Ms. Paweena Jariyathitipong, Senior Executive Vice President of Engineering and Construction, and Acting President of Airports of Thailand Public Company Limited (SET: AOT), informed “Kaohoon” that negotiations with King Power Corporation Co., Ltd. have been concluded regarding the amendment of the duty-free concession agreements for Suvarnabhumi Airport and Don Mueang Airport.
The next step is expected to see AOT present the negotiation results to relevant committees, such as the AOT Revenue Committee. If there are no objections, the matter will be presented at the AOT Board meeting for consideration on November 26, 2025.
The main amendment reached through negotiations involves the primary duty-free concession at Suvarnabhumi Airport. Both parties have agreed to continue using the same revenue sharing rate of 20% of that month’s gross revenue before expenses.
As for the sharing per head, it will be calculated according to the actual number of passengers. Therefore, the annual minimum guarantee King Power once quoted as THB 15.41 billion, or THB 371 per head in 2020, will no longer be applicable. The new rate cannot yet be disclosed, as it depends on whether AOT accepts the rate proposed by King Power.
Mr. Phiphat Ratchakitprakarn, Deputy Prime Minister and Minister of Transport, stated that he has received a report from AOT regarding the King Power case. He initially agrees with AOT’s negotiation approach, as it benefits both parties more than contract termination, which would result in an immediate loss of revenue for AOT. Income from King Power accounts for about 17% of total revenue, which is a significant amount.
Back at the end of May 2025, King Power Duty Free Co., Ltd. (KPD), a subsidiary of King Power Corporation, sent a letter to the AOT President to discuss terminating three duty-free concession agreements, citing several major factors significantly affecting the business, all of which were beyond their control.
Lower tourist arrivals, coupled with other reasons, caused KPD to incur losses from unusually high concession fees that no longer correspond to actual circumstances, resulting in KPD having to continuously defer payment obligations. These impactful events are considered force majeure and not due to any fault or action by KPD.
It was also confirmed that, based on AOT’s current international passenger numbers, if the contract with King Power were terminated and a new tender launched, the return would not be as high as what King Power is offering in the revised terms.
Regarding the duty-free concession agreements at Phuket, Chiang Mai, and Hat Yai airports, it is expected that AOT will present these to the board as the next case after the two completed negotiations are approved.
