The Transport Ministry has put the brakes on the Airport of Thailand Plc's (AoT) plan to auction a single concession to run duty-free shops at four airports after Prime Minister Prayut Chan-o-cha raised concerns that the business would be "monopolised".
As a state enterprise under the ministry, the AoT is required to address all concerns, Transport Minister Arkhom Termpittayapaisith said yesterday, adding that the auction will be postponed until all controversial issues are considered.
Mr Arkhom gave the order after a meeting with AoT president Nitinai Sirismatthakarn, who earlier said the AoT took Gen Prayut's call to review the auction plan into account, but said it will not change its decision because "we found no new reason to reverse the decision".
However, Mr Arkhom wants the AoT to look again at whether the single concession will lead to a monopoly and whether it violates the newly amended Public-Private Partnership Promotion Act, also known as the PPP Act.
The questions followed the AoT's move to call bids for running duty-free shops at Suvarnabhumi, Chiang Mai, Phuket and Hat Yai airports under a single concession.
They are four of five airports overseen by the AoT.
The other is Don Mueang airport in northern Bangkok.
Vichien Phongsathorn, chairman of the Anti-Corruption Organisation of Thailand, which earlier petitioned the premier to refer to the Integrity Pact, yesterday sent a letter of thanks to Gen Prayut for his decision, which highlighted the issues of monopoly, transparency and fairness.
Under the plan, a bidding winner will be allowed to operate at the four airports for 10 years -- from Sept 28, 2020 to Mar 31, 2031.
Previously, Mr Nitinai said he expected that the outcome of the bidding at Suvarnabhumi would be announced before Aug 27 this year, one year before the present concession expires.
King Power International Group has been the sole duty-free operator at the airport since its opening in 2006.
The company also has the right to conduct its duty-free business at Don Mueang.
The new single concession is worrying the Thai Retailers Association.
It insisted the duty-free shop concession at Suvarnabhumi must be split by product categories in order to rack up higher revenues.
The multiple-concession system will allow shop owners to develop expertise in selling certain goods and offer a greater variety to tourists, the association said.
The current duty free business management at Suvarnabhumi and Don Mueang under a master concession is considered a de facto monopoly.
However, the group was not opposed to the government combining three upcountry airports under one concession, it said.
However, AoT board chairman Prasong Poontaneat insisted the bidding plan had been thoroughly considered, adding that the four airports must go together in one package to draw investment.
At present, duty-free shops at Chiang Mai, Phuket and Hat Yai airports are in the red, so without the inclusion of profitable Suvarnabhumi to cover their losses, "both investors and brand name products will not come", he said.
He also said the AoT carefully studied the legal aspects of the single concession plan and is confident it does not go against the PPP Act, which stipulates that basic infrastructure projects and public services must be invested in jointly by both public and private sectors.