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Thu, March 1, 2007 : Last updated 14:31 pm (Thai local time)



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Home > Business > Panel's focus turns to airport hotel





Panel's focus turns to airport hotel

A National Legislative Assembly committee looking at Suvarnabhumi problems will tomorrow consider alleged contractual irregularities at the airport hotel.

The Bannavit Kengrien committee has been asked to decide if Alliance Universal Hospitality, the operator of the Novotel Suvarnabhumi Airport Hotel, has committed contract violations.

Alliance is owned by shareholders of the Accor Group. It was awarded the management contract for the airport hotel from AAPC, owned by Thong Thana and DK Lam Property, the bid-winners for the hotel concession from Airports of Thailand (AOT).

The Bannavit committee will conclude if contractual terms of reference were violated in that the company did not directly receive the concession from AOT.

A source said Alliance might not be qualified to operate the hotel on behalf of AAPC.

The source added that the government might not be able to claim damages from Accor if there was any contract violation.

The source said Bannavit would chair tomorrow's meeting, the results of which would be handed to AOT chairman Saprang Kalayanamitr.

AOT has a 60-per-cent share in the hotel. Thai Airways International holds 30 per cent, and the rest is owned by state-run Krung Thai Bank.

A sub-committee earlier concluded tat Alliance had breached the operation contract because AAPC had transferred its rights to Alliance and this was against the terms of reference.

The source said the committee would recommend AOT revoke the contract if breaches were discovered.








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