"Moscow's Sheremetyevo Evicts Retailers to Lure Famous Brands"

Wednesday, January 19, 2005

Sheremetyevo Evicts Retailers to Lure Famous Brands
Russia - The Moscow Times


Sheremetyevo Airport is evicting scores of retailers from its international
terminal to make room for big-name foreign brands and more lounge space for
travelers.

"Sheremetyevo is an internationally recognized brand and its services should
be represented by world-famous brands," Mikhail Vasilenko, the airport's new
commercial director, said in an interview Tuesday.

Vasilenko, part of the new management team installed by the federal
government late last year, said some two dozen tenants -- including
restaurants, drugstores and taxi companies, who collectively occupy about
one-third of the terminal -- have until Thursday to vacate their premises
after their contracts were not renewed Jan. 1.

One of the ousted companies, drugstore operator Komek, said it was unaware
that its contract had been terminated, while another, Krona, which runs
bars, said it was disappointed to be kicked out after six years.

Sheremetyevo extended the contract of Aerofirst, operator of Moscow Duty
Free shops, and is still negotiating with Aeropit, which has restaurants on
the ground and fourth floors that Vasilenko said "take up more space than
they should."

A number of tenders will be held later this year to attract companies
offering better quality services and merchandise at more affordable prices.
"We would like more comfort for passengers and make services more
transparent and civilized," he said, declining to name any of the
multinational companies the airport is hoping to lure.

The changes at Sheremetyevo, which has been operating above capacity for
years and has long been considered one of the world's worst major airports,
are part of an improvement plan drafted with the help of Fraport, the German
operator that runs Frankfurt Airport.

Under the plan, all new tenants will have a fixed lease and pay the airport
18 percent of revenues.

Vasilenko declined to comment on the new rates, saying only that current
rates are "very high and differ for each company."

With plans to construct a badly needed third terminal still up in the air,
Vasilenko said the airport is moving forward with a stage-by-stage $70
million overhaul of Sheremetyevo-2.

Work to replace the entire lighting system will begin next month, while more
extensive renovations are slated to start in the fall, he said.


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