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KING POWER

King Power's revenue hit by legal disputes

King Power International has missed its first-year revenue target due to controversies on the commercial and duty free shop agreements, said a company's executive.



King Power's revenue hit by legal disputes

Chulchit

 Chulchit Bunyaketu, Group Deputy Chairman of King Power, said that from September 2006 to September 2007, the group's revenue stood at Bt18 billion, Bt1 billion short of the target.

 "This follows problems at the airport as we have been ordered to close some shops and redecorate some areas (as ordered by Airports of Thailand)," he said.

 On the wrangling legal dispute with AOT over the premature cancellation of the commercial area and duty free shop management contracts, Chulchit said King Power would not remove shops from Suvarnabhumi Airport within 60 days as instructed by AOT's board of directors.

 King Power has filed a civil lawsuit to the Civil Court which provided business injunction until the case is solved. However, AOT rebutted that the case should be proceeded at the Administrative Court. A committee is now considering the case should be prosecuted in which court.

 Chulchit said King Power would wait until the committee comes up with the resolution.

 "In the next 60 days, if anybody removes King Power's shops, we need to seek court protection," he said.

- The Nation


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