What happens next? While announcing the bidders’ ranking, Airports of Thailand (AOT) declined to reveal the amounts offered as any such revelation would be share price sensitive. AOT will now submit the bid to its remuneration committee and conclude the contract preparations. All relevant information will be disclosed to the public on 19 June when the winner is announced. Any protests must be filed by that date. The new concession beging on 28 September 2020, running until 31 March 2031. Given the intense controversy over the tender, the possibility of a protest cannot be dismissed. But for now it appears that King Power, no stranger to stern challenges, has seen off one of the biggest threats in its history. |
THAILAND. In big breaking news, long-term incumbent King Power International has topped the bid for the duty free concession at Suvarnabhumi Airport.
King Power has also been announced as the top bidder for a separate concession for other retail at the airport, including food & beverage, services and foreign exchange.
The results were unveiled today by Airports of Thailand.
The Moodie Davitt Report is on location in Bangkok and will bring you more details and reaction throughout the day.
For the duty free concession, King Power headed rival offers from a Bangkok Airways/Lotte Duty Free alliance, and a partnership between Royal Orchid Sheraton (Thailand), Empire Asia Group and Dufry-owned World Duty Free Group.
Airports of Thailand Senior Executive Vice President (Business Development and Marketing) Wichai Boonyu said that King Power had topped both the financial bid and overall score. The Bangkok Airways/Lotte Duty Free alliance was second and Royal Orchid Hotel/Empire Asia Group/World Duty Free Group third.
Scoring was based on a 100-point system with 80 points given over to the technical offer and 20 to the financial proposition. Airports of Thailand did not disclose the final scores.
Wichai said that King Power had raised its financial offer considerably over the current contract level and much higher than Airports of Thailand had expected.
Royal Orchid Hotel Managing Director Vitavas Vibhagool told awaiting media after the announcement that the company was disappointed but would bid for other duty free opportunities offered by Airports of Thailand. He said that the company had done its best to win the tender, even partnering with the world’s leading travel retailer, Dufry.
For the contract for other commercial activities at Suvarnabhumi, King Power beat out competition from Thai retail property development and investment company Central Pattana, the only other bidder. Minor International and The Mall Group had also purchased tender documents.
As in the duty free contract, Airports of Thailand said King Power had offered higher compensation than it had previously received and higher than it anticipated.
Airports of Thailand will now bring the selection results to the Revenue Review Committee on 12 June 2019 and its Board of Directors on 19 June 2019 for consideration and approval.
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