Media reports say that the GVK Group-managed Bali International airport has awarded major contracts to Dufry and DFS for duty-free and retail respectively in one of Asia’s fastest-growing aviation markets. The contracts were awarded at a ceremony attended by President Commissioner of state-owned airport operator AngkasaPura I, Surajo Siswodihardjo, GVK president, Project Development, Karthi Gajendran, and other delegates from AngkasaPura I (AP-I), Dufry International and DFS.    

The bid meeting for commercial concessions saw overwhelming response, with over 200 prospective bidders taking part. DFS and Dufry International, the first and second largest duty free operators respectively in the world, were selected. These deals are valid for five years and will be followed by food and beverage, lounge and forex concessions.    

GVK Reddy, Chairman and Managing Director, said that the contracts with Dufry International and DFS are in line with its stated endeavour to take the airport to international standards. The new international terminal is in the process of being completed in time to cater to the upcoming Asia Pacific Economic Summit 2013 to be held in October. US President Barack Obama is likely to attend the Summit. GVK has a management contract with the Indonesian government on a base fee and an incentive fee based remuneration structure. The capital expenditure is funded by the Government.    

The deal with Dufry international and DFS will enable a six-fold increase from the present Rs 300 crore to over Rs 1,500 crore in overall commercial revenue of AP1.