Aer Rianta International has been awarded a seven-year contract to operate duty-free shops at the new Terminal 3 in Moscow's Sheremetyevo Airport.
The shops are expected to generate gross sales of more than €1 billion over the term of the contract. More than 12 million people are expected to use Sheremetyevo's new terminal each year.
This would make it one of the largest contracts secured by Aer Rianta International, a wholly-owned subsidiary of the Dublin Airport Authority.
It has contracts for three Moscow airports - Domodedovo and Vnukovo are the other ones - and in St Petersburg. It has operated shops in Sheremetyevo airport for the past 20 years and has shops in its two other buildings.
Terminal 3 is due to open in October 2008.
Aer Rianta International won the contract in a competitive tender process. It was awarded by JSC Terminal, which is responsible for developing the new facility in Moscow.
Founded in 1988, Aer Rianta International is the largest airport retailer in Russia, having been the first company to operate duty-free shops in the country.
It employs about 1,000 people across the three Moscow airports, including 20 Irish staff.
It will operate 2,200 sq metres of retailing space in the duty-free area of Terminal 3 where it will have eight duty-free stores. It has also signed a seven-year contract to operate two duty-paid stores at the terminal's domestic gates.
Aer Rianta International secured the management contract to handle advertising for Terminal 3 earlier this year.
In addition to its retailing operations, it also holds minority shareholdings in Dusseldorf airport in Germany and in Paphos and Larnaca airports in Cyprus.
"This is an exciting time for the aviation industry in Russia," said Eamon Foley, Aer Rianta International director general. "Air travel for business and leisure purposes is growing rapidly in Russia."
Aer Rianta International made a profit contribution of €19.5 million to the Dublin Airport Authority in 2006, an increase of 12 per cent on the previous year. It included an exceptional gain of €2.7 million on the sale of its interest in Hamburg Airport.
It also has retail operations in Canada, the United States, the Middle East, north Africa, Ukraine and Kosovo.
