On June 16, Airports of Thailand Public Company Limited (AOT) notified the Stock Exchange of Thailand that King Power Duty Free Co., Ltd. (KPD) had sent a letter seeking discussion on the possible termination of its concession agreement to operate duty-free stores at airports under AOT’s jurisdiction.
This followed media reports on June 13, 2025, stating that KPD had submitted a request to AOT to discuss ending its duty-free operations at Suvarnabhumi, Don Mueang, Phuket, Chiang Mai, and Hat Yai airports. KPD cited several adverse factors, including:
- The government policy leading to the closure of inbound duty-free shops
- Reduction of taxes on packaged wine, affecting duty-free sales
- AOT’s request for the return of retail spaces
- Lack of proactive government safety measures, impacting Chinese tourist numbers
- Domestic issues negatively affecting tourist and passenger volumes
- The impact of the COVID-19 pandemic
- Global conflicts and economic slowdown
These factors, according to KPD, are beyond its control and have caused continuous losses, making it unable to operate under the terms of the existing agreement.
AOT acknowledged receipt of KPD’s letter, which expressed a willingness to explore potential solutions to continue business operations or seek mutual agreement on a contract termination. AOT emphasized that both parties should negotiate to arrive at a fair resolution consistent with the contract terms.
Currently, AOT is reviewing options with KPD and plans to engage a public university as a consultant to study and analyze feasible solutions. The goal is to determine the most suitable course of action under current conditions, ensuring fairness to the operator and maximum benefit to AOT. Meanwhile, KPD continues its duty-free operations at AOT airports as usual.