Thai duty-free giant King Power gets airport payment relief
A duty-free shop at Suvarnabhumi International Airport on Oct 27, 2021 in Bangkok. (File photo: AFP/Lilian Suwanrumpha)
BANGKOK: Thailand's airport authority said on Friday (Jun 27) it had approved extended payment terms for duty-free giant King Power, after the company sought to quit its concessions citing a drop in tourist numbers.
Airports of Thailand said King Power, which operates at five airports in the country, applied for a relief scheme for firms "facing liquidity problems" on 23 Jun.
AOT told the Stock Exchange of Thailand (SET) its board had granted permission for the firm to split the minimum payments required for its contracts into installments, with the payment window extended by eight months.
King Power must provide collateral of 1.45 billion baht (US$44.5 million) "to ensure its financial obligations in case of unexpected events", said a public statement to the SET.
AOT shares fell 2.4 per cent in Bangkok following the announcement.
King Power, shirt sponsors for English football club Leicester City, has a monopoly on duty-free outlets at Bangkok's Suvarnabhumi and Don Mueang airports, as well as those in Phuket, Chiang Mai and Hat Yai.
The King Power Group also operates retail outlets and hospitality services around Thailand.
Founder Vichai Srivaddhanaprabha led a consortium that bought Leicester City in 2010, and it was under his ownership that the Foxes secured their Premier League title in 2016.
