Further to our article in the last issue focusing on upgrade and expansion plans at Jordan’s Queen Alia International Airport (QAIA), Gulf-Africa Duty Free has spoken with Curtis Grad, CEO of Airport International Group (AIG), which operates QAIA. We asked Grad about how retail and non-aeronautical revenues generally figure in AIG’s ambitious expansion plans.
 
Gulf-Africa Duty Free: In a Jordanian business publication, you noted that non-aeronautical revenue now accounts for about 20% of total revenue at QAIA, and that you had your sights set on a level of 50%. How confident are you that you can get there, and how will you do it?
 
Curtis Grad: The global trend is in the area of a 50-50 distribution between aeronautical and non-aeronautical revenue. Our conservative targets are 30 to 35 percent by 2020, and in the range of 35 to 40 percent by 2030. This will be achieved through a combination of growth and diversification of in-terminal concessions, including traditional duty-free, specialty retail, F&B, advertising revenue streams, as well as development of certain unconventional and innovative commercial opportunities, both within the terminal and on the vast reserves of vacant lands available on the airport.
 
While the addition of new of gates will be done in stages, in 2012 and beyond, are the main facilities of the new terminal going to be done all at the same time?
 
CG: Yes, all facilities will be done at the same time from the first day of the new terminal building handover. These facilities include check-in area and counters, passport control, screening areas, staff facilities, all land side services areas, baggage handling system, baggage reclaim halls, commercial areas, offices, and transfer and transit facilities.

The capacities of these services have been studied to make sure they can handle different capacities of passengers per year, all through the coming 25 years, ensuring that the IATA level of service C standards will be maintained all the time.
 
How will QAIA handle new duty free slots? And who will run duty free at the airport?
 
CG: AIG has signed a long-term agreement with Aldeasa for development and operation of the duty free shops in the new terminal.
 
How many shops will there be, and of what type?
 
CG: In the main terminal departure area, we are going to have a walk-through shop. Other shops will be located in the arrival area and in the piers.
 
Watch for more on QAIA and AIG in our upcoming print edition.