King Power, The Mall Win Don Mueang Deals

[webfact]

King Power, The Mall win Don Mueang deals

Nongnapas Maipanich

The Nation

BANGKOK: -- King Power Duty Free Co and The Mall Group have won concessions to operate commercial space at Don Mueang Airport, in exchange for annual returns of Bt900 million to Airports of Thailand.

After the AOT board of directors meeting yesterday, the agency's president Aniruth Thanomkulbut revealed that King Power would operate a 1,100-square-metre duty-free shop under a 10-year contract that will see AOT reap monthly revenue of Bt63 million, or Bt756 million per annum.

Meanwhile, The Mall Group was also awarded a 10-year contract to operate a food and drink business in a 2,700sqm area. AOT will reap Bt16.7 million a month or about Bt200 million annually from the deal.

Both companies can immediately start construction work, without having to wait for the contracts to be signed, Aniruth said. "We want the facilities to be ready before October 1."

On that date, Don Mueang Airport will be officially reopened for international flights. Thai AirAsia will be the first airline to operate international flights to and from Don Mueang.

Under the commercial contracts, revenue is expected to increase by 10 per cent per annum.

"The board thoroughly considered the proposals. King Power and The Mall Group offered the best returns and are able to deliver the services. Meanwhile, we have a working committee to oversee the private players' operations," he said.

Earlier, there were concerns that King Power had exaggerated its bid and AOT might not reap as much as proposed. Central Retail Corp also bid to operate the duty-free shop.

King Power, which currently operates a duty-free shop at Suvarnabhumi Airport, operated one under AOT contract at Don Mueang for years before the airport was closed in 2006.

-- The Nation 2012-09-11

[scotbeve]

Did anyone think another "company" would get the contract????

[Asianrider]

Did anyone think another "company" would get the contract????

+1

[phuketrichard]

nothing new here. Look for overpriced food at restaurants an overpriced goods in their shops and abusing assigned floor space

[Baerboxer]

Did anyone think another "company" would get the contract????

No

[belg]

nice to see they can predict how much tourists will spend in their shops

maybe it includes the hefty fines when a farang accidently leaves the unvisible barrier zone and have to pay up a lump som or face the police

[BWPattaya]

Whenever I have copared the prices in King Power with items on sale in non-duty free shops I have always found them more expensive. Therefore I have never bought anything in King Power. I don't even look in there these days. Perhaps cigarettes are cheaper but I don't buy them.

[maidu]

King power also are brokers for credit cards. I made the mistake of getting a c.card with them. There have been some glitches. It's nearly impossible to get someone to answer the phone. You're lucky if it's just 25 minutes. Today, I waited nearly an hour. no answer. They said they would mail something to my bank. They didn't. Currently they owe me (Bt.3,400 for a charge-back). That's probably why they won't deal responsibly with me (plus, they're Thais, go figure). They likely hope I'll give up dealing with them, so they can keep the 3,400 baht.

I mailed them a letter. No response. Once, when I got someone on the phone, I asked if I could come to their office in Bkk to straighten things out. They said 'no'. I said 'why not' they said they have no office. Maidu's question: how can such seedy characters do business in Thailand or anywhere?

Edited September 11, 2012 by maidu

[thailandsam]

King Power would rather lose money than let another operator get a foot in the door with cheaper prices.

I have just bought a Nikon camera in Pattaya with memory cards for 28000 baht I asked the price at King Power at Suvarnabhumi and was quoted the same price and that was Duty Free. Amazing Thailand.

[mmushr00m]

King Power will pay AOT B63 million per month. That's $2 million per month from ONE store. Seems highly unlikely, I would love to see their revenue projection reports.

[Thaiwine]

They should have let both companies have floor space

double the money paid to AOT

and more choice for the consumer

[siampreggers]

US$65,000 a day in rents...

Wonder how much without all the skimming.