Thailand: Don Mueang duty free up for auction

• Dec 11, 2019

Airports of Thailand (AoT) expects milder competition on Wednesday when it accepts bids from contenders vying for the right to operate duty-free shops at Don Mueang airport.

AoT president Nitinai Sirismatthakarn said the contest is unlikely to be as fierce as the one to run duty-free and other commercial operations across four airports, as contenders are aware of Don Mueang’s limitations.

Earlier this year King Power won the right to run duty-free shops at four airports managed by AoT — namely Phuket, Chiang Mai, Hat Yai and Suvarnabhumi.

King Power’s bid to run Suvarnabhumi’s duty-free operations guaranteed a minimum return of 15.4 billion baht — far higher than its two competitors’ estimates of 7.2 billion and 8.5 billion baht.

Mr Nitinai said several factors dictated lower competition for the Don Mueang concession. Passenger capacity at the airport is limited because no more runways can be built and, despite a new terminal, the number of flights cannot be increased in the long run. Another factor was the upcoming bidding for duty free pick-up counters at Don Mueang and Suvarnabhumi airports in January, he said.

The AoT president said bidders will be announced today, with technical presentations to follow on Dec 12-13 before the bid envelopes are opened on Monday. The result will be submitted to the screening committee on Dec 23 and then to AoT’s board. An AoT source said yesterday that up to five companies are expected to take part in the bidding, including King Power and a Bangkok Airways-Lotte Duty Free consortium.

Don Mueang’s duty-free shops will cover up to 4,000 square metres in both passenger terminals. The current concession will expire in September 2022.

Source: https://www.bangkokpost.com/business/1813014/don-mueang-duty-free-up-for-auction