Aer Rianta wins New Zealand duty free contract

State company Aer Rianta International (ARI) has won a contract to operate a new duty free concession at New Zealand’s largest airport from next July.

ARI, part of Dublin Airport Authority (DAA), said on Thursday that Auckland International Airport has chosen it to operate one of two new duty free concessions at the gateway for seven years.

Auckland handles around 15 million passengers a-year and has 20 airline customers. About 70 per cent of all visitors to New Zealand arrive and depart through the airport.

The Irish company’s concession will cover 2,300 square metres of shopping space across several arrival and departure areas. It will begin operations there on July 1st and the contract will add 230 people to its existing 3,500-strong workforce.

Auckland International Airport will have to award a second duty free concession to satisfy New Zealand’s competition law.

As well as its outlets in Cork and Dublin airports, ARI runs duty free stores in Bahrain, Barbados, Canada, Cyprus, Lebanon, Oman, and India. The business has a turnover of close to €880 million a-year.

The company did not reveal what level of sales it is likely to generate at Auckland. On the basis that 3,500 staff support an existing turnover of €880 million, a further 230 should add almost €60 million to that figure.

ARI’s chief executive, Jack MacGowan, described the Auckland deal as significant and said it would give the business its first foothold in Australasia.

“We had to pitch against the best in the world in the competition process for this contract and I’m delighted that we came out on top,” he added.

Auckland Airport general manager, retail and commercial, Richard Barker, said that ARI's proven track record impressed his company.

ARI is a fully-owned subsidiary of DAA, the State-owned group responsible for managing Cork and Dublin airports.