The Los Angeles Board of Airport Commissioners have approved a 17-year Terminal Commercial Manager Concession Agreement with Westfield Concession Management to develop, lease and manage food, retail and passenger service concessions for three terminals at Los Angeles International (LAX). The terminals–1, 3 and 6–total nearly 70,000 sq. ft. of concession area.
Westfield and its concessionaires will be required to invest a minimum of $78.6M in initial improvements and $15.7M in mid-term refurbishment improvements. The agreement calls for a two-year development period and a 15-year operational period with forecasted minimum revenue to Los Angeles World Airports (LAWA) of over $17M for the first fully developed year and over $180M over the first 10 years of the term.
“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, executive director of LAWA. “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 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.”
The process was not without incident as a rival bidder filed a protest mid-May. The Los Angeles Board of Commissioners dismissed the protest filed by AIRMALL USA contending among other things a flawed evaluation process and violations to express terms of the RFP by Westfield.
This is the second contract the Los Angeles World Airports has awarded Westfield. Earlier this year Westfield was awarded a 17-year contract to provide similar services to LAX’s existing Tom Bradley International Terminal, a new Tom Bradley International Terminal (currently under construction), Terminal 2 and the airport’s Theme Building. Under that contract Westfield and its concessionaires are required to invest at least $81.9M in initial improvements and $16.4M in mid-term refurbishment improvements.
“Westfield is very proud to be selected to partner with Los Angeles World Airports in the transformation of Los Angeles International Airport,” said Peter Lowy, chief executive officer for Westfield Group. “We are fully committed to bringing our global resources and development expertise to deliver an iconic, world-class airport experience.”
Westfield Concession Management, the airport division of the Westfield Group, has provided airport concessions development and management services for more than 16 years. Other airports it provides these services for: John F. Kennedy International (JFK), Boston Logan International (BOS), Ronald Reagan Washington National (DCA), Washington Dulles International (IAD), George Bush Intercontinental (IAH), Newark Liberty International (EWR), Orlando International (MCO) and Miami International (MIA).
