eyes-5-yr-bids-and-new-400m-terminal/103605