TheMoodieReport.com

TheMoodieReport.com: "NETHERLANDS. Amsterdam Airport Schiphol today announced that it plans to operate its main liquor and tobacco concession in-house, from 1 January 2007.

The contract for the business in the See Buy Fly area in Departures is operated by KLM Tax Free Services. KLM�s contract expires on 31 December.

Schiphol Airport said: �Following successful consultations both parties have signed a letter of intent, which lays down the conditions for taking over the activities. The concession involves six shops and the employment of over 150 staff. It has been laid down in the letter of intent that the staff will be employed by Amsterdam Airport Schiphol and will retain their jobs.'

The Moodie Report understands that Schiphol Airport will take on not only shop staff, but also senior management and buyers too. At this stage it is unclear whether all of those offered positions with the new operator will accept.

Schiphol added: 'Taking over the liquor and tobacco concession is in line with the strategy of Schiphol Group�s Consumers Business Area, the aim of which is to further reinforce retail operations.�

The news comes as a big blow to KLM Tax Free Services, long-time operator of the liquor and tobacco contract. Last year it opened a 1,000sq m megastore in partnership with fragrances and cosmetics specialist Kapp� Schiphol.

UPDATE: Shortly after we revealed this story Martin Moodie spoke to Schiphol Group about the rationale behind the decision. Here is what the company had to say.

What led Schiphol Group to decide to take such a key product group in-house after so many years with a concessionaire?

Taking over the liquor and tobacco concession is in line with the strategy of Schiphol Group's Consumers Business Area to fu"