LAWA Selects Westfield To Develop And Manage Food, Retail Services At LAX


The Los Angeles board of Airport Commissioners approved an agreement for Westfield Concession Management to develop, lease and manage the food, retail and passenger services at Los Angeles International (LAX).  

The 17-year contract’s forecasted minimum revenue to the airport is $331.1M over the full term, which is comprised of a two-year development period and a 15-year operational period.  Westfield and its concessionaires will be required to invest no less than $81.9M in initial improvements and $16.4M in mid-term refurbishment improvements to the Tom Bradley International Terminal (TBIT), the new TBIT which is currently under construction, Terminal 2 (the airport’s second busiest international terminal) and the iconic Theme Building.

“Los Angeles World Airports is undertaking a $4.11B modernization program at LAX to improve customer service, safety and security at one of the most significant international gateways in the world,” said LAWA Executive Director Gina Marie Lindsey.  “A major focus of our customer service 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.  Our selection of Westfield Concessions 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.”

A panel comprised of four Los Angeles World Airports executives and one outside member evaluated proposals from three proposers based on the following criteria:  concession development experience/capabilities; design and construction experience/capabilities; management team dedicated to LAX; conceptual plan for LAX terminal improvements; financial capacity and commitment; process for concessionaire selection and approval; managing initiatives defined under the Federal Aviation Administration’s Airport Concessions Disadvantaged Business Enterprise (ACDBE) Program; managing concessionaire performance and operations; and financial proposal.

The agreement will cover a minimum 84,261 sq. ft. of concessions area. The agreement with Westfield marks the first time LAWA has adopted a Terminal Commercial Manager business model.

Wheaton, Md.-based Westfield Concession Management, a division of the Westfield Group, offers airport retail development services, among them strategic planning and market research, project management, and permanent and specialty leasing. It developed and manages concession programs in airports such as George Bush Intercontinental (IAH), Washington Dulles International (IAD), Ronald Reagan National (DCA), Orlando International (MCO) and others.

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