BANGKOK, 25 February 2020: Airports of Thailand has awarded King Power Development Co the right to operate the duty-free pick-up counter services at Suvarnabhumi Airport and has introduced measures to alleviate the impact from the Covid-19 virus impact on service providers at AOT airports.
King Power was the only firm which submitted the bid for the right to run duty-free pick-up counter services at Suvarnabhumi Airport on 17 January 2020.
Bangkok Airways Plc, the other company that purchased the bidding documents, made available between 28 November and 13 December 13, 2019, did not tender.
King Power completed a presentation of its operation, and technical proposals and AOT said King Power had offered more returns than AOT previously received.
On 13 February 2020, AOT’s Revenue Management Committee endorsed the selection result to declare King Power the bid winner although there were no competing bids.
King Power the concession to operate the duty-free pick-up counter services at Suvarnabhumi Airport from 28 September 2020 to 31 December 2030.
Virus relief measures
AOT has approved measures to alleviate the economic, social and health impacts from the Covid-19 outbreak on service providers at six AOT-operated airports.
The disease is now considered a public health emergency worldwide and has seriously impacted regional economies and eroded confidence in tourism.
In response to the crisis, the AOT’s board agreed to cut fees imposed on commercial activities at its airports effective 1 February 2020 to 31 March 31, 2022. The fee reduction is in line with a stimulus package to encourage airlines to maintain flight schedules implemented last January.
The remedial measures reduce fees for contracts with fixed monthly returns by 20%, until 31 January 2021. AOT will review the discount rates in the subsequent years to suit the situation.
Secondly, for contracts with an absence of a fixed return provision, the monthly and yearly minimum fees will be waived with operators are only paying fees at a given percentage until 31 March 2022.
Thirdly, for operators under the Public and Private joint Venture Act BE 2562, AOT will consider the relief based on procedures prescribed by law.
In addition, AOT will help airport service providers to tackle liquidity problems by allowing them to defer fee payments for up to six months. The fine for such deferred payment will also be exempted.
AOT has put in place measures to support the public health campaign by earmarking THB21.82 million for the Ministry of Public Health to acquire 17 thermo-scans to improve the efficiency of passenger screening at AOT airports and help to build confidence in the Thai tourism industry.
