AER RIANTA has won its biggest ever overseas contract, to sell spirits and tobacco at 12 duty free shops in Hong Kong's giant new airport which is due to open in April next year, according to industry sources in Hong Kong.
An announcement is expected to be made today by the Hong Kong Airport Authority.
The turnover from the stores which Aer Rianta will run at the Chek Lap Kok Airport is expected to be well over $200 million (£125 million) a year, bigger than the cash intake at Aer Rianta's Channel Tunnel and Moscow Airport's dutyfree ventures.
Just as significantly, the contract opens the door to further Aer Rianta advances in the fast growing Chinese air travel market and raises its profile in the Asia Pacific region. Aer Rianta International has already gained a foothold in China with a consultancy contract at the dutyfree shop at Beijing International Airport, and will be well in the running for a major management contract at a new state of the art international terminal due to open in Beijing in 1998.
The new Hong Kong Airport is part of a $20 billion (£12.5 billion) development project for the territory, which returns to Chinese sovereignty on July 1st this year. It will relieve the overburdened Kai Tak Airport in Kowloon and, operating around the clock, will handle twice as much cargo. The passenger terminal will be 1.2 km long and the airport will have a capacity for 60 million passengers a year, making it potentially the busiest air travel axis in the Asia Pacific.
Aer Rianta bid for the Hong Kong contract after entering a consortium with two international financial backers and setting up a joint venture in which it has a majority holding with Adhaven, a company owned by Belfast born Mr Brian O'Connor, chairman of Allied Group Ltd, of Hong Kong.
It won against competition from DFS (Duty Free Shops), the international chain which was cofounded by Irish American businessman, Mr Charles (Chuck) Feeney.
Consumption of wines and spirits in China has been increasing sharply since the country began opening up and, per person, Hong Kong people drink the largest amount of Cognac in the world.
The huge volume of spirits and tobacco sales at the Chek Lap Kok Airport will give Aer Rianta a chance to make highly competitive bids for other dutyfree contracts in the region.