RavenFox

RavenFox: Alpha wins two UK airport contracts
24-Jan-2007


Alpha Airports Group has won two seven-year contracts at Bournemouth and East Midlands airports

Alpha Airports Group has won a seven-year contract to operate the duty-free concession at Bournemouth airport. It has also been awarded an extension to its retail operation at East Midlands airport for the same length of time.



The deals encompass the tax-free offer and books and news concessions at both airports, as well as catering at East Midlands airport.



Alpha expects the contract to generate sales in excess of £130m ($250.9m) at East Midlands airport, while its Bournemouth operation should achieve sales of £20m ($39m) over the seven-year period.



East Midlands airport's passenger terminal is undergoing an £8m ($15.4m) redevelopment programme which covers 11,500sq ft (1,068sq m). Alpha plans to spend more than £2m ($3.9m) developing and refitting the existing units, which will include a refurbished and extended duty-free area, a new airside newsagent, a bookshop and refitted food hall. Construction began at the end of 2006 and the changes will be completed by April.



Alpha also plans to invest £400,000 ($772,000) over the seven-year period at Bournemouth airport and revealed plans to develop a new store by 2010. Alpha will initially be operating in 1,200sq ft (116sq m), but expect this to increase to 3,000sq ft (279sq m) with the new development.



Alpha Airports Group CEO Peter Williams said: “We are committed to improving travel-retail in the UK’s leading airports and are delighted to be working with Bournemouth and East Midlands airports to provide a unique and more sophisticated shopping experience.”



The retailer released a trading update on January 24 before entering its close period for the financial year to January 31 2007. The statement said: “Alpha’s domestic UK markets remain very competitive and continue to operate on low margins. The UK security issues in August 2006 and the resulting restrictions to hand baggage allowances continued to be a factor in Alpha’s UK retail outlets throughout the remainder of the year. While airside trading has gradually returned to pre-incident levels, the impact on landside outlets, with passengers having to proceed to security more quickly, remains and is expected to continue to be a factor in the future.”