Profiling the world’s top ten airports
Bangkok Suvarnabhumi International
2017 international pax
Bangkok International operator Airports of Thailand (AOT) posted a healthy +8.3% rise in concession revenues for the last financial year (to 30 September 2017), with the figure hitting (US$454 million). Concession income contributed 61% of all non-aeronautical revenues of US$740 million. Non-aeronautical income climbed by +10.5% and represented 44% of AOT revenue in the year.
The strong commercial performance – led at Bangkok and other airports by King Power International Group – has continued in the first three quarters of the 2018 financial year. In Q3, concession revenues climbed by +12.5% year-on-year, outstripping passenger traffic growth of +8.5%.
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King Power International Group has been a key partner as AOT drives concession revenues to new heights at Bangkok
Tourism remains the major driver, with inbound travel from China a key factor in boosting traffic and concession income at Bangkok Suvarnabhumi.
With capacity tightening amid sharp annual traffic rises, the Bangkok Suvarnabhumi Airport Development Project continues at pace. The first phase will be completed by 2020, adding capacity for 15 million more passengers per year. A major Terminal 2 expansion project will add a further 30 million by 2021, the same year as a third runway is expected to be complete. These projects will offer opportunities for further commercial expansion, and the new terminal project is tied into AOT’s longer term plans for retail.
Airports of Thailand fact file
International passenger traffic 2017: Bangkok Suvarnabhumi International 48.8 million (+7.8%)
Non-aeronautical revenue: THB24,076 million (+10.6%)
Concession revenue: THB14,751 million (+8.3%)
Concession revenue as proportion of total group revenue: 27%
Source: Airports of Thailand
In March this year AOT announced that it is studying various concession models for a forthcoming tender covering its multi-airport duty free operations. King Power’s contract across the international airports comes to an end in September 2020.
With the new terminal building planned for Bangkok Suvarnabhumi, the new contract must be confirmed two years prior for the new retailer to prepare supply agreements, contracts and staff training, according to AOT. Whatever shape the final contract model takes, competition for the business is certain to be intense, both from local companies and international players.
The Moodie Davitt Report • The Online Magazine • September 2018