Paweena Jariyathitipong, President of Airports of Thailand Public Company Limited (SET: AOT), revealed that AOT is currently studying the feasibility of reopening inbound duty-free stores to offer more choices and greater convenience for passengers arriving in the country, after suspending such activities since August 2024.
At the same time, to improve service efficiency alongside increasing revenue, AOT is considering introducing premium service options. These special service channels, adopted by leading global airports, aim to provide passengers with enhanced convenience and faster processes while also helping to better manage and reduce congestion inside terminal buildings. Additionally, AOT will further develop strategies for managing aircraft parking bays to accommodate an increasing number of flights.
Furthermore, AOT continues to develop its commercial areas surrounding its airports by inviting private sector partners with expertise in the field to invest, thereby boosting long-term revenue. Current developments have boosted income through activities such as leasing additional plots for the Suvarnabhumi Airport service and business support center, expanding car parking at Chiang Mai Airport, and developing a plot on Wat Sriwaree Noi Road near Suvarnabhumi Airport.
Currently, 3 – 4 private companies have expressed interest in investing in this area, mostly from the logistics, cargo transport, and warehouse management sectors that can efficiently connect land, sea, and air transportation systems. This development is expected to cut export and import process times for air cargo to just three hours once launched.
On July 30, 2024, the AOT board resolved to approve King Power Duty Free Co., Ltd. (KPD) ceasing bonded warehouse operations for inbound duty-free stores at Suvarnabhumi, Phuket, Chiang Mai, and Hat Yai, and Don Mueang Airports. AOT has repossessed these areas from KPD since August 1, 2024.
This decision follows the July 2, 2024, Cabinet meeting, which acknowledged the proposed cessation of bonded warehouse tax privileges for inbound duty-free store operators, as recommended by the Ministry of Finance. The plan aimed to redirect spending from inbound duty-free stores to circulate more effectively within the country, generating greater national economic value.
Subsequently, the Customs Department issued letters to KPD and AOT requesting their cooperation in implementing the Cabinet’s resolution. KPD responded in writing to the Customs Department, agreeing to cooperate, and also officially notified AOT of its intention to cease operating inbound duty-free stores at the five airports in compliance with the resolution.
The cessation of KPD’s inbound duty-free business consequently reduces KPD’s operational areas for duty-free goods. According to the agreement between AOT and KPD, if there is any change—regardless of the reason—in the area specified in the contract, the compensation will increase or decrease in proportion to the increase or decrease in the area of the duty-free shops, as applicable.
Consequently, this change resulted in AOT’s rental income at the five airports decreasing by about THB 1.70 million per month. The minimum monthly compensation during the 2024 – 2025 contract years at Suvarnabhumi Airport decreased by approximately THB 126.25 million per month; Phuket, Chiang Mai, and Hat Yai Airports by around THB 8.41 million per month; and Don Mueang Airport by about THB 6.96 million per month.
