The Task
AviAlliance approached our team to conduct a comprehensive due diligence and revenue forecast to aid their acquisition bid for the airport concession. Following the takeover of the airport operation, we were also asked to work with the airport’s commercial team to outsource key commercial contracts and develop an immediate turnaround plan.
Our Approach
We began our strategy by conducting a comprehensive due diligence assessment, which included an in-depth analysis of the current commercial operation. We assessed space allocation against passenger numbers, flows, and profiles. We also evaluated the product mix and shop concepts’ alignment with the passenger profiles and implemented marketing and sales strategies. Furthermore, we reviewed all existing contracts and financial data, including insurance policies, guarantees, and contract format, and benchmarked turnover and revenue figures.
Additionally, we developed a business development strategy that spanned the project’s short–, medium–, and long-term stages. We collaborated with architects, designers, and engineers to assess existing space and retail unit designs and develop new ones where necessary. Our immediate turnaround plan focused on modifying the product mix and pricing, enhancing sales and marketing efforts, and fostering staff training. We also facilitated relocations of shops, updated KPIs, and agreed on terms of service with retailers.
Our team developed a comprehensive revenue forecast for each business line, which became an essential reference point in the new strategy. We also outsourced an advertising master concession contract and a car park management agreement, which were the basis for developing a new RFP and a standard commercial contract for all commercial activities at the airport.
The Result
Our efforts helped the client successfully take over the airport operation, which now has a fully operational terminal. Professional third-party companies now manage the outsourced commercial concessions, leading to improved overall airport performance.