Westfield Concession Management has been awarded a 17 year concession to develop, lease and manage food-and-beverage, retail, specialty retail and other passenger services at Los Angeles International Airport (LAX).

The contract, which consists of a two-year development period and a 15-year operational period, is expected to generate a total of $331.1 million in terms of revenue for Los Angeles World Airports (LAWA), and will cover concessions in the gateway’s international terminals as well as the iconic Theme Building.

Westfield and its concessionaires are required to invest at least $81.9 million in initial improvements and $16.4 million in mid-term refurbishment improvements to the existing Tom Bradley International Terminal (TBIT), the new TBIT which is currently under construction, Terminal 2, and the airport’s Theme Building. 

The agreement covers a minimum of 84,261sqft of concession area.

Gina Marie Lindsey, executive director at LAWA, said: “Los Angeles World Airports is undertaking a $4.11-billion modernisation programme at LAX to improve customer service, safety and security.

“A major focus of our customer service improvements is to create a cohesive, memorable and high-quality dining and shopping experience with a variety of new and innovative options that offer a ‘sense of place’ reflecting the Los Angeles region.

“Our selection of Westfield Concessions Management will allow us to meet the demands of today’s travelers for quality dining, shopping and other services in a timely, cost-effective manner.”

As part of the contract, Westfield is required to select the concessionaires, subject to LAWA approval, as well as design, develop and oversee the construction of the concession spaces.

The company is also required to market and promote the concessions, negotiate and administer contracts with each concessionaire, and monitor and manage their performance. 

In particular, the agreement calls for Westfield to place a high priority on developing areas critical to the opening of the Great Hall/Core and West Gates of the New Tom Bradley International Terminal – a total 1.3 million square feet – scheduled for spring 2013.   

This is the first time LAWA has adopted a Terminal Commercial Manager business model and Westfield was selected from a choice of three proposers following the release of a Request for Proposals in May 2011.

Elsewhere, the Board of Airport Commissioners has also approved a conditional, five-month professional services contract valued at $350,000 to Westfield to develop a conceptual design for concessions critical to the opening of the New Tom Bradley International Terminal areas.