Page 8 - ASUTIL 2023

INSIDER

Left to right: IAADFS Chairman (Dufry) Rene Riedi, ACI-North America President and CEO Kevin Burke and ACI- Latin America & the
Caribbean Director General Rafael Echevarne.

North and South American airport leaders examine the importance of
concession partnerships

In one of the critical information the world, which has seen some of the best “Asian traffic in Latin America is
sessions held during the Summit of the air travel recovery since the pandemic. practically non-existent. We have no flights
Americas in April, two influential regional Burke, discussing how the entire U.S. to China, so we are very much sheltered
aviation leaders shared their insights on air system was essentially shut down on from whatever was happening in Asia.”
the dynamics and changing developments April 20, 202, said: “Fast forward to today On the other hand, Latin America has
facing airports across North America, and we have almost recovered.” “an incredible air network with the U.S.
Mexico, Central and South America and Echevarne agreed about the and Canada. The flows are tremendous and
the Caribbean. “spectacular” aviation recovery in Latin traffic flows keep on going up.”
Kevin Burke, President and CEO of America and the Caribbean, which closed In North America on the other hand,
Airports Council International – North last year at 7% below 2019 figures. He air traffic is 9% below the 2019 levels,
America, and Rafael Echevarne, Director highlighted Mexico, where most of the with “the big hit” coming from the lack of
General of Airports Council International airports are run by the private sector, and international traffic, particularly from Asia,
– Latin America and the Caribbean, some of which are currently 25% above at both the East and West coast airports in
discussed a range of topics including how 2019 levels. the U.S. and Canada, said Burke.
infrastructure demands, labor challenges, Echevarne is very positive about “This was a severe decrease from that
security requirements, and regulatory the potential for retail and duty free. part of the world but we are seeing almost a
hurdles are being addressed to help Explaining that most Latin American total recovery by 2024,” he said.
advance the airport concessions business. airports are at levels below the world “If the numbers that we see coming
The session was moderated by average in terms of sales per passenger through the summer are what they are
Rene Riedi in his role as Chair of the and penetration (and were at lower levels supposed to be, we should be doing fine.
International Association of Airport & Duty even before the pandemic struck), he said: What happens in the fall and beyond that,
Free Stores, starting from the premise that “I think there’s a huge potential for the we’re not quite sure. But compared to
duty free and travel retail concessions are industry in Latin America.” where we were in 2021, when the industry
crucial to the airports’ success. One reason why Latin America air was at rock bottom, we went up pretty
Both Burke and Echevarne agreed that traffic is recovering so fast was that the quickly.”
duty free concessions are an essential part region was isolated from some international Rene Riedi, reiterating his opening
of the airport business model in this part of and global trends, he noted. remarks, said that up to 44% of airports’

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