King Power wins Duty-free auction in Thailand

[Ric Flair]

13 minutes ago, dnewty said:

Good news this morning that King Power have now won the rights to the other three Airports.

?

[Itsthejoeker]

Hurray for monopolies!

[Guest Markyblue]

1 minute ago, Itsthejoeker said:

Hurray for monopolies!

Always liked to be the car.

[joachim1965]

Let's get spending.?

[Vlad the Fox]

To celebrate the winning of the franchise I’ve heard that at the first home game of the season there’s going to be a plastic bag under everyone’s seat with a box of 200 fags, 6 bottles of wine and a Toblerone in.  

[ThaiFox]

On 02/06/2019 at 08:01, LinekersLugs said:

Sorry to temper things but estimate are they will be making upto 40% less profit , they had to go balls deep into the margins to get the business infact the bid is based around 55-60m using the airport , they are worried about the other airports as despite being 20% of the total revenue they are 40% of the current profit owing to the cheaper and lex expensive retail floor space , let’s relax and see how this plays out , it’s good but it’s a reduction not an increase in our owners income , which is still shit loads 

 

 

 

On 10/06/2019 at 07:09, dnewty said:

Good news this morning that King Power have now won the rights to the other three Airports.

Another smaller airport which King Power was awarded, last November, on a 10 year contract (joint with The Central Group) is U-Tapao, which is located between Pattaya and Rayong.

 

Whilst this is a small airport currently, it is growing fast, and there are high speed rail links already planned between the two main Bangkok airports and U-Tapao.

 

Currently there are only a few International Flights to U-Tapao, but expansion is planned to make this the third biggest in Thailand, with links around all the major Asian countries. It already has a service from Russia, which is a big and fast expanding market.

 

As a Royal Navy base airport, the runway is already long enough to cope with all sizes of planes, so expansion could be as fast as conditions allow.

 

Pattaya is a huge tourist destination, with fast expanding developments in condominiums, huge shopping centres, and massive investments on roads and the beach front. The Russian tourist market has brought huge wealth to the area.

 

Rayong is a huge industrial area with many oil companies and international companies based there.

 

All good for King Power, and for the future of Leicester City.

 

 

Edited 11 June 2019 by ThaiFox

[urban.spaceman]

On 10/06/2019 at 08:02, Itsthejoeker said:

Hurray for monopolies!

[Wymsey]

Didn't know the best thread to put this question in, but is there still some plan underway to build a small memorial area in the area where Vichai and four others were involved in the helicopter disaster?

[Xen]

16 hours ago, Wymeswold fox said:

Didn't know the best thread to put this question in, but is there still some plan underway to build a small memorial area in the area where Vichai and four others were involved in the helicopter disaster?

Nothing for definite yet, but it's been mentioned in the Stadium Expansion thread that it might be included as part of that wider project (and indeed, may be partly behind why there's a delay in offical announcements, as plans are amended to include something like this)

[Nickfosse]

BANGKOK (Reuters) - Airports of Thailand Pcl (AOT) on Wednesday approved King Power Group’s $494 million (£393.3 million) bids for duty-free retailing at its major airports over rival contenders, including a group of South Korea’s Lotte and Bangkok Airways Pcl. 

 

 

FILE PHOTO: The headquarters of King Power Group, the nation's largest duty free retailer, is seen in Bangkok, Thailand April 28, 2016. REUTERS/Jorge Silva

The hotly-contested auction had lured international bidders seeking to benefit from Thailand’s booming duty-free industry on growing tourist numbers, and powered airport operator AOT’s revenue growth.

Tourist receipts account for about 12% of the second-largest economy in Southeast Asia, making it one of the most important drivers of growth, and in 2018, the country saw more than 38 million visitor arrivals, according to Thai government data.

Unlisted King Power Duty Free won two duty-free concession contracts and retail concessions at four major Thai airports, including the country’s main international airport Suvarnabhumi, AOT said in a statement.

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Its winning bids came less than a year after its founder Vichai Srivaddhanaprabha died in a helicopter crash in a helicopter crash outside the stadium of the Leicester City Football Club, that he owned. His death led to analysts questioning the future of King Power’s franchise.

King Power, which retains ownership of Leicester City club, offered 15.42 billion baht (£392.3 million) in yearly minimum guarantee of revenue without tax, topping the Lotte and Bangkok Airways consortium’s 8.52 billion baht bid, AOT said.

Another group - the Royal Orchid Hotel Pcl and WDFG UK, a unit from travel retailer Dufry — made an offer for 7.26 billion baht.

For a separate concession contract for three major regional international airports in Hat Yai, Phuket, and Chiang Mai, King Power also outbit its rivals by offering 2.33 billion baht. 

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It also won a licence to operate commercial services such as restaurants and shops at all four airports, beating local retail giant Central Pattana with an offer for a yearly minimum revenue of 5.8 billion baht.

King Power’s current duty-free concession at Suvarnabhumi airport is set to expire in 2020, and the new concession will expire in March 2031.

AOT, Thailand’s second biggest company by market value, reported a 13% rise in concession revenue to 16.7 billion baht in the last fiscal year.