AOT approves King Power’s request to defer payments for 5 airports, interest only at 8.844%
AOT allows King Power to defer payments on duty-free contracts at 5 airports, paying 8.844% interest and placing a 1.45-billion-baht guarantee.
Airports of Thailand (AOT) Plc has approved a request from King Power Duty Free (KPD) to defer payments on three major concession contracts covering five airports, including Suvarnabhumi, Don Mueang, Phuket, Chiang Mai, and Hat Yai.
The deferral allows King Power to postpone minimum guarantee payments for up to 8 months per instalment, while paying monthly interest at an annual rate of 8.844% (MLR +2). In return, the company must place additional collateral worth 1.45 billion baht to cover the deferred payments and interest.
The decision was made during the AOT board meeting on June 25, following a proposal approved earlier by AOT’s Revenue Committee. The measure aims to support commercial operators and airlines facing liquidity challenges due to the lingering economic effects of the Covid-19 pandemic and global geopolitical tensions.
The three contracts covered under the extension include:
- Duty-free retail concession at Suvarnabhumi Airport
- Duty-free retail concession at Don Mueang Airport
- Duty-free retail concession at Phuket, Chiang Mai, and Hat Yai Airports
The revised payment schedule includes:
- June–October 2025 for Suvarnabhumi (with June deferred by 6 months only)
- September–October 2025 for Don Mueang
- July–October 2025 for Phuket, Chiang Mai, and Hat Yai
King Power must pay interest monthly on each deferred instalment and provide 1.45 billion baht in total financial guarantees across the three contracts to safeguard AOT against unexpected default.
AOT has assured the public that its financial position remains strong and stable, with sufficient liquidity to support future investment projects and ongoing operations without compromising its fiscal stability.
