King Power is seeking to end the contract with Airports of Thailand Plc (AoT) for its duty-free business at five international airports.
The AoT said on Monday that King Power Duty Free Co had informed it of its intention to cancel the contract to operate duty-free shops at Suvarnabhumi, Don Mueang, Chiang Mai, Phuket and Hat Yai airports.
The company cited the impacts on its business from the government's decision to lower taxes on wine; a continued drop in tourists, especially from China; the Covid-19 pandemic; and geopolitical and trade wars.
An analyst at Pi Securities said he did not expect King Power to walk away from the duty-free business at the five airports.
King Power only wanted to renegotiate the existing contract with the airport agency, he said.
King Power anticipated more air travellers at Suvarnabhumi after the pandemic and the operation of its satellite, Sat-1 to serve more passengers, he added.
King Power won the bid to operate duty-free shops at Thailand's international airports in 2019.
