BUSINESS

Shanghai Airport To Form JVs with New Duty-Free Operators

Published: Dec. 18, 2025 6:05 a.m. GMT+8

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Shanghai Pudong International Airport

Shanghai Airport (Group) Co. Ltd. on Wednesday said it and its subsidiaries have signed concession transfer agreements with the China unit of Avolta AG and state-owned China Duty Free Group Co. Ltd. (CDFG), and would establish joint ventures with each operator to run the duty-free stores.

Dufry (Shanghai) Commerce Co., the Chinese operations of Switzerland-based global travel retail giant Avolta, and CDFG secured the new round of duty-free concessions at Shanghai’s two airports, replacing the current operator, Sunrise Duty Free Shanghai Co. Ltd., after a dramatic bidding battle.

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Dufry (Avolta) and China Duty Free Group (CDFG) won new duty-free concessions at Shanghai’s airports, replacing Sunrise Duty Free after a public tender.
Dufry and CDFG will operate Pudong Airport duty-free shops under “3+5” and “5+3” year agreements (2026-2033), each providing a 150 million yuan performance bond.
Shanghai Airport will invest up to 98 million yuan to form joint ventures with Dufry and CDFG, holding a 49% stake in the Dufry JV.

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Who’s Who

Shanghai Airport (Group) Co. Ltd.: Shanghai Airport (Group) Co. Ltd. (SA) has signed concession transfer agreements with Avolta AG (China unit) and China Duty Free Group Co. Ltd. (CDFG). These agreements will establish joint ventures with each operator to run duty-free stores at Shanghai's airports, replacing the current operator. SA will hold a 49% stake in these joint ventures.

Avolta AG: Switzerland-based Avolta AG, a global travel retail giant, had its China unit, Dufry (Shanghai) Commerce Co., secure duty-free concessions at Shanghai Pudong International Airport. Dufry will operate inbound and outbound duty-free shops at Terminal 1 and S1 satellite hall from 2026 to 2033. Avolta will also form a joint venture with Shanghai Airport Group to operate this business.

China Duty Free Group Co. Ltd. (CDFG): China Duty Free Group Co. Ltd. (CDFG) secured duty-free concessions at Shanghai's Pudong International Airport Terminal 2 and S2 satellite hall, and at Shanghai Hongqiao International Airport. These concessions, running from 2026 to 2033, involve a "5+3" year structure and performance bonds totaling 180 million yuan. CDFG will establish a joint venture with Shanghai Airport to operate these stores.

Dufry (Shanghai) Commerce Co.: Dufry (Shanghai) Commerce Co. is the Chinese operation of Avolta, a Switzerland-based global travel retail giant. It secured new duty-free concessions at Shanghai's two airports, replacing Sunrise Duty Free Shanghai Co. Ltd. Dufry (Shanghai) Commerce will operate inbound and outbound duty-free shops at Shanghai Pudong International Airport’s Terminal 1 and S1 satellite hall.

Sunrise Duty Free Shanghai Co. Ltd.: Sunrise Duty Free Shanghai Co. Ltd. was the current operator of duty-free stores at Shanghai's two airports (Pudong and Hongqiao). However, after a recent bidding battle, this operator has been replaced by Avolta AG's China unit and China Duty Free Group Co. Ltd. Sunrise Duty Free failed to submit a qualified bid for the new concessions.

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What Happened When

Earlier December 2025：: Shanghai Airport launched the public tender for duty-free concessions at its two airports.

December 11, 2025：: Shanghai Airport announced Dufry and CDFG as the winning bidders for the duty-free concessions.

December 18, 2025：: Shanghai Airport (Group) Co. Ltd. disclosed the signing of concession transfer agreements with Avolta AG (Dufry) and China Duty Free Group (CDFG) and plans to establish joint ventures to operate the duty-free stores.

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