The Airports of Thailand Plc (AoT) has decided to split the bidding of duty-free shops at Suvarnabhumi and three airports in the provinces into two contracts to end concerns about a monopoly.
The board on Friday decided to cave in to pressure after listening to complaints from critics over its single concession policy. Originally, the AoT was adamant on giving the winning bidder the rights at all four airports.
However, the board decided to divide the bidding into two contracts.
The first contract is for Suvarnabhumi while the second is for three provincial airports -- Chiang Mai, Phuket and Hat Yai airports, according to Nitinai Sirismatthakarn, president of the AoT.
"The AoT has followed advice from all parties to prevent a company from monopolising," Mr Nitinai told media after the board meeting.
Terms of reference for auctioning off a concession at Suvarnabhumi have been posted on the AoT's website while the ToR for another three are scheduled to go online next week.
Mr Nitinai said winners must ensure they select high-quality products to sell at airports at competitive prices in order to place airport retail in Thailand on a global scale in terms of quality and price, according to Mr Nitinai.
AoT will sell bidding envelopes on April 1.
The AoT earlier chose the single concession in order to draw investors by explaining it as more sustainable in terms of revenue.
"Currently, only Suvarnabhumi can reap profits while others face losses, so if the airports' duty-free businesses are not combined in one package, it will lead to an unpleasant investment prospect," said Prasong Poontaneat, AoT board chairman.
However, with the split concession, the AoT board remained concerned over how effectively duty-free shops upcountry will be operated, Mr Nitinai said.
Under its criteria to select winners, money gained under the two concessions must not be less than the share of revenues the AoT currently receives.
"Whoever can promise the highest share will win," he said.
Mana Nimitmongkol, secretary-general for the Anti-Corruption Organisation of Thailand, begged to differ.
"Each airport has a diverse passenger profile and purchasing power is different," Mr Mana said.
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