New concessions

The most important event for the concession portfolio in 2008 was the expiry of the contract for 52 locations along the Italian motorway network. In this context, Autogrill has signed contracts with an average duration of 8-9 years and estimated cumulative revenue of €1.75bn, for food & beverage and retail operations at 45 locations, confirming its competitive capacity following the renewals in 2004-2005. Other achievements include the extension of existing contracts and development in new geographical markets. The following are of particular note:

  • the 35-year extension (from 2010 to 2045) of the food & beverage and retail services contract for the only rest area on the Delaware Turnpike, where the Group expects to gross $1.2bn over that period;
  • solidification of Florida airport operations (food & beverage and retail) through the extension of the Tampa concession until 2015 and the extension of the Miami contract through 2011, with estimated cumulative revenue of $670m and $75m, respectively;
  • extension until 2018 of the contract to provide food & beverage and retail services at Little Rock National Airport in Arkansas, with estimated revenue of $115m for the period;
  • extension of food & beverage concessions at the airports of St. Louis, MO and Phoenix, AZ: the former through 2020 and the latter through 2010, with projected cumulated revenue of more than $585m and $130m, respectively;
  • new contracts at the airports of Indianapolis, IN; Atlanta, GA and San José, CA. The Indianapolis and San José contracts are for food & beverage and retail services and will respectively generate an estimated $145m (in 10 years) and over $330m (2009-2020). The two new contracts in Atlanta will expand the Group's retail operations at the airport and will produce estimated revenue of over $270m between 2008 and 2015;
  • debut in two new U.S. airports - Albany, NY and Knoxville, TN - with food & beverage operations; cumulative revenue are projected at $60m for the former (2009-2018) and over $20m for the latter (2009-2014);
  • extension until 2020 of the retail concession contract for the Empire State Building in New York, with cumulative sales expected to top $190m in 12 years;
  • build-up in the Pacific region, with contracts for food & beverage services at several locations in Changi Singapore Airport, where concessions will last from one to three years and generate total cumulative sales of over $15m;
  • contracts for food & beverage and retail services on eight Grandi Navi Veloci ferries, with total projected revenue of around €100m over the five years of the agreement;
  • a higher profile in Ireland, through a contract to manage food & beverage outlets at Belfast Airport, with estimated cumulative revenue of over £30m in 10 years;
  • debut in Egypt with food & beverage services at five locations in Cairo International Airport, producing an estimated >$15m over the five-year contract;
  • three-year extension of the food & beverage concession at Bucharest Airport;
  • 24-year extension, through 2032, of the travel retail & duty-free concession at Amman International Airport in Jordan;
  • expansion towards Central and Eastern Europe with new activities in Germany, where the agreement with local operator Tank & Rast covers the management of four food & beverage locations at rest stops on the A6 (Nuremberg-Heilbronn) and A3 (Frankfurt-Passau) Autobahn, for estimated revenue of about €10m in the first year of the concession;
  • three-year extension of in-flight catering and in-flight retail services with low-cost British carrier Monarch Airlines;
  • new in-flight contract at Sharjah International Airport in the United Arab Emirates.