CONTRACT CHANGES TO MEET CONCESSIONS CHALLENGES

​​In her recent article for Aviation Pros, Margaret Martin, President of Martin Airport Law LLC and former Chief Development Officer of Nashville International Airport, notes that the ultimate goal of an airport concessions program is to provide food, beverage, retail, and services for passengers. She also notes the challenging circumstances ARRA members and other concessionaires face including soaring construction costs, supply-chain woes, and labor shortages and accelerating cost. Margaret observes that airport contracting practices have not adjusted to current market conditions and, indeed, end up exacerbating the challenges. She calls it “a perfect storm.”

Margaret advises airports to re-consider their contracting terms by honestly assessing the impact of airport decisions on operators, differences between street and airport, or how airport policies may shift costs to concessionaires without adding equivalent value. She concludes that airports should be more flexible and creative to better meet the goal of enhancing the passenger travel experience.
 
Margaret’s article is a concise analysis of our industry’s pressing challenges. We encourage you to read it at this link to Aviation Pros.