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Airports of Thailand open bidding for new duty free contracts at three airports



Airports of Thailand (AoT) says they will finalise the bidding process to announce who will manage the commercial areas at three provincial airports – Phuket, Had Yai and Chiang Mai – on June 10.

King Power Duty Free has had a stranglehold on the duty free concession areas of the country’s four main airports but are having to bid for a renewal this year in a field of new retail bidders.

Wichai Bunyu, the senior executive vice president of AoT says today they opened up bidding for the private sector to submit its qualifications and technical and business plans to manage the commercial and tax-free areas of the three airports.

The committee will review the qualifications of the bidder, their technical and business plans and, if they make it that far, will then have their bid price revealed on June 10. He says the committee will announce the winner for all three provincial airports on that day. The winner would then be proposed to the company’s board for consideration on June 19.

King Power has already been re-awarded the concession at Suvarnabhumi Airport. Its bid guaranteed a return to AoT of over 2 billion baht per year

King Power Duty Free was among the four groups to purchase an auction envelope. The next group was Bangkok Airways who joined with South Korea-based Hotel Lotte and Bangkok Airways Holding. The third group was Royal Orchid Hotel jointly bidding with Empire Asia Group and WDFG UK. The final group was Central Department Store bidding with DFS Venture Singapore.

According to the bid rules, up to 80 per cent of the score will focus on the technical and business plan, with the remaining 20 per cent based on the monetary return to the AOT.

SOURCE: The Nation


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