Dépêches

Airport Group Releases Second Report in Series About Private Developers in Airport Concessions: Sales Not Enough to Justify Lower AIRMALL Rents

Dépèche transmise le 12 mai 2011 par Business Wire

Airport Group Releases Second Report in Series About Private Developers in Airport Concessions: Sales Not Enough to Justify Lower AIRMALL Rents

NEW YORK--(BUSINESS WIRE)--The Airport Group, the national airport policy and development arm of UNITE HERE, has released its report titled Sales Not Enough to Justify Lower AIRMALL Rents. This is the second in a series of analyses about the use of private developers in the airport concessions and its negative impact on the airport industry. The series, titled AIRMALLed: Failures of the Airport Concessions Private Developer Model, involves a close look at Airmall USA, a company that manages concessions at four airports in the United States.

In its latest report, available here, the Airport Group measures Airmall’s sales performance in relation to sales at peer airports. The analysis firmly establishes that overall concessions sales generated under Airmall’s management are not high enough to offset the lower rent revenues collected by Airmall’s airport clients.

In the first report in this series, the Airport Group demonstrated that the percentage rent of concessions sales paid to airports which utilize Airmall’s management services are lower than rents collected by peer airports without a private concessions developer (see Less Rent Generated Under the Developer Model). The latest analysis now broadens the picture, and indicates that despite sales performance, concessions revenue collected by Airmall airports still falls short of peer airports.

The Airport Group will be monitoring the list of airport markets with upcoming concessions redevelopment that may be considering the developer approach. This list includes Los Angeles, Chicago, Fort Lauderdale, Seattle Tacoma, Minneapolis and Detroit. Transition to the developer approach at these markets represents a potential total loss of $45 million annually in non-aeronautical operating income for the public airport sector.

The Airport Group is the Airport and Infrastructure research, policy and development arm of UNITE HERE.

UNITE HERE is the union for travel hospitality workers, representing 25,000 airport workers across the U.S. and Canada. UNITE HERE-represented airports serve 80% of U.S. airline passengers and generate over $3 billion in annual concessions sales.