NEWS ROUND-UP Judge favours DFS in Guam dispute as GIAA lodges appeal


DFS Group has heralded a Guam Superior Court ruling that voids the 2012 duty free concession RFP at A.B Won Pat International Airport and voids and sets aside Lotte Duty Free’s concession contract. Confirming the decision to TRBusiness,


DFS did not provide further comment. Instead, it chose to issue a statement in


reaction to Guam Superior Court Judge Hon. Arthur Barcinas’ decision that Guam Airport Authority (GIAA) ‘violated’ Guam procurement law in awarding the concession to Lotte Duty Free, as first reported by local news outlets. GIAA confirmed separately that it


will appeal the decision in a filing to the Supreme Court of Guam seen by TRBusiness. The development is the latest in a long-


running dispute between DFS and GIAA dating back to 2013, at the time Lotte Duty Free originally took over the 10-year contract after offering $15.4m in minimum annual guarantees for the concession. DFS had previously alleged ‘corrupt’ procedures in GIAA’s handling of the


concession contracts through claims Lotte Guam ‘was allowed to change what should have been its sealed bid after the deadline, allegedly breaking RFP rules’. DFS and GIAA returned to the High


Court last May to begin a new trial, with DFS Guam’s Lead Trial Counsel Maurice Soh telling TRBusiness in the build-up that the legal steps were designed precisely to explore and uncover the facts about what happened. GIAA had already rejected a lawsuit filed


against it in April 2016 by DFS Guam L.P under the Sunshine Act as ‘without merit’.


DFS legal representatives have


maintained all along that the process is designed ‘to bring to the public eye the need for integrity, fairness, and an adherence to the rule of law in Guam’. A spokesperson from Lotte Duty Free


commented: “The decision is based on a technical argument that involves DFS and the airport and the final result is yet to be watched. “Lotte Duty Free will continue to operate


the duty free concession ordinarily unless the situation changes at the end. That is all we can say for now.”


Kansai Airport arrivals duty free to begin trading in spring


Kansai Airports has appointed ANA Trading Duty Free Co Ltd (ADF) to operate three new duty free arrivals shops scheduled to open in Spring 2018. Two arrival stores will open in the north


and south wing baggage collection areas of Kansai International Airport’s Terminal 1, with one arrival shop located in the International Terminal 2 extension located in front of the quarantine inspection area. Kansai Airport’s arrivals shops will


follow the earlier lead set by Tokyo Narita International Airport, which opened Japan’s first duty free arrivals stores in September. “These will be the first duty free shops


located in the international arrival areas at Kansai International Airport,” Kansai Airports said in a statement. “After the opening, arriving passengers can buy goods


exempt from duties and taxes.” The three arrivals shops will cover a


combined total of about 95 sq m of retail space and sell liquor and tobacco products. “The introduction of arrival duty free


shops will make passengers’ airport experiences more pleasant. Japanese travellers will no longer need to carry duty free items abroad and foreign travellers will be provided more shopping opportunities,” added Kansai Airports. Arrivals duty free shopping presents a new opportunity for


Kansai Airports to generate additional travel retail income after cancelling earlier plans to open a downtown duty free store in Osaka. “I think tobacco will be the main product


as liquor is cheaper in the domestic market than in duty free,” Florence Dalon, Kansai Airports’ Executive Officer and Deputy Chief Commercial Officer (Non-Aeronautical) told TRBusiness in an exclusive interview published in the November 2017 print issue. “With arrival shopping we will not take


a lot of risk, not like with downtown duty free shopping. The retail space is small and it will be the same products as in our departure shops. “Duty free arrival shopping is additional


business. We think it will be Japanese passengers using arrival shops, but it could be Chinese and other foreigners.”


HUGOBOSS.COM


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