The Nuance Group has announced that it will not be submitting a tender for the duty free concession at Cairns Airport (CAPL).
In a statement the group said that “after serious consideration” it would not submit a tender to continue to operate the duty free concession at the gateway, which it has held for the last 14 years.
The group said that the decision was based on the “long-term sustainably” of the concession contract.
It said: “Clearly, this decision has not been taken lightly, and whilst the company has enjoyed a long and fruitful relationship with CAPL, it has taken a realistic view on the long-term sustainability of this operation, given the required level of future investment balanced against the current tender expectations.”
Nuance will continue to operate the duty free area of the airport until 1 March 2012, at which time the group said it would work with CAPL and the incoming operator to “ensure a smooth and efficient handover of the business”.
Nuance added: “We genuinely regret the impact this decision may have on our loyal and committed workforce, and will seek to do all we can to support them during the transition period.”
The Nuance Group currently operates more than 370 outlets across 56 airports in 17 countries worldwide.
In Australia, the group has operated a concession at Cairns Airport since 1997 and currently provides 930sqm of retail space comprising of an arrivals and departures tax and duty free store.
It also runs airport retail operations at Sydney, Melbourne, Perth and Brisbane in addition to a consular outlet in Canberra.
Last year, Nuance launched of one of the world’s biggest duty free stores – 4,000sqm of retail space – at Sydney Airport, as well as unveiling a new walk-through First Tax Free & Duty Free store at Melbourne.