Anawat Leelawatwatana, Senior Vice President – Finance and Accounting at Bangkok Airways Public Company Limited (SET: BA), revealed that on June 25, the company’s Board of Directors approved an investment transaction in the newly issued ordinary shares of U-Tapao International Aviation Company Limited (UTA), with a total investment amount of THB 2 billion.
Currently, BA holds a 40% stake in UTA, a company established to develop and manage the U-Tapao Airport and Eastern Airport City Project. UTA presently has registered and paid-up capital of THB 15 billion. Due to UTA’s need to acquire assets and prepare for airport project operations, a capital increase was announced, raising its registered capital from THB 15 billion to 20 billion—an increment of THB 5 billion.
UTA is a joint venture involving three parties: BA with 40%, BTS Group Holdings Public Company Limited (SET: BTS) with 40% (also contributing THB 2 billion to the capital increase), and Stecon Group Public Company Limited (SET: STECON) with 20% (raising an additional THB 1 billion).
A UTA source confirmed that the capital increase will occur through a rights offering, where all existing shareholders, including BTS and STECON, must participate according to their respective ownership percentages—similar to BA, which has already notified the Stock Exchange of Thailand of its board’s resolution on the capital increase.
The budget allocation process for this capital increase is expected to commence in August. Initially, approval for the total committed capital will be sought, with actual share payments to be made in stages, aligned with project needs and progress. This phased payment approach is intended to optimize liquidity management and capital allocation for all shareholders.
UTA has made significant headway since receiving the Notice to Proceed (NTP) in April 2026, officially launching operations under the joint venture. The company is in discussions with the Eastern Economic Corridor Office (EECO) to adjust its initial investment plan, given the post-pandemic recovery of the aviation industry.
The revised plan scales down the initial passenger terminal to accommodate about 3 million passengers annually—down from the original 12 million. The focus will shift from an aviation-driven strategy to establishing an “Eastern Aerotropolis,” designed to support investment, tourism, and commercial activity. Construction is anticipated to start by late 2026 or early 2027, pending final regulatory approvals.
UTA’s strategy reflects the slower recovery in passenger volume, currently around 300,000–400,000 annually versus 2 million pre-pandemic. The project emphasizes the integration of the airport with nearby economic activities and infrastructure.
Construction on the airport’s second runway is progressing as scheduled, while UTA continues to coordinate with the government on the high-speed rail project linking three airports. Contingency plans, including temporary shuttle buses, have been prepared in case of rail delays.
Following this announcement, BA’s share price closed up 3.95% at THB 18.40 on June 25, marking strong investor interest.
