Cairo Airport Company contracted with Swiss Duty Free Company Dufry to lease two plots of land to establish free markets through usufruct for a period of five years that can be renewed.
The free markets are set to be established with the cost of 376 million Egyptian pounds (US$48 million).
Cairo Airport Company’s Chairman Ahmed Geneina said the company leased two plots of land to Dufry within the airport to be used for the establishment of Duty Free Shops. Genena said in an exclusive statement to Daily News Egypt that the contract period of five years will be subject to renewal upon the consent of both parties.
The rental value for the first plot is estimated at $22m while the other plot was leased for $25m, according to estimates by both parties. The company’s revenues in fiscal year (FY) 2014/2015 for commercial activities, services to passengers, and aircraft landing and waiting amounted to EGP 225.9m, compared to EGP 176m in FY 2013/2014.
Geneina said the company completed leasing spaces, offices, and lounges for Terminal 2, which is scheduled to open in the first quarter of 2016, amounting to EGP 600m for a period of five years.
The company intends to allocate this terminal to Gulf countries’ aviation companies, while Terminal 1 will be reserved for private Egyptian aviation companies.
Source: Daily News Egypt