PIA seeks minimum $1m for duty free start up

By Doug Newhouse |

OLYMPUS DIGITAL CAMERAPakistan International Airlines Corporation is tendering a five-year inflight duty free contract (with a 5-year extension option) and asking bidders for a start-up minimum capital investment of $1m-plus for the procurement of 200 ’icarts, 200 hand-held computers, promotional materials and several other items. The tender closes on December 21.

 

PIA management says it wants to offer a service that is comparable with other carriers around the world with a contract, which will take a percentage of sales as commission ‘and incentives offered for its sales force’. At the same time, the concessionaire appears to take responsibility for most other costs according to the basic RFP information.

 

Bidders can earn up to 20 marks out of the 100 evaluation criteria if they can demonstrate they have managed more than five inflight projects. Another 20 are available for companies who have employed personnel with 10 years technical experience.

 

Curious PIA is also giving 10 marks to companies who have had no litigation issues over the last 10 years and this grades down to zero for those who have been involved in more than three litigations in the last three years. Companies who have paid the most income tax also receive the highest marks at 20 if they can demonstrate an annual turnover of Rs.20m or more.

 

Pakistan International Airlines

A Pakistan International Airlines 747. (Photo credit: Adrian Pingstone).

 

PIA says that its fleet of long-range Boeing 777 aircraft comprises 777-200LR, 777-200ER and 777-300ER, serving international destinations in USA, Canada, UK and Europe through its 777 fleet. It also operates Airbus A320s on mostly domestic and regional routes and Airbus A310s on Far East, regional and domestic routes.

 

In addition to sales onboard its fleet, PIA is also asking for carts and hand-held computers to be supplied for certain unspecified VIP lounges and departure gates, which will doubtless be identified within the actual tender documents. All costs related to the purchase and allocation of carts, computers and other requirements are to be borne by the concessionaire.

 

In return, PIA promises to direct, manage, supervise and control all PIA’s flight attendants and employees; to follow the concessionaire’s duty free flight announcements and videos with the necessary actions; to make sure reservation departments designated ticketing offices, VIP lounges and airport ticket counters distribute all marketing and promotional materials; accept and encourage pre-flight duty-free orders; to allocate two flight attendants to inflight cart sales onboard; ensure staff attend concessionaire training; and many more provisions.

 

The relevant documentation for this tender, including the pre-qualification forms can be obtained from the following link: http://www.piac.com.pk/PIA_Business/pia-Business_Procurement.asp

 

Proposals can also be sent by courier addressed to: Director Procurement & Logistics, P&L Department, PIAC Head Office, JIAP, Karachi by December 21.

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