THAILAND. In a major coup for the company, a King Power International-led consortium is to run all commercial services – duty free, other retail, food & beverage and services – at the New Bangkok International Airport at Suvarnabhumi, The Moodie Report has confirmed.
As reported last year, King Power was granted a new duty free contract to run from 29 September 2005 to 31 December 2015 at Bangkok International Airport, Chiang Mai International, Phuket International Airport and Hat Yai International Airport. King Power introduced the global duty free trade to its ambitious retail plans for Suvarnabhumi at the TFWA World Exhibition in Cannes last year.
That agreement has now been rubber-stamped and, just as importantly, been extended to full commercial activities at the new airport, according to a stock exchange filing made by Airports of Thailand.
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The walkthrough duty free concept at Suvarnabhumi Airport will ensure high store penetration levels |
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The Temple form retail concept is a modern interpretation of the graceful form found in traditional Thai architecture. |
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| The master plan of the departures concourse at Suvarnabhumi Airport |
King Power will manage 20,000sq m of terminal space at the new airport for 10 years. It will pay 15% of monthly sales to AOT, linked to a minimum annual guarantee.
The first year guarantee is set at THB1.43 billion (US$37.2 million). The rate will be adjusted every year in line with passenger growth and inflation rate, AOT said.
As reported previously, commercial operations at the new Suvarnabhumi airport are likely be delayed by six months to March 2006 from the original opening date of 29 September.
King Power reacted positively to the news. Sombat Dechapanichkul, Group Managing Director of King Power Group, declared that the company had 15 years of experience in airport retail management which would be turned to good effect at the new airport. He said that the company had long realised the design and architectural limitations of the existing Don Muang Airport.
As a result, King Power has embraced the concept of space management at the new airport. This will emphasise the following principles:
– style that will enhance the image and beauty of the airport;
– design that will reflect Thai values and traditions;
– because AOT wishes to simultaneously maximize commercial revenues and optimize customer flows, the design of the commercial areas will take into account passengers’ broader needs
Sombat said: “Furthermore, we will also try to create activities and services for three major groups of passengers – those arriving in the early morning, those who depart late at night and those transit passengers who spend long hours at the airport.
“Once we are able to create a range of activities to serve their requirements, Suvarnabhumi Airport will be the leading full range service international airport in the world.”
The 20,000sq m commercial area will be allocated according to passenger needs in the form of an entertainment complex and various retail shops.
The design and zoning are critical elements Sombat said. The overall design and fitting will focus heavily on the unique Thai identity. For example, a replica will be created of the Royal Barge Suphanahong. This will be carved out of Hopea Wood, in line with the original barge. The replica will be situated at the entrance of the departures terminal. “This is to show the unique Thai identity and the beauty of Thai arts. All areas will feature a special Thai identity to create a harmonised atmosphere,” Sombat said.
He said that due to the exclusive nature of the concession granted to King Power, AOT would instead be able to devote its resources to upgrading the aeronautical activities to the highest level. By combining the best commercial and aeronautical services Suvarnabhumi Airport would become the leading Asian aviation hub ahead of its Singapore and Malaysian rivals, he claimed.
King Power’s extraordinary plans for airport and downtown duty free retailing in Bangkok were recently profiled in The Moodie Report print edition. Click here to read the story
MORE STORIES ON KING POWER IN THAILAND
King Power’s downtown extravaganza begins to take shape in Bangkok – 18/02/05
King Power and Thailand get set for extraordinary airport and downtown retail operations – 25/10/04
Thais top King Power spend but Russians head sales per purchase league – 17/06/04
