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We Won’t Cancel King Power Contract, Says AoT President
12th May 2017
Thailand’s largest duty-free operator King Power Group will, for the time being at least, keep its spot as the sole concessionaire at two of the biggest airports in the country – Suvarnabhumi and Don Muang. Airports of Thailand (AoT) President Nitinai Sirismatthakarn denied reports that the contract with King Power might be axed or that he will be removed from office if this doesn’t happen.
According to Mr. Nitinai, there was a proposal, made by the National Reform Steering Assembly (NRSA), made at a meeting on 25th April, but that was it.
The meeting was chaired by Thai Deputy Prime Minister Wissanu Kreangam. The purpose of the meeting was to discuss the question that the State Audit Commission posed to the AoT about its plan to allow other duty-free operators to rent space at the Suvarnabhumi Airport.
The AoT has by the end of May to provide an answer.
Apart from the Deputy PM, AoT and NSRA representatives, the Transport Ministry, Office of the Auditor-General, the Customs Department, the Public Sector Anti-Corruption Commission and the Revenue Department also sent their people to the meeting.
The NSRA made five proposals at the meeting and one of them was to dismiss Mr. Nitinai as the AoT president and to revoke the contract with the King Power. But, as the Deputy PM only wanted to hear the opinions of those present at the meeting, the proposal was never made official.
The current contract King Power has for Suvarnabhumi is until 27th September, 2020 and for Don Muang until 30th September, 2022. This means that, at least by those dates, any duty-free companies looking to use space at Suvarnabhumi will have to go through King Power, said Mr. Nitinai.
The AoT however, adds its president, is planning to call a bid to select a new operator for the duty-free shots and the commercial space at Suvarnabhumi before the King Power’s contract expires and will do it late this year.
Finally, Mr. Wissanu himself dismissed the reports that he will act on the NSRA committee’s suggestion and sack the AoT president. He will report the outcome of the meeting to the Prime Minister Prayut Chan-o-cha.
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