January 13 2025  |  Airlines & Airports

Israel Airports Authority launches tender for for Ben Gurion VIP lounges

By Wendy Morley

The Israel Airports Authority (IAA) has launched an international tender for the management and operation of up to five VIP lounges in Terminal 3 at Ben Gurion International Airport, currently operated by Dan Hotels and ground handler QAS Ltd.

The tender invites bids from local and international hotel chains, airlines, airline alliances and VIP lounge operators that manage at least five lounges globally. Joint ventures are permitted, with the requirement that the lead partner holds a minimum 75.1% stake and meets the operational criteria. Additional partners may hold up to 24.9% collectively.

The lounges serve first and business class passengers, frequent flyer program members and pay-per-use customers. The IAA plans to award contracts to up to two operators to enhance competition and operational flexibility. The highest-scoring bidder will have first choice of lounge locations.

The facilities are divided into two groups: Area A comprises two departure lounges in Concourses E and B plus the Arbel arrival lounge, while Area B includes a departure lounge in Concourse C and the Small Rotunda lounge. Winners may designate up to 50% of their space for exclusive airline use.

The six-year contracts, which may be extended by up to 36 months, include a renovation period with new openings scheduled for June 2025. Operators must provide refreshments, business services and meeting facilities.

The tender reflects strong growth in the airport lounge sector, with global revenue projected to rise from US$4.21 billion in 2024 to US$9.44 billion by 2029. At Ben Gurion, lounge revenues exceeded 60 million NIS (US$16.2 million) in 2023. The airport served 21 million passengers last year, with traffic expected to reach 30 million by 2030.

Bid registration closes February 11 2025, with final submissions due March 2 2025. Tender documents are available on the IAA website.

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