AoT to dethrone King Power

Andrew Pentol

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Duty-free operator has been ordered to leave Suvarnabhumi airport

The Airports of Thailand (AoT) board has ordered duty-free operator King Power International Group (Thailand) to leave Bangkok Suvarnabhumi airport after a fresh investigation revealed that its contract was signed without approval from the government.

This follows months of indecision before and after King Power launched a Bt70bn ($2.1bn) lawsuit against AoT last June after the retail operator’s two contracts were not ratified in law. AoT spokesman Chirmsak Pinthong is reported to have told local press that the order to move the operator out of the airport has been approved based on earlier allegations by the present AoT board that the previous pre-military coup Thai administration had awarded the two 10-year contracts to King Power without due legal process.

According to reports, the decision to request King Power’s departure was unanimously agreed by the AoT board, which will approach the National Counter-Corruption Commission to examine whether there is a case to answer by both present and past board members in the award process of the original duty-free and commercial contracts. AoT has indicated a new tender should be called.

King Power’s lawsuit is to begin its preliminary hearings in the civil court next month.