KPI hits back at Suvarnabhumi critics

By Administrator |

King Power International (Thailand), the duty free operator at Suvarnabhumi Airport has used the local press to hit back at critics who have accused it of not fulfilling its obligations to Airports of Thailand.

In The Nation newspaper, Group Chairman and Ceo Vichai Raksriaksorn has come out strongly rejecting assertions that the retailer had not paid a Bht.2bn ($58.7m) advance to Airports of Thailand (AOT).
In the newspaper, Vichai said the suggestion was incorrect and the company had already paid the money when the contract was awarded back in March 2005 and it had the receipt from AOT to prove it.
Vichai's comments follow those from a National Legislative Assembly subcommittee which claimed that KPI still owed the money and he said he was angry that the accusation was causing concern amongst some of the retailer's suppliers and he mentioned Gucci and Chanel in particular who are both scheduled to open boutiques at Suvarnabhumi in early February.KPI has also been accused of over expanding its shop areas and obstructing passenger walkways.
But Vichai told The Nation that KPI's contract actually says that its retail area should cover no less than 5,000sq m. He said that it was therefore perfectly acceptable that the company's shops now cover 9,498sq m and this is being reflected in increased payments to AOT from Bht.1.26bn a year to Bht.2.34bn ($36.9m to $68.6m).
Vichai also told the newspaper that the company's commitment was hardly in question, since it has spent a total of Bht.20bn ($587.1m) on its facilities in the new airport so far.

International

OUT NOW: TRBusiness Aug/Sep 2024 e-zine

The TRBusiness August/September e-zine is now live and ready to view – click here or scroll...

International

Optimism levels tumble Q2 TR Confidence Tracker

Optimism levels among respondents to the Q2 2024 TR Confidence Tracker, sponsored by Suntory...

International

Estée Lauder reports continued struggles in mainland China and GTR

The Estée Lauder Companies reported net sales of $15.61bn for the fiscal year ended 30 June...

image description

In the Magazine

TRBusiness Magazine is free to access. Read the latest issue now.

E-mail this link to a friend