The Leading Airport Magazine

Since its announcement in June of 2013 of the development of Istanbul New Airport, talk of the €10.2 billion new mega-hub has had the air transport industry captivated. With the laying of Istanbul New Airport’s foundations İGA Havalimanı İşletmesi A.Ş., the company behind the industry-stirring new gateway, embarked upon one of the most significant infrastructure developments ever to be undertaken in Turkey – a project that will propel the nation to the centre of the global aviation industry.

The tender initiated by İGA Havalimanı İşletmesi A.Ş. for the management of Istanbul New Airport’s duty free shops was awarded to leading Turkish duty free operator Unifree DutyFree for 25 years. The company will build the largest duty free shopping area in the world in Istanbul New Airport, in a 53,000sqm footprint that will offer an unparalleled shopping experience.

Its opening will mark the beginning of a new epoch in Turkey’s history when it will, for the first time, truly bridge the two continents of which it is at the heart, and when the first phase of its construction is completed towards the end of 2017, Istanbul New Airport will have the capacity to handle 90 million passengers per year, and deliver flights to more than 350 destinations across a far-reaching route network that will connect the world. Ultimately 150 million passengers per year will use this mega-hub.

The airport will be located on 76.5 million sqm of land near the Black Sea on the European side of Istanbul, 35km from Istanbul’s Atatürk Airport. More than merely an air transport hub, Istanbul New Airport serves as an important investment in the future of Turkey. In a tender that was historic for the Republic, İGA Havalimanı İşletmesi A.Ş. will pay €26 million to the state for the operation of the airport, and will make further record-defying investments, as well as contributing heavily to the Turkish economy through the commercial volume that it will generate.

At the signing ceremony between İGA Havalimanı İşletmesi A.Ş., the company behind Istanbul New Airport, and Unifree DutyFree in January, İGA CEO Mertol Genç emphasised that the agreement was “the most important indicator that İGA’s vision, for which we have dedicated ourselves since the beginning, is also understood by the global aviation industry.”

The cornerstone of Istanbul New Airport was laid by then Prime Minister, now President, of Turkey Recep Tayyip Erdoğan in June of last year, and construction is now proceeding rapidly – perhaps the most significant milestone so far in the airport’s development being the momentous signing of the world’s biggest duty free agreement between İGA Havalimanı İşletmesi A.Ş. and Turkey’s principal duty free operator Unifree DutyFree – in which the German leader in travel retail Gebr. Heinemann has a 60.8% stake. Under the monumental contract Unifree DutyFree will create the largest duty free shopping area anywhere in the world at Istanbul New Airport, in a 53,000sqm complex that offers an unparalleled commercial experience to its customers.

At the signing ceremony in January, İGA Havalimanı İşletmesi A.Ş. CEO Mertol Genç emphasised that the agreement was “the most important indicator that İGA’s vision, for which we have dedicated ourselves since the beginning, is also understood by the global aviation industry”, and anticipation over that which will be created over the course of the new airport’s commercial development has since swelled throughout the air transport business. The industry is now following the development carefully, waiting with bated breath for a revolutionary experience that will transform the way we look at airport retail.

Genç explained that during the tendering process Unifree DutyFree came forth with a multitude of ideas to maximise the airport’s commercial revenues while enhancing not only the shopping experience, but also the entire airport journey of Istanbul New Airport’s passengers.

“Far from the cliché”

The development of Istanbul New Airport will be a period of gripping transition for Istanbul, and for Turkey, constructed in a way that captures the incomparable spirit and unique character of the city and nation. Under the 25-year duty free agreement Unifree DutyFree will reflect this approach, investing €120 million into its commercial activities, and gathering more than 400 domestic and foreign luxury brands under one roof with an architectural design that preserves the fabric of Istanbul – a factor on which, Genç explained to Airport Business, Unifree DutyFree’s victory in the tender was partially won. “When you go out for a tender for the biggest duty free contract you need to consider and evaluate so many aspects – in-depth knowledge of the passenger journey and experience, their global network and strength as a developer and operator, commercial vision and financials, of course, just to name a few,” he established. “This was a deal for 25 years, so the commitment of the winning party and having a sustainable operation were so important.”

Since 1984, Unifree DutyFree has been developing and sustaining its operations through new concessions, and now benefits from the knowledge of its partner Gebr. Heinemann – one of the largest duty free operators and logistics suppliers in the world – and its more than 135 years of experience in travel retail across the globe. Genç explained that Unifree DutyFree came forth with a multitude of ideas to maximise the airport’s commercial revenues while enhancing not only the shopping experience, but also the entire airport journey of Istanbul New Airport’s passengers. “That’s why I can say that, together with Unifree, we will introduce a duty free concept that will have many surprises,” he disclosed. “I can say that our offer is going to be ‘far from the cliché form of duty free’ with many new features, which will be well balanced in all tastes instead of a chaotic mixture of everything.”

It has so far been revealed that Istanbul New Airport’s 53,000sqm duty free area incorporate 6,500sqm of space dedicated to luxury boutique stores, while 3,000sqm will take the form of a traditional bazaar, where Turkish products will be introduced to the world. The intrinsic ‘fabric of Istanbul’ will be instilled throughout the commercial area’s design.

İGA Havalimanı İşletmesi A.Ş. has already collaborated with Unifree DutyFree and Gebr. Heinemann in the areas of space allocation and the design of the retail environment, and is presently holding monthly meetings in order to share experiences, insights, ideas and comments, and so each can make its input into to the design of retail, F&B areas, lounges and other aspects that will make Istanbul New Airport the best shopping environment and most preferred airport for passengers. It has so far been revealed that Istanbul New Airport’s 53,000sqm duty free area will comprise six sections; 6,500sqm will be dedicated to luxury boutique stores and 3,000sqm will take the form of a traditional bazaar, where Turkish products will be introduced to the world. Information areas will cover 500sqm, duty free shops will dominate 15,000sqm and activity and tasting stands 6,000sqm, while the arrival stores will commandeer 12,500sqm of the space. Together, Istanbul New Airport and Unifree DutyFree will create what Genç deemed “the world’s best shopping environment in worldwide travel retail”, in the place where civilisations meet. The commercial design of Istanbul New Airport’s retail project is in now in progress, and Genç told of how the most exclusive and thrilling aspect of this project is that it will be “the reflection of Istanbul’s Bosporus in retail design”.

“The classical duty free shops, luxury and niche boutiques, exclusive promotions, F&B areas and lounges will be integrated and harmonised within the flow of Bosporus,” he explained. “Along the Bosporus, a landscape will be characterised by the seven hills of Istanbul. The exciting topography of this landscape offers inspiration that is reflected inside the terminal. As a local environment and modern translation of Istanbul, the diversity of the retail area creates an experience that will keep customers attracted. With its topographical appearance, the terminal offers natural guidance and orientation. There will be big surprises for our customers.”

“Something for everyone, not just more of the same”

“Orient meets occident, tradition meets modern life, and urbanity meets nature,” Genç described. A favourable shopping experience full of surprises and featuring technologies of the future awaits customers in its shops, which will bring the world’s leading brands together under one roof. Special price offers, monthly changing promotions and exclusive brand offers will be the fundamental structure of the Istanbul New Airport retail environment. “Besides shopping, we will take into consideration all needs of our customers in order to fulfill their expectations, such as offering easily located F&B areas, and comfortable lounges,” he added. “We embrace the concept of ‘something for everyone, not just more of the same’ in order to provide a warm welcome by fulfilling our customers’ expectations.”

Mertol Genç, CEO, İGA Havalimanı İşletmesi A.Ş.: “I can say that our offer is going to be ‘far from the cliché form of duty free’ with many new features, which will be well balanced in all tastes instead of a chaotic mixture of everything.”

In his description of the calibre of the retail experience that Istanbul New Airport will create for its passengers, Genç laid down a clear-cut and carefully conceived strategy that will enable it to offer the best service to its visitors. At the centre of its offering will be monthly evolving special offers on certain products, podium activities, multi-buy offers, free tastings, WOW promotions, fashion shows, concerts, recent movies, GWPs, 3-D hologram activities – a world of activations and invention designed to increase purchaser penetration. “Furthermore we will present free personal care such as nail-care and hair-care, exclusive lounges where our customers can purchase products while they are relaxing, and free tasting lounges for all products,” he said.

In a contract win that German duty free leader Gebr. Heinemann dubbed “the greatest single success in the company’s history”, Unifree DutyFree, in which Gebr. Heinemann has a 60.8% stake will create the extraordinary world’s largest commercial area, and become, as a result, one of the biggest players of the Turkish and global travel retail sectors.

An exclusive lounge will boast premium products, with every category at passengers’ disposal, to create a relaxing and indulgent atmosphere. The Gamezone, meanwhile, is an area for entertainment and games for the young and young at heart. Passengers will be able to enjoy PlayStation and Xbox games, air hockey, football tables and shopping while waiting for their flights, with some games being launched for the first time at Istanbul New Airport.

In addition, for the first time in the world, Unifree DutyFree will equip the shops in Istanbul New Airport with the latest technologies in travel retailing. Passengers will be met with state-of-the-art concepts such as 3-D hologram systems, smart shopping carts with a charging function, and mobile cash registers. The ‘Magic Mirror’ application, meanwhile, will enable customers to see virtually how watches, sunglasses, accessories, clothes and make-up products will look on them without physically trying them on. Additionally, electronic customer profiling and analysis technology will allow the airport to trace customers’ shopping history and identify their possible future needs, this way offering them the most personalised products and services.

“Commercial revenues will play a crucial role in the overall business, and they will have the highest ratio,” Genç added. “We will aim to maximise their effectiveness through a wide range of product assortments attracting each segment, innovative marketing techniques, future technologies, customer-oriented CRM within effective digital social media and a walkthrough concept that will integrate duty free shops, F&B areas and lounges.”