King Power wins contract to operate duty free shops at Thailand’s airports
The board of Airports of Thailand (AOT) today endorsed the bid committee’s decision to award the contracts to operate duty free shops at Suvarnabhumi International, Phuket, Chiang Mai and Hat Yai airports, and to manage commercial areas at Suvarnabhumi International airport, to King Power Duty Free Company.
AOT managing director Mr. Nitinai Sirismatthakarn said today that King Power Duty Free Company offered AOT minimum returns amounting to 15.4 billion baht (excluding VAT) to operate duty free shops at Suvarnabhumi for ten years and six months from September 28th, 2020 until March 31st, 2031.
King Power scored 94.30 points, outbidding the two other bidders, a joint venture between Bangkok Airways and Lotte Duty Free which offered minimum returns of 8.5 billion baht and Royal Orchid hotel group which offered minimum returns of 7.25 billion baht.
King Power also offered 2.331 billion baht (excluding VAT) to operate duty free shops at the three provincial airports for the same period, while the other same two bidders offered 2.012 billion baht and 2.108 billion baht respectively.
Regarding the commercial areas at Suvarnabhumi international airport, King Power offered minimum returns of 5.79 billion baht on the condition that the retail prices of food and drinks must be capped at 20% above market prices to prevent profiteering.
The other bidder, Central Pattana, offered minimum returns of about 3 billion baht.
Mr. Nitinai said that AOT has the right to adjust the annual minimum returns in line with the inflation rate as defined by the Commerce Ministry and the annual growth of passenger arrivals throughout the contractual period.