Airports of Thailand Plc (AoT), the operator of six international airports, expects revenue to rise healthily once its 220-billion-baht expansion plan is completed next year.
The company is on track with its five-year investment plan that started in 2015. It is scheduled to be completed next year, expanding Suvarnabhumi, Don Mueang, Phuket, Chiang Mai, Mae Fah Luang-Chiang Rai and Hat Yai airports.
Continued increases in tourist arrivals is another positive factor for the agency. Moreover, the removal of the red flag given by the International Civil Aviation Organization last October has attracted more international airlines to operate service in Thailand, serving the growing tourist numbers.
Foreign passengers generate more income because each is required to pay 700 baht for a passenger service charge per flight. Domestic passengers pay 100 baht per flight.
The new terminal at Suvarnabhumi airport is scheduled to be completed next year and fully operational by 2020. The terminal will help increase passenger capacity from 45 million per year to 90 million at the airport.
This year the government approved AoT building two new airports and managing and expanding four existing airports owned by the Airports Department. The two new airports are Chiang Mai Airport 2, which will be located in Lamphun province, and Phuket Airport 2, located in Phangnga province.
There are four other local airports managed by AoT: those in Tak, Sakon Nakhon, Chumphon and Udon Thani provinces.
Udon Thani airport is being pushed to become a new regional gateway, linking with neighbouring countries, said Mr Nitinai.
AoT also earns income from duty-free concession fees, a segment that is now dominated by King Power International Group. He said AoT expects to finalise concession bidding for duty-free business within the next few months. New operators are likely to sign contracts with AoT within this year, two years before King Power’s duty-free shop concession contract ends.
Source: Bangkok Post
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