Aelia to land at Lima Airport as part of ‘pioneering’ 13-year profit split deal

By Luke Barras-hill |

Steady domestic and intra-regional air traffic offers exciting growth prospects in South America at the likes of Jorge-Chávez International Airport in Peru. Source: LAP.

Lagardère Travel Retail Chairman and CEO Dag Rasmussen has hailed a profit-sharing agreement with the operator of Peru’s Jorge-Chávez International Airport (LIM) in Lima as a ‘great vote of confidence’ in the retail concession model.

The multi-location travel retailer today (20 July) announced it had signed a 13-year contract with Lima Airport Partners (LAP) to exclusively operate duty free shops at the airport under the Aelia branding over 3,000sq m of commercial space.

In a statement, Lagardère Travel Retail says the partnership ‘sets new standards’ in the context of a retail concession model that – as industry observers are well aware – has drawn sharper focus of late for the way it handles risk and reward.

A DIFFERENT WAY OF DOING BUSINESS

Rasmussen said: “As we continue to face a great deal of uncertainty and are relatively new to the South American region, this profit-sharing agreement is a great vote of confidence from LAP.

“I am personally grateful for their trust and support in turning theory into action and opening up new perspectives for business models in our industry. We are also confident this is a stepping stone for our partnership with Lima Airport and its majority shareholder Fraport, so that we can all maximise our global expertise and reach to replicate this success elsewhere.

“We are thrilled to have found in LAP a like-minded partner who has demonstrated the most innovative and pioneering way of thinking, from selecting an operator via an innovative partnership selection process up to the contract terms.”

Lagardère Travel Retail believes the profit share will open up significant revenue potential for both partners, foster greater investment opportunities, while benefitting the traveller experience. Pictured is Lagardère Travel Retail Chairman and CEO Dag Rasmussen (third from left) alongside partners from Fraport AG and Lima Airport Partners.

Alongside introducing shops at Lima Airport’s existing passenger terminal, Lagardère Travel Retail will work with LAP to devise a new retail experience at the airport’s future terminal due to open in 2025.

LIM is one of South America’s busiest airports, having serving 23.6 million passengers in 2019 before Covid-19 struck and continues to scale up its Lima Airport expansion programme.

The long-term concession agreement between LAP – a Fraport AG majority-owned company – and Lagardère Travel Retail is claimed to be the first large-scale implementation of a profit-sharing model in DF&TR.

FURTHER GAINS IN LATAM

The Peru concession victory is a ‘significant milestone’ in plans to expand the group’s footprint in South America, continues Lagardère Travel Retail.

Recently, it was awarded the business to build and operate food service outlets at Arturo Merino Benítez Airport in Santiago, Chile.

Juan Jose Salmon, CEO of LAP added: “Our cooperation with Lagardère Travel Retail fits fully into our vision-of-the-future for airport retail.

“We believe that collaboration is the key to managing business relationships, as well as actively engaging in new partnership models.

“We are impressed by Lagardère Travel Retail’s high degree of engagement and innovation, which they will soon be bringing to the Peruvian airport retail market.

“In the context of LAP’s airport expansion programme, this agreement also sends a strong signal to Peru and the global aviation and travel industries.”

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