Board of AOT Approves Contract Amendment with "King Power"

The Board of Airports of Thailand (AOT) has approved the amendment of the contract with King Power by maintaining the Minimum Guarantee (MG) and increasing the Revenue Sharing percentage, as well as extending the duty-free contract at Suvarnabhumi Airport and Don Mueang Airport.

According to a report from Airports of Thailand Public Company Limited (AOT), the 18th/2025 Board Meeting on December 2, 2025 agreed to approve the resolution regarding the operation of King Power Duty Free Co., Ltd. (KPD) at Suvarnabhumi Airport, Don Mueang Airport, Phuket Airport, Chiang Mai Airport, and Hat Yai Airport.

This resolution follows discussions by the negotiation working group aimed at resolving the issues regarding the operation of duty-free shops at AOT-managed airports. Two main options were considered: amending the contract or terminating it to open a new bidding process. The decision concluded that the most appropriate solution is to amend the contract.

The amendment will adjust the terms to align with current realities in contract management, allowing AOT to continue providing services to passengers for the long term and maximizing benefits for AOT. The amended measures include:

1. Maintaining business continuity with a high level of service.
2. Ensuring more stable revenue, as AOT will continue to receive payments without a gap during the process of finding a new operator.
3. Offering greater returns and minimizing economic damage.

This approach is expected to benefit the economy as a whole while maintaining employment rates within related businesses. Furthermore, the measures will enable AOT to upgrade services to international standards and maintain income levels, ensuring stability for employees in related businesses. It also supports the development of service quality and overall revenue, as well as advancing the development plans for six AOT airports.

A report also noted that opting for contract amendment will benefit AOT more than cancelling the contract and reopening the bidding process. If the contract were to be cancelled, AOT would lose revenue from the Minimum Guarantee until a new operator is found, which is expected to take at least 14 months. A new operator may also fail to provide the same or higher returns compared to the current operator, given the ongoing economic issues both domestically and globally.

The terms for each contract remain as follows:

1. The Minimum Guarantee (MG): AOT will continue to receive the MG payment, which will grow by 5% per year to match the average Gross Domestic Product (GDP) growth in Southeast Asia.
2. Revenue Sharing: 20% of total sales.
3. Upside Benefits: Additional revenue if certain conditions are met.

Details of the contract amendments for each airport are as follows:

Suvarnabhumi Airport

The solution is that AOT will maintain the annual Minimum Guarantee per passenger (equivalent to 232.90 baht per person), with 5% annual growth.

Additionally, AOT has negotiated for a 35% revenue share of the spending per head exceeding the set threshold, offering opportunities for additional income if the aviation industry improves. This is a better deal compared to the previous contract, which provided only a 20% revenue share throughout the contract’s duration.

The contract will be extended by 2 years, aligning with the Suvarnabhumi development plan, which anticipates the South Terminal construction to be completed by 2032. The extension will cover the period during the renovation of the existing passenger terminal, which KPD currently operates. The extension will ensure business continuity during the terminal renovation period from 2032 to 2034.

During this period, it is expected that no new operators will be interested in joining the bidding. Therefore, the extension of the contract is necessary for AOT to maintain the continuity of the duty-free business while the gradual closure and renovation of the current passenger terminal proceeds smoothly.

Don Mueang Airport

The solution is that AOT will continue to charge the Minimum Guarantee per square meter (39,187.76 baht per m² per month) and maintain the 20% revenue share as per the original contract. If the number of passengers exceeds 100%, the Minimum Guarantee per square meter will revert to the previously agreed-upon rate.

Additionally, the contract will be extended for 5 years, as the operator needs to move operations to Terminal 3 and dismantle investments from the existing terminal. This extension will provide a reasonable period to recoup investments.

However, if the construction of Terminal 3 is delayed to the point where the remaining term of KPD’s current operating contract at Don Mueang Airport is less than 1 year by the official opening of Terminal 3, AOT reserves the right to consider terminating KPD’s current contract in order to open a new bidding process.

Phuket, Chiang Mai, and Hat Yai Airports (Regional Airports)

The solution is to continue charging the Minimum Guarantee (MG) per passenger, set at 129.67 baht per person, with a 5% annual growth starting from 2026, due to the reduced spending by passengers and the decline in passenger numbers after the COVID-19 pandemic. The average rate for the contract is expected to be 134.70 baht per person over its duration.

Furthermore, AOT has negotiated for a 35% revenue share of spending per head exceeding the set threshold, similar to the agreement made for Phuket Airport, allowing for additional income if the aviation industry improves. This is also a better deal compared to the previous contract, which provided only a 20% revenue share throughout the contract’s duration.

After the contract amendments, if the business returns to its original condition as per KPD's proposals, AOT reserves the right to reinstate the original MG and revenue sharing terms.