File photo courtesy of King Power

 

King Power Duty Free Company Limited (KPD) has formally requested a cancellation of its duty-free concession contracts with Airports of Thailand (AOT). This move affects key airports, including Suvarnabhumi, Don Mueang, Phuket, Chiang Mai, and Hat Yai, and rocked the market as AOT's stock nosedived by 8.40% following the announcement.

 

AOT swiftly convened a board meeting on June 16 and announced the formation of a task force to navigate this business challenge.

 

Acting CEO Paveena Jariyathitipong stated that the board is consulting with university experts to explore legal and economic alternatives, set to conclude their study by August 2025. AOT relies heavily on revenue from King Power, which constitutes 17% of its total earnings, so the company is pushing forward with plans to diversify its income streams to buffer against this shift.

 

Despite the disruptions, Thibodi Wattanakul from the State Enterprise Policy Office remains hopeful that any lost revenue due to duty-free concessions could be mitigated if AOT secures new tenants.

 

Approximately 3 billion baht (about £70 million) annually is at stake from these contracts, with a significant portion linked to Suvarnabhumi Airport. The Ministry of Finance, a stakeholder in AOT, is keenly observing the situation as both parties adhere to contractual rules, including penalties if termination proceeds.

 

The timing of this cancellation request follows the appointment of King Power's new CEO, Nitinai Sirisarntkarn, who has oversight experience having served as AOT’s CEO for eight years.

 

King Power cites declining tourist numbers and reduced tax incentives as primary triggers for their decision. They propose a transitional concession-fee arrangement during renegotiations, emphasising that their operations have become untenable due to factors like COVID-19 and global economic slowdowns.

 

With KPD's current contract with AOT valid until March 2033, the pressure is on both companies to reach a resolution within the 45-days negotiation window set by KPD.

 

However, AOT remains unmoved financially by these developments if they can swiftly find replacement partners to fill the commercial void left by King Power. The discussions set for June 17 will be crucial in paving the way forward in this unfolding business saga.

 

  Adapted by ASEAN Now from Khaosod 2025-06-17

 

 

4 minutes ago, webfact said:

King Power Duty Free Company Limited (KPD) has formally requested a cancellation of its duty-free concession contracts with Airports of Thailand (AOT).

 

It should be called non duty-free.

People have woken up that duty free is a scam maybe with the rents they pay it can't be cheap 

The move is probably based on excessive rental, AOT thought they have a captive audience and are screwing king power on prices.

As as being duty-free a lot of their stuff is no cheaper than outside the airport. 

When a monopoly in their favor created a mono-boring shopping experience across all the KP shops , it was good for business.   Now this move isn't about what is being said , really,  it's about a new business plan in which KP or a subsidiary will make out like bandits.  Or as I like to say , Let the games begin ..

Good to hear.. Hopefully the new duty free shop will be really duty free instead of being more expensive than other airports or even the shops in the country... The greed have brought them down... and than we don't speak about the possibility of counterfeit products that once were sold by King Power...

Back in the day, KP demanded the monopoly in Thai airports and AOT obliged....obviously a lot of money changed hands.

I don't know of any enterprise here that could successfully take over this businesses departure......but whatever,KP have had their day ripping people for age "duty free" products

22 hours ago, watchcat said:

 

It should be called non duty-free.

Selfridge's prices since Central company owns that also. 

Good. It’s a total rip off and a big shake up is needed. Years ago you could get actual deals, but they only have such a turnover now because there’s no other real option, plus people are stupid. If I want actual no duty, I’ll get it on the way back. 

23 hours ago, watchcat said:

 

It should be called non duty-free.

Indeed, most of the stuff they sell can be bought in normal shops for half the price.

22 hours ago, Artisi said:

The move is probably based on excessive rental, AOT thought they have a captive audience and are screwing king power on prices.

As as being duty-free a lot of their stuff is no cheaper than outside the airport. 

In fact, it's usually more

23 hours ago, webfact said:

 

The timing of this cancellation request follows the appointment of King Power's new CEO, Nitinai Sirisarntkarn, who has oversight experience having served as AOT’s CEO for eight years.

 

Nice move ... 

On 6/17/2025 at 9:06 AM, webfact said:

King Power Duty Free Company Limited (KPD) has formally requested a cancellation of its duty-free concession contracts

 

IMO great news. Now we will not see Leicester City Football Club and Jamie Vardy plastered over the duty free shop windows!

Once they removed the duty free on arrival capabilities, this was inevitable. Lots of money lost from that. 

I remember when they got the contract people were calling foul, now they want out? Let them go, they won't be missed.

22 hours ago, ChrisY1 said:

Back in the day, KP demanded the monopoly in Thai airports and AOT obliged....obviously a lot of money changed hands.

I don't know of any enterprise here that could successfully take over this businesses departure......but whatever,KP have had their day ripping people for age "duty free" products

Maybe CP group will diversify ?

I was able to buy the latest ( girl) perfume boarding from a small island duty free shop. Just checking on arrival in Suv  found only the old one was on sale. 

Not only high prices but poor choice.

On 6/17/2025 at 9:06 AM, webfact said:

King Power Duty Free Company Limited (KPD) has formally requested a cancellation of its duty-free concession contracts with Airports of Thailand (AOT)

Where are they going to go? 7-Eleven?

On 6/17/2025 at 9:41 AM, ozz1 said:

People have woken up that duty free is a scam maybe with the rents they pay it can't be cheap 

They all rent their location indirectly from the Thai government, after all they own the airports, and not just in LOS, let's face it, all over the world is so-called “Duty Free” scams.

The Chinese have woken up to them, the Indians knew straight away, and the rest realised it was a scam quickly. AOT will hopefully open smaller shops and reduced rentals, who will actually offer products at a discount - like those in the  Singapore Airport do.  But being Thailand - they will screw up what should be a simple solution to an ongoing problem that has existed for many years.  

Just now, Peterphuket said:

They all rent their location indirectly from the Thai government, after all they own the airports, and not just in LOS, let's face it, all over the world is so-called “Duty Free” scams.

Not in Singapore - bargains are there to be had - well they were the last time we flew in and out in 2023 and all the years before that. 

Recently I was at Suvarnabhumi, waiting for my flight I wanted to have a glass of wine....400 Thb for a glass.

14 minutes ago, Peterphuket said:

Recently I was at Suvarnabhumi, waiting for my flight I wanted to have a glass of wine....400 Thb for a glass.

 

King Power operates outlets that sell wine by the glass ?

25 minutes ago, Ralf001 said:

 

King Power operates outlets that sell wine by the glass ?

Restaurants of course.

But as far as I know, also owned by King Power.

Large Toblerone KP £4, Morrisons UK today price £3. Duty free my ar#e. 🤣😂😡

3 hours ago, gargamon said:

Once they removed the duty free on arrival capabilities, this was inevitable. Lots of money lost from that. 

I miss that.

Unless King Power is intending to go into a completely different direction - like retail, shopping centers or hotels - I don't see the logic. Without the duty free on arrival though, I can understand why they might want to renegotiate the contract and leases. So this might just be a bargaining ploy. Real duty free would involve opening the airports up to several duty free competitors (e.g. not a one player monopoly). 

On 6/17/2025 at 9:41 AM, ozz1 said:

People have woken up that duty free is a scam maybe with the rents they pay it can't be cheap 

 

And the Foxes getting relegated twice simply revealed their other scam.

6 hours ago, arick said:

Selfridge's prices since Central company owns that also. 

CP are diversifying!