IT STARTED in 1947 at Shannon and has since expanded to 12 countries. Now Aer Rianta International wants to add the United States to its global map of duty free outlets.
The duty free arm of the Dublin Airport Authority has teamed up with Shilla Duty Free of South Korea to pitch for a potentially lucrative 10- year contract at Los Angeles International Airport (LAX).
If successful, it would mark Aer Rianta International’s first entry into the US market. The closest it has come so far is Canada, where it operates shops in Montreal, Halifax, Winnipeg and Ottawa.
Aer Rianta International has operations in 12 countries, including Cyprus, Russia and the Middle East. China is the next frontier, with 11 shops due to open in Kunming on June 28th.
The winning consortium, which will run duty free shops at the eight terminals at LAX, will be expected to pay more than $100 million a year to the airport.
Typically, duty free operators are required to pay 30-40 per cent to the airport manager for their concessions.
LAX is a big gateway to the US for Asians, so Shilla’s track record in running duty free outlets at airports in South Korea should lend weight to the consortium’s bid.
The Korean company opened Louis Vuitton’s first airport shop at Incheon and clearly knows what it takes to tempt cash-rich Asians to hand over their plastic for premium brands.
Aer Rianta International and Shilla face stiff competition. Seven groups have been shortlisted, including the incumbent DFS Group, the world’s biggest duty free operator. Bids were submitted last month and a winner is expected to be chosen by the end of June.
