KUALA LUMPUR (Aug 28): Malaysia Airports Holdings Bhd (MAHB) has launched a request for information (RFI) as it reviews the operating model for duty-free retail at the country’s major airports, signalling a potential revamp of a business that has come under scrutiny over passenger spending and competitiveness.
The airport operator is seeking market views on commercial and operating models that could deliver a more distinctive retail offering, with greater product differentiation and choice to reflect changing passenger shopping behaviour.
The review covers Terminal 1 and Terminal 2 of the Kuala Lumpur International Airport, Penang International Airport, Langkawi International Airport, Kota Kinabalu International Airport and Kuching International Airport. Responses to the RFI are due by 5pm on Oct 2.
In a statement on Friday, MAHB said this follows a benchmarking exercise comparing its duty-free and travel-retail business, Eraman, with regional and international airports that has identified opportunities to strengthen the existing model and highlighted alternative approaches to improving the passenger retail experience.
"Building on these findings, we are issuing an RFI to gather market perspectives and better understand different commercial and operating models, industry capabilities and investment appetite," it added.
MAHB managing director Datuk Mohd Izani Ghani said the RFI will allow the group to test those findings against market insights and industry capabilities. "That will give us a stronger basis to determine what is right for our passengers and our airports over the long term.”
MAHB stressed that the exercise is a market-sounding process rather than a procurement exercise.
"No decision has been made on the future concession model or whether MAHB will proceed with any subsequent procurement exercise," it said.
Existing duty-free concessionaires have been engaged throughout the review process. Individual engagements were followed by a joint dialogue session to explain the objectives and approach of the RFI, provide clarity on the process and give operators the opportunity to raise questions and share their perspectives.
"The findings from the RFI will be assessed alongside the benchmarking results and other relevant considerations before management develops its recommendations to MAHB's board of directors. Any future recommendations will be guided by data and market insights, with the passenger experience remaining the primary consideration," it added.