Fortune shines on Aer Rianta's new Chinese duty free venture

AER Rianta directors wanted to open their sparkling new duty free store at Beijing international airport in early October, but…

AER Rianta directors wanted to open their sparkling new duty free store at Beijing international airport in early October, but the Chinese manager consulted his almanac and determined that September 20th at 4 p.m. was the most lucky date and time for a formal shop opening.

So precisely at 4 p.m. yesterday the ceremony took place, the Chinese having insisted that October 2nd, the date which better suited some of the Irish Airports Authority's top officials who had to travel across the world for the event was not a favourable day.

It was a minor concession for the launching of what Aer Rianta considers to be one of its most significant foreign ventures since it constructed - the duty free shop at Sheremetyevo Airport in Moscow in 1987.

"This is without doubt the second most important development since Aer Rianta opened in Moscow," said Mr Michael Patton, assistant chief executive of Aer Rianta and director general for international activities, after the opening ceremony.

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Mr Fang You Xin, president of Beijing Airport, cut a ribbon held by six young women in long dresses and the air crackled with the (recorded) off.

The little function was attended by the Irish Ambassador, Mr Joe Hayes, and watched by some bemused international shoppers, a section of the store having already opened for business a month ago without any almanac problems.

Aer Rianta came to Beijing after signing a contract on January 6th this year to act as management consultants.

The duty free store has transformed the shopping area in the rather rundowns airport, which up to now had remained immune from the rush to establish gleaming new retail centres in downtown Beijing.

Aer Rianta executives have their eye on the booming Chinese market. Modern international airports are being opened in a number of Chinese cities and new international routes are being established as China opens up to the world.

"Asia is an absolutely huge market," said Mr Patton. "For us to be involved with Beijing Airport Authority is of great importance to the company. This is a first for us in Asia and it will be a shop window for Aer Rianta."

Since setting up Moscow Duty Free as Joint Enterprise No 38 under former Soviet premier, Mr Mikhail Gorbachev's early reforms, Aer Rianta has developed a multi million business across the globe. It manages duty free shops in several international airports, including Moscow, St Petersburg, Vybourg, Kiev, Bangkok, Karachi, Dubai and Kuwait, and now Beijing.

Beijing Duty Free is expected to bring in $34 million (£21.2 million) in retail sales in its first year. Moscow duty free now has a turnover of $100 million a year. The Aer Rianta, duty free shop at the Channel Tunnel between England and France is said to gross $150 million annually, through no figures have been published.

The Irish Airports Authority beat off string competition, from the international duty free company, DFS, to land the Beijing contract. The fact that it is a semiState rather than an independent company is believed to have played a part in the decision by the communist Chinese authorities to select Aer Rianta as a partner.

However, speaking at a dinner following the opening, the shop manager, Mr Zhang Zheng De, said that they brought in Aer Rianta as "the most advanced duty free shop management in the world".

Mr Dermot O'Leary, Aer Rianta director and chairman of Aer Rianta International East Asia, said the good relations between Aer Rianta and Beijing airport reflected the good relationship between China and Ireland.

Referring to the date and hour of the opening set by Mr Zhang, he told the guests that he was sure this would mean a bright future for Aer Rianta's partnership with the Chinese. "We will have a golden autumn," Mr Zhang replied.

Company executives at yesterday's ceremony in Beijing included Mr O'Leary, Mr Patton, Mr Eamon Foley, Mr Fran Murphy, Mr Liam Flood, Mr Noel Fox, Mr Frank O'Donovan, Mr Brian O'Connor, and the resident general manager of Aer Rianta International East Asia (ARIEA), Mr Peter Jackson.