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Airports of Thailand to revoke permanent passes of all King Power staff

Thursday, June 7th, 2007

Airports of Thailand (AOT) agreed yesterday to revoke all permanent passes of staff and operators working at Suvarnabhumi airport under King Power International Group and replace them with temporary three month passes. The Airports of Thailand board said the decision was made because it had already nullified the group’s right to use commercial space at the airport.

According to acting Airports of Thailand president Kulya Pakakrong, the board viewed that the permanent passes could be cited to claim that Airports of Thailand still accepted King Power and its subcontractors’ use of commercial space in the airport’s passenger terminal.

The Airports of Thailand board nullified King Power‘s contract in March after finding that the firm’s acquisition of commercial space rights had not been scrutinised under the Public-Private Joint Venture Act.

As King Power and its shops in the passenger terminal are still operating pending legal proceedings, Airports of Thailand will replace permanent passes with temporary ones valid for only three months.

Until King Power signs an agreement recognising its use of permanent passes has nothing to do with Airports of Thailand‘s decision to nullify its commercial space contract, Airports of Thailand will not renew the permanent cards.

Suvarnabhumi airport director Serirat Prasutanond explained yesterday that operators working under King Power‘s contract needed passes because their areas of work were in some of the restricted areas of the airport.

At yesterday’s meeting, Airports of Thailand chairman Saprang Kalayanamitr also nominated acting national police chief Seripisuth Temiyavej to be a new Airports of Thailand board member. Transport Minister Theera Haocharoen said he and Finance Minister Chalongphob Sussangkarn had already agreed to Pol Gen Seripisuth’s participation in Airports of Thailand.




In flight liquids to be strictly enforced on June 1, 2007

Sunday, May 27th, 2007

Starting June 1, 2007, The Transport Ministry’s Aviation Department will enforce its rule requiring air passengers to display liquids, gels and sprays in transparent containers before boarding flights, Director-General Chaisak Angkasuwan said Saturday.

Mr. Chaisak said he had met representatives of Airports of Thailand (AOT), airlines and King Power, contracted for duty free and other business at Suvarnabhumi airport, regarding the measure, which will be enforced both on domestic and international routes beginning June 1.

Enforcement will follow International Civil Aviation Organization (ICAO) procedures already used by many airlines worldwide after Britain last year disclosed that terrorists planned to destroy planes and passengers with liquid bombs carried aboard aircraft.

Mr. Chaisak said ICAO personnel will inspect security measures at the new Bangkok airport and how Thai authorities monitor the carrying of liquid substances, gels and sprays by passengers.

Although King Power has prepared clear plastic bags for passengers buying products from its duty free shop at the airport, it expects its sales to drop 20-30 per cent in the first three to six months after the rule is enforced.

Passengers may find it troublesome to carry the products aboard the plane in the beginning but sales may pick up later after they are accustomed to the measure, the company said.

Thai Airways International, the national flag carrier, earlier said the company will comply with the new rule as well.




New duty free shop operator at Suvarnabhumi Bangkok Airport could be delayed

Tuesday, May 8th, 2007

The selection of a new duty free shop operator at Suvarnabhumi airport could be delayed if King Power obtains court protection for its concession.

King Power is expected to ask the Administrative Court for temporary dispensation against the Airports of Thailand board’s decision to nullify its contracts to run duty-free shops and sub-lease commercial space at the airport.

The source said if the dispensation was secured it would hold up selection of a new duty-free operator and impede negotiations with small outlets now sub-leasing airport space from King Power.

Airports of Thailand is offering the outlets the chance to lease space directly from it.

If King Power is granted dispensation, the company will be able conduct business as usual until the case goes through court and a new order is issued.

King Power‘s public relations division said yesterday management was exploring options to determine what action to take.

The court said King Power has placed the rent and fees it owes to Airports of Thailand  with the Legal Execution Department, a standard practise following contract nullification.

Transport Minister Theera Haocharoen said a court order would likely be unavoidable in King Power‘s case. However, he said, Airports of Thailand‘s handling of the situation was justified and the board had thoroughly examined the legality of its actions.

An Airports of Thailand board source said the board was accountable for its decision and was fully prepared for a legal backlash.

The nullification was made on the grounds that the contracts were illegal because King Power Duty Free intended to avoid scrutiny by keeping the scale of its investment below one billion baht per contract, as Airports of Thailand had stipulated. King Power has appealed to Airports of Thailand to reconsider, saying the firm did everything within the law and has carried out measures the Airports of Thailand proposed in redressing the problems.




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