DFS captures
duty-free bid
DFS Group, which has had duty-free rights at Hawaii airports since 1962, has won a new contract to last through May 2006, with a bid of $26.7 million for the first eight months in a formula that works out as $40 million a year for the next two years.
DFS was the only bidder and its bid, submitted five minutes before the bids were opened at 10 a.m. yesterday at Honolulu Airport, was for the minimum rent required by the state Department of Transportation.
"DFS is pleased to be able to continue the tradition of fine duty-free shopping for the benefit of the Hawaii airports system as well as our employees," said Ed Brennan, the San Francisco-based chairman and chief executive officer of DFS, in a press statement issued immediately after the 10 a.m. bid opening.
DFS has nearly 1,000 employees in Hawaii, according to a company spokeswoman.
"Barring further unforeseen world events, we feel confident that international arrivals to Hawaii will improve and that concession sales will reflect that improvement," Brennan said.
DOT Director Rodney Haraga said he looked forward to working with DFS over the length of the contract and said he appreciated the company "submitting this bid despite the downturn in the number of Hawaii visitors following 9/11."
