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Published on January 5, 2008

Airports of Thailand (AOT) may be able to settle its dispute with King Power International over its operations at Suvarnabhumi Airport under the incoming government, which is likely to be led by the People Power Party (PPP).

A source at AOT said chances were high the company would be able to sort out the conflict with the duty-free-shop operator under the next government if it was formed by the PPP, whose members are mostly from the now-defunct Thai Rak Thai Party, which awarded the contract to King Power.

The AOT board, led by General Saprang Kalayanamitra, who was also a coup leader, nullified the AOT deals with King Power, which then went to court to seek damages of Bt68 billion from AOT. The case is now being considered by the Supreme Court.

The source said the case might be settled out of court in what he called a win-win solution. The new government is likely to come from the PPP, which is likely to be friendlier to King Power than the current government.

On the latest progress of the case, Air Marshal Chana U-Sathaporn, president of AOT, said that AOT yesterday invited lawyers from the two sides to discuss the case after a court ruling on December 28 that the disputes between AOT and King Power Suvarnabhumi and King Power Duty Free were under the jurisdiction of the civil court.

The court told both sides to begin negotiations. It is expected that the company will know by January 31 whether it will be able to resolve the issue out of court.

"We're confident AOT will be able to realise the income of King Power by the end of fiscal 2008," Chana said. "We have a solution but cannot reveal it now. There are two options: either settle the dispute out of court, or let the legal case continue. But if the case is settled, AOT will be able to realise the loss from concessions, duty-free shops and commercial areas for last year and this year of around Bt6 billion to Bt7 billion," he said.

The AOT board will also consider requests expected to be made by King Power during a meeting on Monday in Chiang Rai. King Power has asked the authorities to issue a "pass" for King Power staff to do their jobs for one year, instead of the three-month period under which they are currently operating. King Power said it needed the time to maintain the shops in good condition and decorate them.

This year, AOT plans to increase revenue from Suvarnabhumi Airport. AOT recently entered into 50 commercial agreements directly with the new traders. It also plans to reduce the landing fees for charter flights at Don Mueang airport. The reduction will take effect during the low season, to promote tourism.

Watcharapong Thongrung

 The Nation