File photo for reference only

 

The Airports of Thailand (AOT) board has approved a contract amendment with King Power, maintaining the Minimum Guarantee and increasing Revenue Sharing percentages for its duty-free operations at five airports, including Suvarnabhumi and Don Mueang. This decision will extend King Power's duty-free contract, ensuring business continuity amidst ongoing developments. The amended contract aligns with AOT's strategy to safeguard services and revenue while supporting future airport upgrades.

 

The AOT made this resolution during its December 2, 2025 meeting, following recommendations by a working group evaluating the duty-free operations. The choice to amend the contract over termination and re-bidding was guided by the need to maintain service continuity and enhance economic benefits. A contract termination could have led to a revenue gap as finding a new operator might take 14 months.

 

Experts suggest that keeping King Power as the operator supports AOT's strategy of economic stability, even in turbulent times. The agreement allows AOT to receive a consistent income stream, thus avoiding possible disruptions. This measure is also anticipated to support the employment rates within associated businesses and maintain AOT services at international standards.

 

Looking forward, AOT plans to use these changes to sustain and possibly improve revenue. By increasing revenue share to 35% for exceeding thresholds at Suvarnabhumi and maintaining a 20% revenue share at Don Mueang, AOT sets conditions for potential growth. A keen focus remains on addressing necessary renovations, such as the South Terminal construction at Suvarnabhumi, scheduled for completion by 2032, reported The Nation.

 

Key Takeaways

• The AOT continues duty-free contracts to maintain consistent revenue.
• A contract amendment prevents revenue losses and supports economic stability.
• Airport development plans are aligned with extended contract terms.

 

Related stories:

AOT Set to Accept King Power Terms to Prevent Contract Fallout

Duty-Free Giant King Power Closes Shops in Bangkok and Pattaya

 

  Adapted by ASEAN Now from The Nation 2025-12-03

 

 

 

So the tradition of 'duty free' costing more than high Street pricing will continue.