next

Thai duty-free chain King Power Group plans to diversify into travel and sport businesses with the aim of cashing in on growth in these markets in China.

It has launched the process by buying a 39 per cent stake in Asia Aviation (AAV), which runs budget airline Thai AirAsia (TAA).

King Power founder/chief executive Vichai Srivaddhanaprabha says his company and TAA will start synergising business and marketing platforms to strengthen future growth following the Bt7.9 billion (US$224 million) deal.

Thai AirAsia will continue to expand its network while King Power will push more duty-free goods onboard, as well as via the internet. The retailer aims to become “one-stop service” centre for shopping, travelling and entertainment leveraging its ownership of premiership-winning Leicester City Football Club in Britain. Vichai bought the club in 2010.

King Power will soon to launch an online shopping duty-free promotion, and join a marketing campaign with its new partners. Even people who not travel will be able to buy duty-free items, it claims.
TAA, which flies between Thailand and China, and King Power will develop their brands, products and services together.

Vichai says he has been interested in the airline business for a long time, but sold a 5 per cent share in Nok Air because it was “too small”.

“China is an opportunity for us,” says the billionaire, whose net worth is estimated by Forbes magazine at about $3.1 billion. “It is emerging for both air travel and also for duty-free products.”

King Power has a monopoly on retailing at Bangkok’s Suvarnabhumi International Airport, although its concession will expire in five years.

In the airline deal, Vichai and four of his family bought control of AAV from its chief executive Tassapon Bijleveld and two of his family.

Earlier this year, King Power revealed plans to open duty-free shops in China, Japan, Myanmar and Vietnam.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.