Sri Lanka’s Transport and Aviation Ministry has awarded a five-year duty free contract to Flemingo Duty Free to operate one of the two core category spaces at Bandaranaike International Airport (BIA) following a successful tender process.
The tender was awarded to Flemingo on a 40 percent revenue share basis. The retailer will operate a 5,060- square foot departures store and a 2,646-square foot arrivals store covering the core categories only.
The tender was said to have keenly contested by renowned international bidders including the incumbent World Duty Free Group (WDFG) on a 36 percent revenue share basis, B & S from the Netherlands on a 35 percent revenue share basis, Korea’s Shilla on a 34 percent revenue share basis and Aer Rianta on a 28 percent revenue share basis.
The core category duty free contracts were tendered for the first time since inception. The tender was for two spaces—one previously operated by WDFG and the second by Flemingo Duty Free.
However, the Sri Lanka government has decided to retender the second core category space as reportedly there were technical glitches in the bids submitted.
WDFG, which has been operating at BIA for 20 years, recently closed its operations as the company failed to win tenders. WDFG employed around 300 staff.
However, with the government deciding to retender the second space, sources say WDFG has a very good chance of getting back into BIA.
The Transport and Aviation Ministry has already published the tender for the second space and the date of submission is April 19.
BIA handled 9.47 million international passengers in 2016, with passenger traffic growing by 14 percent compared to the previous year. The new airport terminal is due to be operational by 2020.