Airports of Thailand Public Company Limited (SET: AOT) plans to formalize two Suvarnabhumi Airport service agreements with AOT Ground Services Company Limited (AOTGA) on October 8, 2026, with a combined value of THB 67,305.32 million. The projects will expand ground handling and cargo capacity, generating revenue-sharing payments for AOT while supporting growth in airport traffic.
AOT President Paweena Jariyathitipong outlined the signing timetable after Thailand’s Cabinet endorsed the private partner selection and draft public-private partnership contract. The arrangements introduce a third provider of ground handling, ramp equipment and cargo services to support longer-term increases in flights, passengers and freight.
Cargo services account for THB 37,914.56 million of the combined project value. Of that amount, THB 1,318.38 million is allocated to building work, equipment and systems, while THB 36,596.18 million covers operations and maintenance during the 25-year project.
The other agreement covers ramp services, ground support equipment, passenger handling on the ground and related activities. Its THB 29,390.76 million budget will be financed entirely by the private sector. Construction, machinery and equipment account for THB 1,608.76 million, with a further THB 27,782.01 million assigned to operating and maintenance costs across a 25-year operating term.
Together, the projects are intended to strengthen Suvarnabhumi’s ability to handle expanding flight schedules and rising passenger and cargo volumes over the longer term.
AOT owns 49% of the service company, with SAL Group (Thailand) holding the other 51%. SAL’s shareholders include Sky ICT Public Company Limited (SET: SKY), with 46.8%; Triple i Logistics Public Company Limited (SET: III), with 25.46%; and MyBox, with 13.60%. Through that ownership chain, SKY has an indirect interest of approximately 24% in AOTGA.
Ramp operations could begin in early 2027 at the soonest. The anticipated start aligns with the mid-winter flight scheduling period, within the seasonal window running from late October through January.
Before launching, AOTGA must secure airline customers. Those airlines will need to examine its operations and confirm that service standards meet their requirements, making customer acquisition and verification necessary steps in the preparations.
Cargo operations have a longer development schedule. After the agreements are signed, AOT expects to take roughly three months to issue the notice to proceed. AOTGA would then have 18 months to build the cargo facility under the contract, putting the overall interval before services can start at approximately 21 months.
AOT’s initial receipts from the projects will depend entirely on revenue sharing. Although both agreements also provide for minimum guaranteed payments, those obligations begin only when AOTGA obtains customers or achieves service volumes that satisfy the contractual requirements.
The payments will fall within AOT’s non-aeronautical revenue. Greater service availability, particularly for ramp operations, is also expected to accommodate additional flights, increasing landing and parking fees as well as passenger service charges. AOT will separately earn income through its equity interest in AOTGA.
AOTGA’s contracts will carry financial consequences for missing specified key performance indicators. Depending on performance against the required thresholds, enforcement can extend from monetary penalties to termination of the agreements.
AOT intends to incorporate the same penalty provisions into the forthcoming tender for the airport’s second service provider. That would leave Thai Airways International Public Company Limited (SET: THAI) as the sole operator whose contract includes performance indicators but no financial penalties for failing to meet them.
The airport company is also developing and rehearsing contingency procedures to reduce operational risks. The preparations address the possibility of disruptions similar to those in late September, when THAI could not deliver ground handling services at Suvarnabhumi. That episode resulted in a backlog of 10,000 passenger baggage items awaiting handling.
