King Power, The Mall win Don Mueang deals

After the AOT board of directors meeting yesterday, the agency’s president Aniruth Thanomkulbut revealed that King Power would operate a 1,100-square-metre duty-free shop under a 10-year contract that will see AOT reap monthly revenue of Bt63 million, or Bt756 million per annum.
Meanwhile, The Mall Group was also awarded a 10-year contract to operate a food and drink business in a 2,700sqm area. AOT will reap Bt16.7 million a month or about Bt200 million annually from the deal.
Both companies can immediately start construction work, without having to wait for the contracts to be signed, Aniruth said. “We want the facilities to be ready before October 1.”
On that date, Don Mueang Airport will be officially reopened for international flights. Thai AirAsia will be the first airline to operate international flights to and from Don Mueang.
Under the commercial contracts, revenue is expected to increase by 10 per cent per annum.
“The board thoroughly considered the proposals. King Power and The Mall Group offered the best returns and are able to deliver the services. Meanwhile, we have a working committee to oversee the private players’ operations,” he said.
Earlier, there were concerns that King Power had exaggerated its bid and AOT might not reap as much as proposed. Central Retail Corp also bid to operate the duty-free shop.
King Power, which currently operates a duty-free shop at Suvarnabhumi Airport, operated one under AOT contract at Don Mueang for years before the airport was closed in 2006.