Ms. Paweena Jariyathitipong , Senior Executive Vice President (Engineering and Construction) and Acting President of Airports of Thailand Public Company Limited (SET: AOT) revealed in AOT Property Showcase: The Six Pillars of Opportunity that the company is welcoming private sector to invest in the developing areas and provide service within six Thailand airports, under AOT’s operation.
These airports are Suvarnabhumi Airport, Don Mueang International Airport, Chiang Mai International Airport, Mae Fah Luang – Chiang Rai International Airport, Phuket International Airport, and Hat Yai International Airport, and have the total developing area of 2,512 rai, or about 4.03 million square meters. 681 rai of which is freehold area, while the remaining 1,831 rai is leasehold area, accounting for 73% of the THB 28.8 billion development project’s value.
Both areas will be under long-term lease with a concession period of maximum 30 years to support all types of investment, such as a construction of a logistic center, warehouse, hotel, convention center, market center, hospital, or sport center. This includes the new project for an airport that is under a feasibility study to align with sustainable growth of the business.
AOT also has several development plans in every aspect, including on the landside area (such as parking lot, check-in, and baggage claim), the airside area (such as security checkpoint and parking bay), and the runway to support the increased volume of passengers, flight, and cargo. The purpose for these developments is to lift the airport’s capability.
Currently, 70% of the company’s land has high-potential grade, with Suvarnabhumi Airport owning 40% of this land. Meanwhile, Mae Fah Luang – Chiang Rai International Airport has a large vacant area that can be developed in the future and suitable for commerce projects, such as the hotel and entertainment complex, similar to Inspire complex near Incheon International Airport in South Korea.
This land can develop several types of development, depending on the business. The area within the airport can support business that is related to air travel, such as training centers or hotels. Meanwhile, the land located around the airport can support development that assists the air traveling business, such as office buildings, warehouses, logistic centers, or entertainment centers.
On the loaning detail, there are short term loans that last 3 to 5 years, meant for small businesses such as coffee shops, and long term loans lasting 10 to 20 years, meant for businesses that aim for a payback period. The duration of loaning will depend on the value of investment and project’s characteristics.
Some areas can be used for development immediately. There is a speculation that the interested investor will begin development before this year’s end. AOT stated that it is ready to cooperate with all types of investors, who propose suitable agreements.
Nonetheless, the company is currently studying and waiting for approval from the cabinet, especially for the big development, such as the South Terminal, which may need an adjustment in the budget’s details and worthiness.
As for the overall development in each airport, Suvarnabhumi Airport is preparing the East Expansion, developing the South Terminal to support the increasing passenger volume, creating more parking bays, and installing modern technology, such as PVS and biometric system.
Don Mueang International Airport is constructing a third terminal for international flight, improving the existing terminal, addressing the traffic issue, and setting general aviation to support private jet and luxury class’s passenger.
Phuket International Airport is preparing to expand its terminal for international flight to support large volumes of flight and passenger, and accepting seaplane concepts to connect several islands for special customers.
