TOP 10 OPERATORS 8: KING POWER INTERNATIONAL


payments for the period 1 February 2020 to 31 March 2022.


Support for concessionaires On 22 April, additional assistance measures for concessionaires and airlines were approved. The AoT Board of Directors approved the rates of fixed concession charges and MAGs for commercial activities, for the period 1 April to 31 December 2020. Under the terms, AoT would collect MAGs based on fees in 2019 as a calculation base. AoT states that the previously


outlined assistance measures (1 February 2020 to 31 March 2022) did not cover King Power’s contract, whereby the first year’s MAG based on passenger volumes forecast for 2021 were proposed before Covid-19 took hold earlier this year. King Power later submitted a letter


requesting that AoT consider the assistance measures. Due to prolonged challenges


linked to Covid-19, AoT granted an extension of a 12-month credit term (instead of a six-month credit term) of payment for airlines and concessionaires covering monthly concession charge instalments from February to July 2020. AoT also resolved to extend the


contracts for one year as mentioned above, adjust the MAG collection from 1 April 2022 and alter MAG collections in line with King Power’s bid proposals. In a letter addressed to the


Thai stock exchange around the time of the credit term extension announcement, AoT said: “Such assistance measures shall be applicable to the concessionaires and airlines who already submitted a letter of request for payment term extension. “For those who submit it after the


date of the AoT Board of Directors’ resolution (29 July 2020), they shall be eligible for such assistance measure, without a retroactive effect.” Responding to investor queries


regarding these assistance measures and adjusted MAG terms for King Power International Group’s commercial contracts, AoT issued a statement at the end of last month. The statement explains that the first six months of King Power’s


OCTOBER 2020


contract is allocated as a “period for area improvement and decoration in the main passenger terminal building and the satellite 1 (SAT- 1)”. It reads: “The Covid-19 outbreak


has obstructed concessionaires from preparing for the area improvement and decoration as previously scheduled and affected the planned opening of SAT-1, which was due to commence operations by 2020. “SAT-1 will now be operational in


October 2022 [AoT considered such a schedule based on major factors in terms of end date, system test, as well as expected increase in the number of passengers to prevent the impacts on AoT’s expenses].”


Planning for the future On the overall


situation


regarding support measures for concessionaires, AoT said more recently: “As soon as passenger volume is equal to the passenger volume forecast conducted by the Group, AoT will further increase the minimum guarantee by means of the calculation formula determined in the contract. “The assistance measures for the concessionaires and airlines


“As soon as passenger volume is equal to the passenger volume forecast conducted by the Group, AoT will further increase the minimum guarantee...”


Airports of Thailand (AoT)


affected by the Covid-19 outbreak were prudently considered based on various factors including fairness and shareholders’ interests. “Once situations return to normal,


AoT operations can continue without interruption, thus having positive impacts on AoT operations and the national economy as a whole.” In 2020, AoT expects a -50.7%


decrease in revenue compared with fiscal year 2019. This is expected to reach -42.21% in 2021 compared with fiscal 2020, and +188.13% in 2022 versus fiscal 2021. “However, such predictions are


based on the assumption that the Covid-19 vaccines are developed and the passenger volume in 2022 accounts for 76% of that in 2019 (the year before the emergence of Covid-19),” added AoT. «


Above: The Design Solution undertook the planning and design for 84 shops at Bangkok Suvarnabhumi including this liquor and tobacco store.


An exterior shot of the King Power International Rangnam complex in Bangkok. TOP 10 OPERATORS 35


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48