THAILAND. Airports of Thailand (AoT) has approved King Power International’s bid for the long-term contract to operate duty free stores at Don Mueang International Airport in Bangkok.
As reported, the contract will run from the beginning of October 2022 until the end of March 2033. The AoT Board met yesterday (23 December) to approve the selection of the concessionaire.
Both King Power and downtown mall operator The Mall Group had purchased the auction documents for THB 2.5 million (US$82,530), but only King Power ultimately submitted a bid.
King Power’s offer will see the retailer pay at least THB 1.5 billion (US$49.7 million) excluding VAT in the first year of its contract, an amount higher than what AoT expects to receive in the final year of the current duty free contract at the Bangkok airport.
AoT and King Power are expected to sign the contract in January 2020.
The approval of King Power’s bid for the Don Mueang contract rounds off a successful year of bids for the Thai retailer. The long-term operator of duty free shops at several of Thailand’s major airports this year faced tough international competition for its contract at Bangkok Suvarnabhumi, Chiang Mai, Hat Yai and Phuket airports.
King Power fought off competition there, including a Bangkok Airways/Lotte Duty Free alliance and and a partnership between Royal Orchid Sheraton (Thailand), Empire Asia Group and Dufry-owned World Duty Free Group to top the bidding for all four of these airports.
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