The Ministry of Transport and Aviation has awarded the Core Category Duty Free tender at the Bandaranaike International Airport, to Flemingo Duty Free on a 40 % revenue share basis This is the first time that tenders were called for the Core Category Duty Free contract.
The tender was for two spaces, one being occupied by the World Duty Free Group (WDF) and the other by Flemingo Duty Free. The tender was keenly contested by renowned international bidders including incumbents World Duty Free Group, a Dufry Company at 36%, B & S from the Netherlands at 35%, Shilla from Korea at 34% and Aer Rianta at 28%. The Government has achieved success as their revenue share has increased from US $ 22,000,000 to almost 40,000,000, an 80% increase in revenue compared to the increase in traffic of only 14%.
Reportedly as the No 2 and No 3 bidders did not qualify due to technical issues, the Cabinet of Ministers has taken a decision to retender the second space to ensure that the Airport maximizes revenueThe World Duty Free Group, has been operating the core category duty free shops at the Bandaranaike International Airport for the past 20 years. The WDF group employed around 300 people.