Speaking at the Skyconomy: Thailand’s Runways to Aviation Hub seminar on October 28, 2025, hosted by Bualuang Securities (BLS), Ms. Paweena Jariyathitipong, President of Airports of Thailand Public Company Limited (SET: AOT), revealed that the new Master Plan to lift Suvarnabhumi Airport to become a full-fledged regional Aviation Hub is now ready to be submitted to the Cabinet.
To develop AOT’s airports into the regional aviation center, adjusting the Passenger Service Charge (PSC) is crucial. This will increase AOT’s revenue for further investments which will generate ramp up income for aviation businesses (Aero), one of AOT’s twin engines of income along with non-aviation businesses (Non Aero). As a company focusing on aviation business, AOT is aiming to lift its revenue contribution of its Aero business from 50% to around 60%, leaving Non Aero with 40%.
Currently, AOT has submitted details to the Civil Aviation Authority of Thailand (CAAT) proposing a PSC increase to no less than 200 baht, up from the previously proposed 5 baht. This is because AOT has not adjusted the PSC for 19 years, and the proposed 5 baht increase was delayed due to the board appointment process. AOT also requested CAAT to consider reviewing the PSC every five years, in line with global airport standards.
At the same time, AOT will adopt a prudent investment approach. For instance, the South Terminal construction project, budgeted at 120 billion baht and designed to support 70 million passengers per year, will be invested in phases, according to passenger growth, to minimize the burden on AOT.
To generate higher income to cover operation cost and premium for investment, AOT also plans to adjust its landing and parking charge. The collection will be based on aircraft size, a standard procedure used in global airports, instead of aircraft weight in the present.
Additionally, it is believed that these plans will help increase AOT’s revenue and profits and compensate for the impacts from the duty-free (King Power) contract.
Regarding the progress of resolving the contract issue with King Power Group, the study has been completed and will be presented to the AOT Board of Directors today (October 29, 2025). There are two main options:
1) Terminate the contract and open a new bidding round for operators, which would immediately result in lost revenue for AOT for several months;
2) Amend the contract by negotiating with King Power, for which the consultant has proposed eight options.
AOT will select the most beneficial approach, but it is accepted that both the minimum guaranteed income and the revenue share will certainly decrease. However, it will not fall below 8 billion baht per year—this is the rate previously proposed by the second-highest bidder, the Bangkok Aviation Lotte Duty Free Joint Venture (Suvarnabhumi Airport). The King Power contract is expected to be resolved by November this year.
