Sponsor Statement for SB 125

An Act relating to the extension of contracts for the sale and delivery of in-bond merchandise at international airports

SB 125 is a rather simple and straight forward bill designed to give DOT/PF the flexibility, should it be deemed to be in the state's interest, to extend the term of the duty free concession at the Anchorage International Airport. This legislation does not require nor mandate DOT/PF to take any action whatsoever; rather, it simply provides the tools and flexibility that may be necessary to maintain or improve the competitive position of the airport in the marketplace.

Anchorage International Airport's duty free/general merchandise concession at one time generated revenues in excess of $100 million and fees to the state approaching $19 million annually. Unfortunately, because of the opening of Soviet air space and a new generation of long-haul jets, the market has drastically declined and with it the revenues and subsequent fees to the state.

Now, for the good news. The incombent concessionaire, a group of Alaskans known as the David Green Group, have almost doubled revenues in their first year and are equally optimistic in their second year of operations.