General election in Thailand may influence AoT Board over King Power decision

Andrew Pentol

28-Aug-2007

A general election could stop AoT from removing King Power from Suvarnabhumi

The announcement of a general election in Thailand could influence Airports of Thailand (AoT) plans to remove duty-free operator King Power International Group from Bangkok Suvarnabhumi airport.

 

A new non-military-backed government is likely to change the pro-dictatorship members of the board and severely affect AoT’s position with regard to dismissing King Power, according to reports.

 

While King Power is continuing its lawsuit against AoT relating to its refusal to recognise the validity of its duty-free and commercial contracts, the AoT board is to establish a timetable for the operator to leave the airport.

 

AoT has indicated its intention to file for compensation unless King Power leaves the premises by the imposed deadline. It will also submit the findings of its investigation related to the contract award to King Power covering its operations at Suvarnabhumi and three other regional airports to the Minister of Transport. The results of the investigation will be passed to the National Counter-Corruption Commission and AoT will take legal action against all parties proven to have been involved in any wrong doing.

 

Meanwhile, King Power has responded to AoT’s plans to oust it from Suvarnabhumi with a memo outlining how the legal process works in Thailand.

 

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