King Power's Don Mueang bid astonishes

News > Transport

King Power's Don Mueang bid astonishes

ANALYSIS: Enormous offer to AOT crushes the competition, likely tightening the duty-free operator's stranglehold

Published: 30 Aug 2012 at 00.00
Newspaper section: News

King Power Duty Free Co has proposed a surprisingly high return to Airports of Thailand Plc (AOT) in its bid for the contract to run the duty-free and commercial areas at Don Mueang airport.

The AOT board is expected to select the company to run the duty-free shops at the old airport today.

According to a source at AOT, King Power Duty Free is offering a minimum return of 63 million baht a month, or 756 million baht a year, to AOT. In comparison, Central Retail Corporation has offered a minimum return of 40.6 million baht a month, Shilla Mall consortium proposed at least 35.2 million baht a month and Siam Future Development Co presented an offer of at least 24.2 million baht every month.

This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.

Forum

Your comments

pquinlan
Post : 922
Send message

Discussion 21 : 08 Sep 2012 at 10.1421
Post this to my Facebook
D2: This will not only end in corruption, that's where it is starting.
Like dislike 2 people liked / 0 people disliked this comment
greggy

Discussion 20 : 30 Aug 2012 at 23.1320
but it's a DOMESTIC airport!!!! Isn't duty free only a cheaper option at international airports!?!
from iPhone application.
Like dislike 3 people liked / 4 people disliked this comment
johninbkk
Post : 2,930
Send message

Discussion 19 : 30 Aug 2012 at 19.5619
Post this to my Facebook
KingPower is owned by members of the political party BhumJai Thai.
Like dislike 4 people liked / 0 people disliked this comment
mrsdonesh
Post : 135
Send message

Discussion 18 : 30 Aug 2012 at 16.4918
Post this to my Facebook
KingPower was public but is now private. Khun Vichai is a political player of the highest order, playing with both sides of the political spectrum. (See pics of 20th year celebrations). However many airports are controlled by monopolies, nature of the beast.
Price wise Johnny Black Lbl 1lt. aprx prices India B1067, Dubai B1060, Aus B1620, NZ B1635, Sin B2047, France B1329, Ireland B1912 Thailand B1070. About middle ground. Still they should not get DM if only for competitiveness, but they will get it.
Like dislike 4 people liked / 0 people disliked this comment
johnbegood
Post : 106
Send message

Discussion 17 : 30 Aug 2012 at 15.4617
Post this to my Facebook
Places like King Power make most of their profit on 1st time travellers and those of us who need the last minute purchase, confectionery etc.
Which I may say, is quite a considerable body count.
Frequent visitors to Thailand all know the prices are more poisonous than a Cobra.
It's a little like saying> You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time.
Like dislike 8 people liked / 0 people disliked this comment
drsmith
Post : 1,575
Send message

Discussion 16 : 30 Aug 2012 at 14.0716
Post this to my Facebook
I would wager if King Power wins Don Muang, they won't end up paying anywhere near what they promise. Another great scam in the making. Win the contract, crush the competition, then use government connections to claim they cannot possible afford to pay that much. In the end they win the concessions for probably less than the current lowest bidder.
Like dislike 7 people liked / 0 people disliked this comment
kakariki
Post : 4
Send message

Discussion 15 : 30 Aug 2012 at 12.4415
Post this to my Facebook
Hi all
Just remember it's "YOU" the traveller who will be paying the 63 million a month!
Like dislike 13 people liked / 0 people disliked this comment
Lazarisbk
Post : 224
Send message

Discussion 14 : 30 Aug 2012 at 12.4114
Post this to my Facebook
Discussion 9 : I thought KP was a family business owned by Khun Vichai
Like dislike 5 people liked / 0 people disliked this comment
pete
Post : 435
Send message

Discussion 13 : 30 Aug 2012 at 12.1013
Post this to my Facebook
Some cameras are cheaper in Bangkok shops than King Power duty free, some laptops are cheaper in shops than King Power duty free and like for like wine is much cheaper in Tops or Foodlands than King Power duty Free. How come?
Like dislike 16 people liked / 0 people disliked this comment
steveyinasia
Post : 346
Send message

Discussion 12 : 30 Aug 2012 at 11.5812
Post this to my Facebook
Thailand the hub of Monopolies.
Like dislike 11 people liked / 0 people disliked this comment