Picture courtesy of Khaosod

 

Airports of Thailand PCL (AOT) is expected to accept revised concession terms proposed by King Power Group to avoid the costly termination of duty-free contracts at Thailand’s major airports. The move aims to prevent disruptions in operations at Suvarnabhumi, Phuket, Chiang Mai and Hat Yai airports, where King Power manages duty-free outlets under long-term agreements.

 

King Power, Thailand’s largest duty-free operator, submitted a letter to AOT in May seeking to terminate its contracts early. These agreements, held by Power Duty Free Co., Ltd., are valid through 31 March 2033. Following the request, AOT commissioned Mahidol University and King Mongkut’s Institute of Technology Ladkrabang to assess the economic impact of termination versus renegotiation. Both institutions concluded that continuing the contracts under revised terms would provide greater benefit to AOT.

 

At its 29 October meeting, AOT’s board authorised management to enter negotiations with King Power to prevent termination. King Power CEO Nitinai Sirismatthakarn told Prachachat Business that AOT had likely reviewed the company’s seven key proposals and was expected to begin talks this week. “King Power hopes AOT will treat our proposals with fairness and consider the new economic context rather than past figures,” Nitinai said, adding that the goal is to ensure future revenues remain viable.

 

He said King Power hopes to finalise an agreement by the end of November, noting that continued losses would be unsustainable. “If revenue can at least cover costs, we can continue operating,” he said. “AOT’s decision to negotiate shows its intention to help concessionaires move forward.”

 

King Power secured three major duty-free concessions in 2019 with a total minimum annual guarantee of 23.55 billion baht in the first year. These included Suvarnabhumi Airport Duty-Free worth 15.42 billion baht, regional airports valued at 2.33 billion baht and Suvarnabhumi terminal commercial activities worth 5.8 billion baht. In 2024, AOT reported 18 billion baht in earnings from King Power, representing about 27% of its total revenue.

 

A retail industry source told Prachachat Business that AOT is expected to accept King Power’s terms, warning that termination could cost AOT around 20 billion baht in annual revenue. Launching a new tender process could take up to two years, potentially leaving Thailand’s main airports without duty-free shops or restaurants, a scenario that would be unprecedented globally and damaging to both tourism and the wider economy.

 

 

Key Takeaways

 

• AOT is likely to accept King Power’s revised duty-free terms to avoid major revenue losses.

• Studies by Mahidol University and KMITL found renegotiation more beneficial than contract termination.

• Losing King Power’s operations could leave airports without duty-free shops for up to two years.

 

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  Adapted  by  Asean  Now from Amarin 2025-11-08

 

 

 

 

 

 

King power once known for their fake parfums selling at the airport

On 11/8/2025 at 5:40 PM, ikke1959 said:

King power once known for their fake parfums selling at the airport

Not sure about the fake but expensive and outdated does it for me !

But will they reinstitute the Duty Free on Arrival shops? For alcohol at least the prices used to be better than in town; my opinion on them closing the Arrival shops earlier this year would just be considered Thai-bashing, so I'll refrain.