Sakal Wins Airport Electronics Stores Bid

The Sakal group has won the new tender for operating the duty-free electronics store at Ben-Gurion International Airport, including the new Ben-Gurion 2000 terminal.

Sakal currently runs the electronics store in the existing terminal, and claims that it has lost tens of millions of shekels in the last year, due to the drop in the number of passengers using the airport. The company says that the contract with the Israel Airports Authority no longer reflects the reality of the Israeli economy. It is assumed that the conditions under which it won the new tender are an improvement over its present deal.

Sakal's bid was worth a total of $11.77 million in annual franchise fees to the airports authority - well above the minimum required bid of $9 million. Sakal's bid beat the next best offer, by Shekem Electric, by $600,000.

A third competitor, James Richardson, actually out-bid Sakal by $3 million, but due to the authority's policy of increasing competition to benefit consumers, Richardson - which already won the tender for the cosmetics and perfume store at the airport - was not officially allowed to compete for the electronics franchise.