No takers for retail stores at Chennai Airport
Posted on: 31/Aug/2015 10:31:53 AM
Plans to float short term tenders for duty free stores in the Chennai Airport have been scrapped. The plan, made by the Airports Authority of India (AAI), was scrapped after there were no applications for the project. The AAI has, instead, opted to float tenders for a seven year contract. Alternately, it may approach private firms the handle the commercial contracts.
AAI had called for tenders in the retail stores at Chennai, Kolkata, Ahmedabad and Jaipur airports. But many of the brands that had been approached for the Chennai Airport did not respond citing that the contract was too short. The uncertainty around the privatization of the airport is another factor.
An airport official said, `The companies were wary of investing when they found out that they will lose around a year obtaining permissions and clearance for a three-year contract. Because the ministry thinks that neither AAI nor local airports has the expertise to identify the best retail companies and duty free firms, it is thinking of outsourcing commercial activities entirely to a private entity. This company should be able to identify best retail and duty free brands and offer a share of the revenue to AAI.`
