CHRISTCHURCH INTERNATIONAL AIRPORT LIMITED (CIAL) EXPRESSIONS OF INTEREST (EOI) FOR THE SALE OF TRAVEL INSURANCE AT CHRISTCHURCH INTERNATIONAL AIRPORT

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1 CHRISTCHURCH INTERNATIONAL AIRPORT LIMITED (CIAL) EXPRESSIONS OF INTEREST (EOI) FOR THE SALE OF TRAVEL INSURANCE AT CHRISTCHURCH INTERNATIONAL AIRPORT This document describes Christchurch International Airport Limited s ( CIAL ) concept for a travel insurance provider at Christchurch International Airport. It does not amount to an offer, but is intended to form the basis of discussions between travel insurance providers and CIAL.

2 PART 1 INTRODUCTION AND GENERAL INFORMATION 1. BACKGROUND 1.1 This Expression of Interest (EOI) is a market research tool used to assist us in such areas as : determining the range of possible products or solutions available; clarifying business requirements; identifying and assessing project and procurement risks; and, assessing potential project and procurement costs. 1.2 It is not intended that this EOI will result in a contract award, nor will it be used to exclude or pre-qualify respondents. We reserve the right to decline: any or all respondents; and to enter into future correspondence This EOI is the first stage in a two-stage procurement process. Its primary use is as a short listing tool to reduce the number of interested suppliers in order to minimise costs to both CIAL and the Supplier. The second stage of this process will be the issuing of an Request For Proposal (RFP) to the shortlisted Suppliers. 2. OUR REQUIREMENTS Christchurch International Airport Limited (CIAL) is the owner and operator of Christchurch International Airport. It is interested in entering into a commercial arrangement with a credible and recognised travel insurance provider (or reseller) to offer a variety of travel insurance products for sale to the public at one or more of the Christchurch International Airport Terminal, Christchurch International Airport isite tourist information centre, its website and other associated sales channels. In entering into such an arrangement, CIAL s dual goals are to: Increase its commercial revenues through non-aeronautical sources; Provide a complete travel and airport experience to the public. 2.2 CIAL believes there is market demand for insurance products for: (c) (d) Outbound international travellers, whether departing internationally from Christchurch or departing domestically for an international connection at another New Zealand airport; Outbound domestic travellers; Inbound international travellers; and Inbound domestic travellers. 2.3 In additional to traditional travel insurance products for the above market segments, CIAL believes there is a market opportunity for non-traditional or new products, including rental vehicle excess buy-outs and other rental vehicle insurances.

3 2.4 Interested parties should feel free to present opportunities to work with CIAL in areas other than insurance and travel related insurance as part of their expression of interest. 2.5 While this Request for Expressions of Interest relates to sales and promotional channels at Christchurch International Airport, CIAL believes there is a market for travel insurance sales at all New Zealand airports and nothing in this document should limit interested parties to considering only opportunities to work together at Christchurch International Airport. That is, CIAL may be interested in an arrangement that involves the sale of insurance products at other airports and related sites throughout New Zealand either immediately or in the medium-term. 2.6 Christchurch is serviced by both low-cost and premium carriers such as Air New Zealand, Jetstar, Virgin Airlines, Singapore Airlines and Emirates. 2.7 Approxiamate passenger movements for calendar year 2011 are: Departures International Direct 720,000 International, by connection through another NZ airport 300,000 Total International Departures 1,020,000 Domestic 1,800,000 Total Departures 2,820,000 Arrivals International Direct 710,000 Domestic (incl international connections from other NZ airports) 2,060,000 Total Arrivals 2,770,000 Total Passenger Movements 5,590, The number of international passengers through the airport, particularly from Australia, fell following the February 2011 earthquakes. However, travel by New Zealand residents (a key market for outbound travel insurance products) increased compared to the year prior. 2.9 The table below shows the nationality of international direct departing passengers for calendar year 2011: New Zealand 40% Australia 23% United Kingdom 8% United States 3% Other Nationalities 26% Nationality information for domestic and international connecting passengers is not recorded.

4 2.10 While CIAL is forecasting (and actively working to achieve) significant increases in passenger numbers in the next few years, respondents are explicitly instructed to make their own investigations and forecasts of future demand and should not rely in any way on statements made by CIAL in that regard when preparing Expressions of Interest. 3. SALES & PROMOTIONAL CHANNELS 3.1 CIAL is interested in exploring the possibility of making some or all of the following sales and promotional channels available on a non-exclusive basis to a travel insurance provider, depending on the provider s preferred methods of operating and CIAL s operational and other commercial requirements. Sales locations and channels will be agreed with any insurance provider selected and CIAL makes no representation that all or any of these channels will be made available to an insurance provider. Small electronic self-serve sales kiosks within the airport terminal, including some or all of the following areas: Integrated check-in hall Integrated food hall and public farewelling area International departures lounge Domestic departures lounge Integrated arrivals hall isite tourist information centre; Christchurch airport website and mobile website (c) (d) (e) Car park pre-booking website (in development); isite face to face sales; Landing page/access page of the public wifi network within the terminal; 4. INFORMATION REQUIRED AS PART OF YOUR EXPRESSION OF INTEREST 4.1 CIAL requires: Details of proposed products, including pricing, features and benefits.

5 5. TIMETABLE 5.1 The anticipated timetable for this two stage procurement process: Request for Expressions of Interest issued (this document) 11 May 2012 Closing date and time for Expressions of Interest to CIAL 3pm 25 May 2012 (c) Evaluation of EOI responses May 2012 (d) Notification to Unsuccessful and Succuessful shortlisted Suppliers 30 May 2012 (e) Issue of Full Request for Proposal (RFP) to successful shortlisted suppliers 31 May 2012 (f) Closing date and time for the RFP 3pm 8 June 2012 (g) Evaluation of RFP responses June 2012 (h) Notification to Unsuccessful and Succuessful suppliers 14 June 2012 (i) Please send all submissions by the required closing date to the address below: 6. FURTHER INFORMATION 6.1 For further information please contact: Rob Hughes Procurement Manager Christchurch International Airport Limited PO Box Phone: (03) Mobile: rob.hughes@cial.co.nz

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