King Power's Last Stand: New CEO Battles to Save Duty-Free Empire

 

Taking the helm of King Power Duty Free amidst its impending collapse, new CEO Nitinai Sirismatthakarn confronts the monumental task of company revival and the critical need to restore accountability.

 

During an exclusive interview with Thansettakij, Nitinai delved into the true state of affairs, addressing all contentious matters and detailing King Power's forward-looking strategy for resurgence.

 

 

From Public Sector to Private Crisis

Nitinai's journey to King Power's corner office began after a two-year hiatus following his departure as managing director of the Tourism Authority of Thailand (TAT).

 

The mandatory cooling-off period, required by law for former public officials, left him reflecting on his career trajectory.

 

"I had two paths to choose from," Nitinai explained. "Remaining in the public sector or transitioning to private enterprise. I ultimately decided the former wasn't for me."

 

The legal requirements proved complex.

 

During his eight-year tenure at Airports of Thailand Public Company Limited (AOT), Nitinai had overseen more than 10,000 contracts with over 5,000 companies—from light bulbs to cement and steel—effectively barring him from employment with any of these firms for two years.

 

After beginning his job search in February 2025, Nitinai weighed multiple offers before accepting King Power's chief executive position on 4th June 2025.

 

Addressing potential conflict of interest concerns, he noted that given his extensive previous dealings, similar issues would arise regardless of his chosen employer.
 

 

The Duty-Free Dilemma

At the heart of King Power's troubles lies its duty-free concession agreements with AOT's main airports.

 

Nitinai acknowledges the gravity of the situation, admitting uncertainty about developments during his two-year absence from the industry.

 

"I'm not entirely sure what transpired during those two years. I haven't seen the figures, so I don't know what was left unattended," he said, highlighting concerns about bank guarantee arrangements that secure the concession contracts.

 

The company recently submitted a letter requesting discussions about cancelling duty-free shop contracts at three regional airports: Phuket, Chiang Mai, and Hat Yai.

 

Nitinai employed a stark medical metaphor to describe the situation.

 

"It's like a patient surviving on oxygen," he explained. "The company's intention was to ask AOT to remove the oxygen because we can't cope anymore. This was the signal we sent."

 

However, this latest correspondence differs significantly from previous requests. Rather than seeking policy remedies or assistance measures, King Power is now explicitly discussing contract termination—a last resort that signals the depth of their financial distress.

 

 

The Numbers Game

The root of King Power's predicament lies in the Minimum Guarantee clauses of their concession agreements.

 

These fixed annual payments to AOT were calculated using parameters and assumptions that the COVID-19 pandemic rendered obsolete.

 

"The errors occurred due to miscalculations in the original assumptions, particularly regarding the COVID outbreak," Nitinai explained. "We need to examine which side made these errors by comparing minimum guarantee figures and ensure fairness under the changed circumstances."
 

 

King Power's letter to AOT outlined seven key parameters that have shifted dramatically, requiring comprehensive revision. The company now faces a precarious cash flow situation that threatens not only its operations but also its workforce.

 

 

Negotiation or Capitulation?

Recent discussions with AOT, Nitinai clarifies, were not negotiations but rather clarification sessions.

 

AOT invited King Power to elaborate on their proposed conditions and explain the detailed implications of their requests.

 

The process now moves through AOT's governance structure: initial screening by a filtering committee, followed by review by the revenue committee, before final consideration by the main board.

 

AOT is expected to engage consultants for comprehensive analysis within a 60-day timeframe.

 

"We're in a position where we're saying we can't manage, and we're asking AOT for help," Nitinai stated. "We'll listen. If the conditions allow us to remain profitable, we'll stay. If not, and we can't make it work together, we'll accept that."

 

 

Disruption or Cycle?

Looking beyond the immediate crisis, Nitinai frames King Power's situation within broader business theory.

 

He distinguishes between cyclical downturns—temporary setbacks in otherwise viable industries—and genuine disruption that fundamentally alters market dynamics.

 

"Business operations differ significantly," he explained. "If it's an upward cycle, we can inject resources to address shortages. But if it's a downturn, it means removing ourselves from that industry entirely."

 

The critical question facing King Power is whether current conditions represent disruption or a cycle. Nitinai views the terms proposed to AOT as reflecting potential collapse for both parties, making their response crucial for determining the company's future strategy.

 

 

 

Future-Proofing Strategy

Should King Power survive this crisis, Nitinai envisions a dramatically different approach.

 

Rather than competing on traditional metrics—such as superior video presentation quality—the company aims to anticipate market changes before they occur.

 

"Our next move won't be measured by superiority in doing the same old things," he said. "Success lies in reading the world accurately because the world has already changed."

 

This forward-thinking approach reflects hard-learned lessons from the pandemic's impact on travel retail. King Power's survival strategy involves identifying what others won't attempt for another two years and positioning themselves accordingly.

 

 

 

The Waiting Game

As King Power awaits AOT's decision, the company continues examining its liquidity position, staff structure, and the specific conditions causing its disruption.

 

The restructuring process, common among businesses facing existential threats, requires careful analysis before implementation.

 

The stakes couldn't be higher. For King Power, AOT's response will determine whether this represents a temporary setback or the end of an era in Thai duty-free retail.

 

For the broader industry, it serves as a stark reminder of how external shocks can transform once-stable business models overnight.

 

Nitinai's candour about the company's precarious position reflects both the severity of the crisis and his determination to address it transparently.

 

Whether this approach proves sufficient to save King Power remains to be seen, but his acknowledgement of the company's vulnerabilities marks a significant departure from typical corporate communications during crises.

 

The coming weeks will reveal whether King Power's plea for mercy translates into meaningful relief, or whether Thailand's duty-free landscape is about to undergo its most significant transformation in decades.