AOT: 4 Duty-Free in 1 Contract is to Average Profit and Higher Negotiating Power
Mr. Nitinai has asserted that the duty-free contract has been carefully considered. The reason is to average profit between airports and for more negotiating power with suppliers.
Regarding the request of Mr. Arkhom Termpittayapaisith, Ministry of Transport, on last Friday to delay the Duty-Free auction, Mr. Nitinai Sirismattahakarna, President of Airports of Thailand Public Company Limited (AOT) has asserted today that the auction has been carefully considered before putting it into action.
Moreover, Mr. Nitinai also stated that the reason of grouping four duty-free concessions (Suvarnabhumi, Phuket, Chiangmai and Hat Yai) into one contract was to average the profit between airports, so that even a loss from other small airports, the shop could remain open. The study from advisor indicated that the winner which would take four duty-free concessions would have higher negotiating power with suppliers to remain competitive with other operators.