King Power

History

King Power began in 1989, with a license granted for Thailand's first downtown duty free shop at Mahatun Plaza. In 1995, King Power won the sole concession to operate duty-free shops at Don Mueang Airport, then Bangkok's main airport. In 1997, the government of Prime Minister Chavalit Yongchaiyudh granted the company the sole right to manage duty-free business at the World Trade Centre in downtown Bangkok for 10 years. The business had previously been managed by the Tourism Authority of Thailand. Some questioned whether it was contrary to Prime Minister's Office regulations regarding partnership with private business.

In 2004, the government of Thaksin Shinawatra granted King Power the right to operate duty-free shops at Suvarnabhumi, Bangkok's new main airport, for 10 years. Shortly thereafter, the company won the concession to operate duty-free shops at four major provincial airports until 2015. There was no bidding for the concessions.

King Power received the royal warrant from the King of Thailand in December 2009. The garuda statue in front of its headquarters symbolizes that privilege.

In August 2010, following agreement on a three-year shirt sponsorship deal with King Power, Milan Mandarić sold the English football club Leicester City F.C. to a Thai-led consortium called Asian Football Investments (AFI), owned by King Power Group's Vichai Srivaddhanaprabha.

In June 2016 King Power purchased a US$225 million stake in Thai AirAsia, the country's largest budget airline. The purchase of 39 percent of holding company Asia Aviation makes King Power the second largest shareholder in Thai AirAsia.

Scandals

In 2007 Airports of Thailand PLC (AOT) ordered King Power out of Suvarnabhumi Airport as it found that King Power had colluded with politicians, AOT board members, and AOT officials to open at the airport without permission from the government. It was found that the contracts were void because they were designed to avoid the Public-Private Joint Venture Act that requires a lengthy selection process for any investment worth one billion baht or more by the private sector in a state project. King Power filed lawsuits against AOT in the civil courts for nullifying their contracts. To date, King Power remain at the airport and have recently applied for additional retail space.

In 2009, King Power and its staff were accused of being involved in an elaborate scam involving extortion of tourists at its Suvarnabhumi Airport outlets. A foreign couple were arrested for shoplifting an expensive wallet then instead of being handed over to the police they were taken to a hotel where they were threatened with lengthy jail terms unless they paid cash to secure their freedom. The couple allege they were innocent, that King Power were complicit in the scam, and that a foreign mediator, a Sri Lankan named Tony, handled the negotiations. King Power issued CCTV footage of the couple allegedly shoplifting and a denial they or their staff were involved. After this story broke several other similar cases came to light.

Stores

King Power has outlets at nine Thai airports and stores in major tourist venues.