Following the Civil Aviation Board (CAB) approval of the Passenger Service Charges (PSC) increase for outbound passengers from THB 730 to THB 1,120 per person, Air Chief Marshal Manat Chavanaprayoon, Director General of the Civil Aviation Authority of Thailand (CAAT), disclosed that CAAT is preparing to submit this matter to Phiphat Ratchakitprakarn, Deputy Prime Minister and the Minister of Transport for signature to approve Airports of Thailand Public Company Limited (SET: AOT)’s implementation of the PSC hike within this January. The new rate will take effect in four months.
Previously, the CAB ordered AOT to conduct further studies to better substantiate the justification for this PSC adjustment since the rates proposed by AOT and CAAT were not aligned; CAAT proposed THB 930 per person while AOT proposed THB 1,120 per person.
The CAB instructed AOT to conduct further studies including:
1) Submit further data and documentary evidence, following International Civil Aviation Organization (ICAO) calculation standards, to substantiate their proposed rate for CAAT’s reassessment.
2) Conducting stakeholder hearings on the PSC increase, specifying the new rate and necessity for its adjustment in accordance with the Prime Minister’s Office Regulation 2005 on Public Hearings.
Manat also added that the CAAT will expedite the submitting of the proposal to lift aircraft age restrictions to the Minister of Transport in early February before the House of Representative election.
The proposal aims to lift the age limit on aircraft registered in Thailand, as previously, commercial aircraft must not be older than 16 years from the manufacturing date, 22 years for cargo planes, and 5 years for helicopters. Instead, stringent airworthiness and safety standards checks will be applied. Once the Minister signs, the proposal will take effect immediately.
Lifting aircraft age restrictions will support airline operators’ business flexibility, as manufacturing new aircraft takes at least 3–5 years. Presently, the leasing market is also short of aircraft. Maintaining aircraft age restrictions would further burden airlines at a time when air travel demand keeps rising, risking fare increases due to insufficient aircraft supply.
Additionally, the deregulation will make it easier for new airlines to enter the market, offering passengers more choices and potentially lowering fares.
The CAAT Director added that global aviation organizations like ICAO, the U.S. Federal Aviation Administration (FAA), and the European Union Aviation Safety Agency (EASA) do not impose age ceilings on aircraft, so there should be no concern that the lifting of aircraft age restrictions will affect international flight operations.
On AOT’s Phuket Airport expansion plan, there is now an additional option from a private landowner near Phuket Airport, northeast of the runway, covering around 500 rai. This party has expressed interest in leasing the land to AOT for additional aircraft parking bays and passenger terminals, potentially providing up to 50 parking bays.
The private entity will invest, while AOT leases and shares revenue. CAAT has already briefed Phiphat, who agrees in principle and has instructed CAAT and AOT to prepare further detailed information.
However, as the country is currently under a caretaker government and AOT must finalize details with the private sector, a timeline for reaching conclusions cannot yet be set.
