"LAX awards concessions contract to shopping mall developer"

Thursday, June 7, 2012

LAX awards concessions contract to shopping mall developer
The Los Angeles (CA) Times


The overhaul of the dining and shopping experience at Los Angeles
International Airport advanced Wednesday with the award of a major
concessions contract to a prominent shopping mall developer.
 
Airport commissioners granted a 17-year agreement to Westfield Concession
Management, a unit of the Westfield Group, the developer and operator of 55
shopping malls around the country, including in Culver City and Century
City.
 
Westfield will be responsible for developing, leasing and managing
restaurants, beverage stands, retail shops and some passenger services in
Terminals 1, 3 and 6.
 
LAX officials say the airport will earn $180 million in revenue during the
first 10 years of the contract. Westfield and its concessionaires are
required to invest at least $78.6 million for improvements and $15.7 million
to refurbish their operations half way through the contract.

"Los Angeles World Airports is undertaking a $4.11-billion modernization
program at LAX to improve customer service, safety and security at one of
the most significant international gateways in the world," said Gina Marie
Lindsey, the airport department's executive director. "Our selection of
Westfield Concession Management will allow us to meet the demands of today's
travelers for quality dining, shopping and other services in a timely,
cost-effective manner."

 Earlier this year, Westfield was selected to develop an array of
concessions in Terminal 2, the landmark Theme Building, where the Encounter
restaurant is located, and the Tom Bradley International Terminal, which is
undergoing a $1.75-billion renovation.
 
The selection of a shopping mall developer represents a change in the way
concessions contracts have been awarded in the ongoing effort to enhance
passenger amenities at the nation's third-busiest airport, which has
historically received low marks for its dining and retail outlets.
 
In the past, airport officials have relied on companies that specialize in
the selection and oversight of restaurants, beverage outlets and retail
shops at commercial airports.

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