Indian conglomerate GVK managed Bali international airport in partnership with Government of Indonesia awarded major contracts to Dufry and DFS for duty free and retail breaking new grounds and setting new standards in the fastest growing aviation market in Asia.
The ceremony was attended by President Commissioner of Angkasa Pura I Surajo Siswodihardjo, GVK President Project Development, Karthi Gajendran, Marketing Business Development Director, Robert D. Waloni, General Manager of Ngurah Rai Commercial SBU, Kenneth R. Guldbjerg as well as other high level delegates from Angkasa Pura I, Dufry International Ltd and DFS.
The pre-bid meeting that was held in Indonesia for the commercial concessions at the Bali international airport saw an overwhelming response from all over the world with participation from over 200 prospective bidders.
The bids culminated into selection of DFS and Dufry International, the first and second largest duty free operators respectively in the world. The deals with international majors have been signed for a period of 5 years. The retail and duty free awards will be followed by Lounge, Forex and F&B concessions.
The new international terminal is in the process of completion to essentially cater to the upcoming APEC 2013 (Asia Pacific Economic Summit 2013).
The summit is scheduled in October which US President Barack Obama is likely to attend.
Speaking on the significant development, Founder Chairman and Managing Director of GVK, Dr. GVK Reddy said, "The contract with Dufry International and DFS is in line with our stated endeavour to take this airport to international standards and help Indonesia in realizing its growing potential as a key destination in the region.
"Bali in Indonesia has emerged as a prime destination for tourist traffic; and retail, F & B and duty free go a long way in defining the passenger experience at any airport. We are committed to bring our expertise in transforming the Airport to a truly pronounced experience."
GVK Vice Chairman G V Sanjay Reddy stated: "The high level of participation by Indonesian and International companies in the international tender process and the outcome demonstrates the success from two major international airport companies collaborating with each other."
"The deal with Dufry international and DFS will enable a 6 fold increase from the present Rs.300 crore to excess of Rs.1500 crore in overall commercial revenue of AP1.
"This has a guaranteed component of over 80%. The MAGR (minimum annual guaranteed revenue) of AP1 can be bench marked against Asia's leading airports like Changi and Hong Kong. The current MAGR is $2/pax, and is expected to achieve $12/pax," he said.
Commenting on this occasion, Tommy Soetomo, President Director of Angkasa Pura I, stated: "The non-aeronautical revenue will make a significant contribution to our overall income and growth. We are happy to see the initiatives implemented jointly with GVK are delivering success within a short period of time.
"We are also pleased to see that the international tender process has been conducted in accordance with best international practices and Indonesian laws. This has resulted in the selection of Dufry international and DFS following the rigorous process."
Bali being the "Island of Paradise" and Ngurah Rai International Airport as the "Gateway to Paradise", Angkasa Pura Airports is aiming to become one of the top five airports in the region.
It is the 2nd busiest airport in Indonesia, with highest international traffic.
Through this partnership Angkasa Pura Airports believes that Ngurah Rai International Airport will deliver high quality brands, unique products and exceptional customer services.
The airport has current traffic of about 13 million ppa with a growth of 10% pa. It caters to international premium leisure and business travellers primarily from Australia, China, Japan and Malyasia and many more.