Airport shop operator protests at losing concession

The former operator of a shop at the departure lounge of Malta International Airport filed a judicial protest against the airport and against C. Camilleri & Sons Ltd.

Gafà Saveway Ltd declared it had operated a shop known as Pick 'n' Mix at the airport for the past eight years. The last agreement it had entered into with MIA plc was for five years and expired on May 14.

This contract stipulated that the company was to pay MIA, on an annual basis, either 12.5 per cent of its gross turnover from the shop as a concession fee or Lm13,750 per annum, whichever was the highest.

The company added that it had paid over Lm79,000 in terms of the agreement to MIA plc in the years between 2000-2003 and that MIA plc had praised the manner in which it had operated the shop.

Before the expiry of the concession agreement the company had requested an extension and had met with MIA's chief executive officer. The latter had praised the company and had declared he was confident that the company's tender would be accepted when the call for tenders for the shop was issued.

However, Gafà Saveway Ltd had not been successful in its bid for the contract to run the shop, which was issued in April. The company submitted that it had offered to pay MIA 20.5 per cent of its gross turnover from the shop by way of a concession fee per annum or Lm39,000 whichever was the highest.

The company declared it had been informed in writing that the contract had been awarded to another company and had been requested by MIA to vacate the shop by June 14.

Gafà Saveway declared that the contract had been awarded to C. Camilleri & Sons Ltd under conditions which were much inferior to those offered by it.

Consequently, the award of the contract was not justifiable commercially. This was another case where the concession of retail outlets within the airport had been awarded to a bidder that had not made the most advantageous offer to MIA, the company claimed. This showed a lack of independence and transparency in the tender process.

The company formally requested MIA to revoke the concession awarded to C. Camilleri & Sons Ltd and to re-select the concessionaire for the retail outlet.

The protest was signed by Dr Edward Gatt, Dr Italo Ellul and Dr Anthony Ellul.