AOT to reclaim some areas from King Power at Suvarnabhumi, Phuket

The reclaimed spaces will be used to enhance various basic facilities to meet modern airport operational standards, the AOT resolution said. 

AOT plans to reclaim areas from duty-free shop operator King Power Duty Free, operational spaces from several government agencies, including the Immigration Office, the Customs Department, and the Revenue Department, effective from July 1, the resolution said.

Regarding the reclaimed areas, focusing on the duty-free shop operator “King Power,” approximately 1,400 square metres will be reclaimed, divided as follows:

Suvarnabhumi Airport: 1,000 square metres

This reduction decreases the duty-free space from the originally auctioned 12,000sqm by about 1,000sqm, or approximately 7%. 

Consequently, the condition requiring King Power to pay a minimum benefit share of around 234 baht per international departing passenger at Suvarnabhumi Airport would be adjusted to 218 baht per international departing passenger starting from November 2024, the resolution added.

Phuket Airport: 400sqm

This reduction decreases the duty-free space from the originally auctioned approximately 2,500sqm by about 400sqm, or approximately 17%. 

As a result, the condition requiring King Power to pay a minimum benefit share will decrease from 127 baht per international departing passenger to 105 baht per international passenger starting from November 2024.

AOT chief executive officer Keerati Kitmanawat said that the reclamation of operational areas follows recommendations from Skytrax. 

The reclaimed areas would be developed to improve services and facilitate easier airport usage for passengers, he said.

He assured that this reclamation would not affect the concession contracts, especially with King Power, as the contracts stipulate that AOT can reclaim areas for public development purposes without breaching contract conditions or requiring compensation to private entities.

While acknowledging that the reduction in space would lower AOT’s revenue by approximately 90 million baht per month, or about 1% of total revenue, this reduction is expected to be temporary, lasting only through 2024-25. 

"If passenger numbers increase, the lost revenue would be compensated by higher monthly minimum benefit shares, which are based on passenger volume," Keerati said.

AOT has plans to develop passenger service areas to better meet current demands and provide new experiences, catering to diverse lifestyles, he said, adding that the plan was to enhance the “Suvarnabhumi Airport Passenger Experience” with actions such as:

Upgrading Level 3 Passenger building SAT-1: Approximately 400sqm will be developed into areas for a game zone, kids zone, and relaxing/piano lounge.

Improving Level 3 Central Area SAT-1: About 150sqm will be converted into a seating and co-working space.

The timeline for these developments is as follows:

July 2024: Reclaim areas 30 days in advance as per contract requirements and commence detailed area design.

August–October 2024: Select operators and gain area access.

October–November 2024: Implement area improvements.

AOT said it aims to complete these improvements by the 2024 winter flight schedule, which coincides with the peak travel season, to enhance passenger services.

Additionally, AOT said it was studying the development of commercial areas within Suvarnabhumi Airport to cater to the diverse lifestyles of passengers, positioning the airport as a destination rather than just a travel gateway. The development of entertainment areas is expected to encourage passengers to spend more time at the airport, a trend seen at major airports worldwide.

AOT plans to develop the East Expansion of the main terminal at Suvarnabhumi Airport, covering approximately 60,000sqm, into a “Bangkok Food Street”, featuring renowned Bangkok restaurants. Plans also include developing areas for children, Thai massage shops, and dayroom hotels offering both daily and hourly rates. These developments are expected to be completed by 2027.