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ARN News Flash

MarketPlace, PHL give diners Wi-Fi
A pilot program has been underway since Sept. 1 in the Concourse B/C food court at Philadelphia International Airport (PHL), which will allow those with laptop computers to connect to the internet while eating, according to an airport announcement. The service is free and is expected to last possibly into early spring, at which time it will be evaluated for possible permanence or expansion into other areas of the Airport. In areas outside the B/C food court, states the press release, wireless internet access costs $7.95 for a 24-hour connection, or $39.95 for unlimited monthly usage that works across the entire Wi-Fi network as well as on AT&T roaming partner networks. The pilot program is a collaboration among the Airport, MarketPlace Redwood, L.P., the company that develops and manages the airport’s concessions program, and AT&T, the Airport’s Wi-Fi service provider. “The demand for Wi-Fi at PHL is growing exponentially. In the past year, usage has doubled to 10,000 connections per month,” noted Charles J. Isdell, the City’s Director of Aviation.

JCDecaux Signs Six Year Deal with LAX
For the first time in its history, Los Angeles World Airports will allow dvertising at two of its airports and selected JCDecaux to handle the concession under a six-year contract. The company will install 365 advertising displays at Los Angeles International (LAX) and 31 at Ontario (ONT). JCDecaux is expected to generate up to $80 million for the airport over the term of the contract. According to the LA Times, commissioners finally agreed to allow advertising in its airport terminals in part to improve its image and modernize the airports. JCDecaux plans to install dramatic displays such as movie trailers on huge screens suspended from the ceiling and innovative presentations on baggage claim carousels.

“This is really creating a totally new approach to airport advertising,” says Bernard Parisot, president and co-chief executive of JCDecaux. The agency will also research other marketing opportunities at the airports – such as bringing in a company that makes high-end fixtures to retrofit LAX’s outdated restrooms.

Delaware North helps rebuild New Orleans
Delaware North Companies (DNC) has announced it will partner with Habitat for Humanity to sponsor the entire cost and building of two homes in one of the areas of New Orleans most devastated by Hurricane Katrina. DNC associates will work with other volunteers, “and it’s the company’s hope that one of its world-class chefs will prepare the first meal for these families in their new homes,” stated Wendy Watkins, vice president, corporate communications, Delaware North Companies, in the press release.

In addition, DNC will support the efforts of New Orleans Kids Café©, which is part of a nationwide program sponsored by America’s Second Harvest-The Nation’s Food Bank Network. Kids Cafe provides a safe place for children living in low-income areas of the city to eat a meal in a restaurant-style setting versus a soup-kitchen line, states the announcement, and allows older children and teenagers to learn valuable hospitality skills as they assist with all facets of running the cafe, giving them the skills for future opportunities.

“From days after the hurricane to this anniversary, we continue to be touched by the personal stories of heroism, commitment and determination. We are certainly grateful that our company can make a difference in these communities,” stated Watkins.

“It is because of donations like this one from Delaware North Companies that our programs are able to expand to reach the needs of our ever-changing community,” stated Mel Jones, community outreach manager, Second Harvest Food Bank of Greater New Orleans and Acadiana.

The Moodie Report reports…
US. Aldeasa has topped the bids in the long-running and controversial Atlanta Hartsfield-Jackson International (ATL) duty free tender. According to The Moodie Report the following are the first year minimum annual guarantees bid for the five year contract:

1. Aldeasa: US$9,550,001

2. Dufry: US$8,038,532

3. Duty Free Americas: US$6,818,770

4. The Nuance Group: US$6,503,000

5. Alpha: US$3,126,000

At stake is a concession covering duty free sales in Concourse E at Hartsfield-Jackson International Airport. Bids closed on 2 August. Sales last year reached US$15.5 million, airport management told The Moodie Report earlier this year. Aldeasa is understood to have been confident of driving sales to the US$30 million level but even so its bid is another highly aggressive one, following in the wake of its recent victorious bids for Vancouver International and Kuwait airports. The company is clearly pursuing an ambitious strategy of international expansion that will make it less reliant on its home market of Spain – where several of its core airport contracts are set to go to tender later this year. On last year’s figures Aldeasa’s minimum annual guarantee represents a whopping 61.65% of sales. If turnover moves up to US$20 million – the calculation at least one other bidder made – that ratio comes down to 47.75%, still at the extreme end of the scale. But if Aldeasa can deliver sales of US$30 million, the percentage falls to 31.83%. It’s a calculated risk by the Spanish travel retailer, for whom Atlanta would be its first US airport contract – though sister Autogrill company HMSHost is US-based and is of course the Atlanta incumbent, continuing to operate the contract on a month-by-month deal until the new retailer is named.

YVR’s Completes Exterior International Terminal
Vancouver International Airport Authority celebrated the completion of the exterior of the first phase of the International Terminal’s nine-gate expansion. The $200-million, 322,348 square ft. building is the cornerstone of the Airport Authority’s $1 billion construction program and will feature the first four gates. The building has been under construction since June 2005 and will be completed and operational by spring 2007. Currently, the capacity of the International Terminal is at its maximum during peak travel times. Phase one will ease the strain on facilities and will accommodate future needs and expected growth. By 2010, YVR is expected to serve 21 million passengers. The building will house new waiting areas, duty-free shops, services, restaurants and dining areas. Leading up to the new aircraft gates, two of which will be able to accommodate the Airbus A380, will be a stream running through the centre of the building. At the end of the creek will be a 114-cubic-litre aquarium and a jellyfish tank. The aquarium will feature sea life native to British Columbia and the jellyfish tank will house 100 moon jellyfish. The project was funded through a combination of airport revenue sources, including retail sales, airplane landing fees and the Airport Improvement Fee. The $1 billion construction program is expected to generate 5,200 person-years of employment and $525-million in direct GDP.

ARN’s October Issue Underway
ARN is currently working on the publication of its upcoming October issue. The issue is packed with pertinent feature stories and notable news items to keep readers up to date.
In the ARN October issue:

Follow Up: Airports Benefit from Project: Airports Campaign

Airports: Creative Uses of Land Amplify Revenues

Update: Airport Offers to Counter Liquids Ban

Logistics: Service and Security Key While Building New Stores

Trends: New Technologies & Products for Parking

Survey: Who’s Charging What for Parking

5 & Under: TSA Thwarts New Service at Small Airports

Technology: Best in LCD technology

Booming: Dunkin Brands Sweet on Airports

Space deadline: September 15, 2006
Artwork deadline: September 20, 2006
Contact Gary Krasner for advertising opportunities: phone: 561.355.8488 ext. 107; fax: 561.355.8188; email: gary@airportrevenuenews.com.

ARN Conference Agenda Online
ARN has posted to its website the agenda for the upcoming 2007 Airport Revenue Conference. Link to www.2007conference.airportrevenuenews.com to review the agenda and for further information about registering. Be sure to register before December 18th and receive a $20 discount off your room rate per night. The conference will be held February 18-20, 2007 at the Shingle Creek Resort in Orlando. The much-anticipated, exciting Awards Show Dinner will be held at the Hard Rock Café© coliseum.

Host Expands in Ireland
As part of an airport redevelopment program, HMSHost Europe has opened new food & beverage locations in landside, airside, and in the arrivals at the new terminal of Cork Airport in Cork, Ireland according to the company’s announcement. Host’s press release states its plan was to offer is “a combination of international brands and dining experiences based on popular local concepts and flavors.” The program is comprised of Cork’s Food Market, which has local products such as Maher’s Coffee, Arbutus bread and Belvelly smoked salmon. There is a Starbucks in the arrivals area on level 1 offering snacks, sandwiches, salads, etc. Also landside is Red Bar, an Irish pub that sells “typical Irish beer, international drinks and a traditional Irish meal plus a warm friendly atmosphere,” according to the press release. Two concepts are airside: Lir Café© featuring Segafredo Coffee and Lir Chocolate. Segafredo’s famous espresso and cappuccino, is prominently located in the airside area after security. And The Sports Bar, which sells fine draught ales and beers, and freshly prepared hot entrees, sandwiches, soups and salads. According to Pat Keohane Cork Airport’s CEO, “the mix of local and international food brands will prove highly popular with passengers and will further enhance Cork’s long standing reputation as Ireland’s culinary capital.”

Trofie Signs Deal with Oregon’s Emerald City News & Gifts
Trofie, a marketing and advertising solutions provider has expanded its client base to the West Coast through a contract with Emerald City News & Gifts. The concessionaire operates two locations in Eugene Airport, a 1,000 sq. ft. store pre-security in the remodeled airport lobby, and a 350 sq. ft. store in the A-Gate area. According to store owners Carolyn and Daniel Brawn, employee training and retention are emphasized, and the company has received awards for exceptional customer service in their stores. “We have a great employee base and now we are looking for ways to maximize our revenue sales opportunities, says Carolyn. Trofie will evaluate the company’s merchandise and display techniques in creating a marketing and advertising plan.

RFPs ON THE STREET

CONCESSION OPPORTUNITY AT SAN FRANCISCO INTERNATIONAL AIRPORT
San Francisco International Airport invites you to participate in the selection process for three new concession opportunities located in Terminal 3, Boarding Area F. The selection process will be conducted through a Request for Proposal.

1. Terminal 3 Newsstands and Specialty Store Lease

2. Comprised four retail locations totaling approximately 3,749 square feet

3. Term is five years, with two one -year options

4. Minimum acceptable proposal amount of $725,000

5. Consist of two newsstands, a combined newsstand and café©, and one nationally branded retail store, as designed in the Request for Proposal.

6. Contact: Tomasi Toki or Gigi Ricasa

7. Boarding Area “F” Hub Specialty Store Lease “A”

8. Comprised one retail location totaling approximately 662 square feet

9. Term is five years, with two one -year options

10. Minimum acceptable proposal amount of $60,000

11. Proposer may choose one of the following concepts: sunglass, jewelry, or accessory.

12. Contact: Contact: Matthew McCormick

13. Boarding Area “F” Hub Specialty Store Lease “B”

14. Comprised one retail location totaling approximately 1,085 square feet

15. Term is five years, with two one -year options

16. Minimum acceptable proposal amount of $90,000

17. Proposer may choose the specialty retail concept for this Lease, provide that concept is currently not existing in this area of Terminal 3.

18. Contact: Eddie Dobbins

Staff will conduct an Informational Conference for the above-mentioned Leases and will discuss the desired concepts, minimum qualification requirements, address any questions relating to the Leases and receive comments from participants. Staff has scheduled the Informational Conference for Thursday, October 12, 2006, at 10:00 a.m. The Conference will be held at San Francisco International Airport, International Terminal, North Shoulder Building, Fifth Floor, Conference Room 28R. Written comments and recommendations will be accepted until close of business, October 18, 2006. Information and documents may be obtained by on-line at http://www.flysfo.com/rfp/bid/bid_list.asp?ptype=0 or by calling the aforementioned contacts at (650) 821-4500.

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