Concessions Agreement for LAX

The Los Angeles Board of Airport Commissioners has a approved a 17-year Terminal Commercial Manager Concessions Agreement with Westfield Concession Management LLC to develop, lease and manage food and drink, retail, speciality retail and other passenger services at Los Angeles International Airport (LAX), which is operated by Los Angeles World Airports (LAWA).
The forecast minimum revenue for LAWA is $331.1 million over the full term, which comprises a two-year development period and a 15-year operational period.  Westfield and its concessionaires will invest at least $81.9 million in initial improvements and $16.4 million in mid-term refurbishments to the following four facilities: the existing Tom Bradley International Terminal (TBIT), the new TBIT currently under construction, Terminal 2 (LAX’s second busiest international facility) and the Theme Building.  The agreement covers a minimum of 84,261sq ft (7,828m2) of concession area.
Executive Director of LAWA, Gina Marie Lindsey, said:  “LAWA is undertaking a $4.11 billion modernisation programme at LAX to improve customer service, safety and security.  A major focus of our improvements is to create a cohesive, memorable and high-quality dining and shopping experience with a variety of new and innovative options that offer a ‘sense of place’ reflecting the Los Angeles region.”
Peter Lowy, Westfield Group’s CEO, said the company was “fully committed” to the project.
Westfield will select concessionaires subject to LAWA approval and design, develop and oversee construction of concession and related spaces.  The company will also negotiate and administer contracts with the concessionaires and market the facilities.  Although the contract stipulates that it cannot operate any of the concessions, Westfield will monitor and manage the performance of each business.
The agreement calls for Westfield to place a high priority on developing areas critical to the opening of the Great Hall/Core and West Gates phases of the new TBIT, which will cover 1.3 million sq ft (120,774m2) and is due for completion in spring 2013.
Westfield currently has similar operations at nine other US airports, including New York’s John F Kennedy International, Boston’s Logan International and Washington’s Dulles International airports.