General Mitchell International (MKE) in Milwaukee is seeking bids on an opportunity to lease, develop and manage or operate concessions at the airport. The winning bidder will be required to invest in airport infrastructure in the form of consolidating the existing three security checkpoints into one central checkpoint, as well as invest private capital to enhance the concessions program.
The checkpoint change will alter the concessions layout, shifting the vast majority of concessions to the post-security area. MKE’s current program is heavy on pre-security concessions, which MKE Director Ismael “Izzy” Bonilla said is “really not generating the kinds of revenues that we think it should be generating.” A post-security program is expected to result in significantly increased spending.
In an interview with ARN, Bonilla said the quasi-privatization approach is a win-win. “We get new concessions, we get a mix of local and international offerings, and we re-energize our concessions program,” he said. “We’ll restructure the concessions program, making it more post-security than pre-security. The operator who wins gets a long-term profit-sharing type of program in which they do well, we do well and the airlines are happy.”
MKE is asking bidders to show how they would create a sense of place at the airport and improve the passenger experience. The term of the contract will not exceed 20 years.
A pre-proposal meeting and networking conference will be held Jan. 31. The deadline for proposals is May 5. Bonilla told ARN he expects to select a winning firm in late May and embark immediately on the changes. He expects the project to be completed by the end of 2018.
