NMIAL doubles advertising revenue, adds new concessions

NMIA Airports Limited (NMIAL) is reporting a 20.55 per cent improvement in non-aeronautical revenue (NAR) for fiscal year 2011-2012 on the back of improved income from concessions and advertising.

NMIAL is the Airports Authority of Jamaica subsidiary that operates the Norman Manley International Airport.

The airport company earned US$14.76 million in non-aeronautical up from US$12.24 million in the previous fiscal year.

NMIAL plans to spend some US$6 million will be spent in the coming fiscal year on capital improvement projects, according to Senior Director of Commercial Development and Planning Alfred McDonald.

With respect to NAR-generating projects, new plans for the current fiscal year include tendering for additional retail and food concessions, as well as a sports bar.

"Other plans are in progress to attract more non-travellers to the airport for information and entertainment. These plans are in their embryonic stages," said McDonald.

NMIA Airport is a wholly owned subsidiary of Airports Authority of Jamaica (AAJ) which was incorporated in 2003. It operates NMIA under a 30-year concession agreement with AAJ.

The arrangement is expected to be set aside once the state-owned airport is privatised.

NMIAL collects most of it commercial revenue from concession fees collected from non-fuel retailers. The rental of retail space brought in 24 per cent more revenue, up from US$5.59 million at year-end March 2011 to US$4.51 million at March 2012, due in part to the addition of new businesses.

New operators included mini-mart Gladfiseeyu in the arrivals section, a duty-free concession, food operators Dasheen and Island Grill, and Club Kingston in the executive lounge.

31 retail stores

There are 31 retail stores currently listed on the NMIA website, including restaurants and snacks, and sellers of coffee and rum, music, art and craft, aromatherapy and fine accessories.

Rental revenue for advertising space and maintenance rose by 66 per cent, from from US$1.75 million to US$2.90 million in the last year.

The increase was due to a significant jump in additional indoor and outdoor advertising spend at the airport.

Common Use Terminal Equipment (CUTE) system charges provided revenue of US$2.087 million down more than three per cent from US$2.155 million the year before.

McDonald said the dip in CUTE income was "in keeping with the marginal decline in passenger traffic".

The airline industry has been affected, he said, by increased fuel costs, the Air Passenger Duty introduced by the British government, and the slow recovery from the global economic crisis.

Concession fees from fuel were flat at US$1.66 million, which the commercial manager notes was in keeping with the marginal decline in aircraft movements.

Other NAR revenues included US$1.08 million of utility service fees and US$834,000 from the car park, and maintenance charges of US$258,000.

Car park fees were increased in August.

business@gleanerjm.com