Suvarnabhumi » New duty free shop operator at Suvarnabhumi Bangkok Airport could be delayed
Sunday, July 20th, 2008
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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