The AOT will start reclaiming some outbound tax-free areas on July 1, ensuring that there will be little impact. Thailand's airports are expected to return to 2019 levels to rank among the world's top 20 airports to increase passenger service space.
Chairman and CEO of Airports of Thailand Public Company Limited or AOT Mr. Keerati Kidmanawat revealed that AOT.
Reclaiming duty-free area This will commence from July 1, 2024, for certain outbound areas of the contracting parties. Suvarnabhumi Airport to accommodate 80 million passengers/year in next 3 years from current capacity of 60 million, AOT space to be prepared to accommodate more passengers. This provides more space for passengers to wait. Playground and co-working space, and provision of breastfeeding space for mothers and babies. This will increase the common area to serve more passengers. The budget for developing the area is expected to be approximately 100 million baht.
Although demanding the return of space will affect space rental income by about 90 million baht per month, the company is believed to receive 730 baht/inbound passenger service charges (PSC): AOT sees the company not losing any revenue. Because it is capable of carrying more passengers. Especially at airports that are frequented by foreigners. ie Suvarnabhumi and Phuket.
AOT requests the return of the operator's commercial portion. and some government work areas within the concourse and SAT-1 buildings at Suvarnabhumi Airport with a total area of approximately 1,097.14 square meters and within the International Passenger Terminal. At Phuket Airport, the total amount is approximately 491.22 square meters, the total rentable space is not 8% of the total area.
Abolition of inbound duty free stores, including cancellation of tax exemption for goods purchased from duty free stores by inbound travelers. As per the cabinet resolution on July 2, 2024, Mr. Keerati said. It should be made into a common area to serve passengers. Incoming commercial space is not much, approximately 20% of the total commercial space. And the outbound segment is less than 10% of revenue, so it does not significantly affect AOT's revenue.
At this time, we are waiting for the customs department to notify us when and how to start. Then negotiations will be held with King Power. It is under the agreement that if the tenant of the premises changes the area, the compensation will be proportionally changed as per the agreement.
“Reclaiming outbound and inbound space is in line with Prime Minister Mr. Seth Thavis's policy of aiming to rank Thailand's airports among the top 20 airports in the world. Also to increase the airport's capacity to become an aviation hub to accommodate more than 150 million passengers a year,” Mr. Keerati said.
@ This year the total number of passengers is expected to reach 120 million people.
Mr. Kirati said (Oct. 2023 – March 2024) gross revenue of 34 billion baht and net profit of 10.3 billion baht as passenger numbers are expected to reach the target of 120 million people this year.
In the 8 months of 2024 (Oct. 2023-May 2024), the 6 airports had a total of 81.05 million passengers, an 83.4% recovery compared to 2019 (pre-Covid) and 2025 AOT to 140 million, equivalent to the pre-Covid period.
Currently, 55% of AOT's revenue comes from aeronautical operations (aero), while 45% comes from non-aeronautical operations (non-aero), and apart from rental space, AOT also owns Airport City with an area of approximately 600 rai and an airport city area of The contract is expected to be signed by the end of this year for the 723 rai area next year where the concession will be given to develop it as a convention center, hotel or other non-aero generating things, we are currently in talks with some entrepreneurs. Air Force Officer Training Center should be developed as a logistics park
Mr. Keerati expects this revenue to be recognized in 2026 or 2027.
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