Paweena Jariyathitipong, Chief Executive Officer of Airports of Thailand Public Company Limited (SET: AOT), revealed to “Kaohoon” that AOT has completed the process of increasing Passenger Service Charge (PSC), including promptly replying to official correspondence and preparing data for the Civil Aviation Authority of Thailand (CAAT).
However, the process is delayed at CAAT, causing the documents not to be forwarded to Phiphat Ratchakitprakarn, Deputy Prime Minister and Minister of Transport, for signature. She confirms that the caretaker minister has authority to sign because it concerns state enterprise revenue generation rather than budget commitments.
If the PSC increase is approved, AOT will be able to fully recognize the income from the hike in the fiscal year 2027, leading to significant profit growth.
Earlier, the Civil Aviation Board (CAB) resolved to approve the increase in international outbound PSC by AOT from THB 730 to THB 1,120 per person, an increase of THB 390, reflecting costs and long-term airport infrastructure development.
AOT expects around 35 million international outbound passengers per year, with the new rate set to take effect this year four months after ministerial approval. Full year revenue from the new rate can be recognized in 2027, which will significantly strengthen AOT’s revenue and financial position.
Regarding the progress of the third operator for the Suvarnabhumi ground equipment parking and cargo warehouse project, valued at THB 67 billion, the matter is currently under review at the Office of the Attorney General, which has already been 3 months since October, with the expectation that it will be released soon to be submitted to the Cabinet for consideration. The Cabinet can also approve the project as it concerns revenue generation, not budget expenditure.
The third ground handling and cargo services operator at Suvarnabhumi Airport is AOTGA (Airports of Thailand Ground Aviation Services Co., Ltd.), a joint venture in which AOT is the major shareholder, selected by the company to provide both ground handling and cargo services under the PPP Net Cost contract worth more than THB 67 billion for 25 years.
AOT holds 49% of AOTGA shares and SAL Group (Thailand) Co., Ltd. (SAL) holds 51% (Sky ICT Public Company Limited (SET: SKY) holds 46.8% of SAL, Triple i Logistics Public Company Limited (SET: III) holds 25.46%, and My Box Co., Ltd. holds 13.6%), making SKY’s stake in AOTGA about 24%.
On January 6, AOT shares closed at THB 51.50, a 5.5% drop with a total trading value of THB 3.14 billion.
Paweena added that AOT’s early-year drop was mainly due to temporary factors such as investors’ profit-taking action, fund outflows toward stocks about to pay dividends after AOT’s dividend payment on December 12, and market misunderstanding regarding the delay in approving the PSC increase, which some analysts cited as a concern for project progress.
AOT has postponed roadshow plans despite strong invitations from foreign investors. AOT decided not to conduct a roadshow now to avoid pushing the share price beyond its fundamental value, likening it to “wearing high heels,” which could stumble easily. The company intends to build solid foundations first, such as driving PSC project approval and readying new projects.
The key strategy is to present factual information on operations and completed projects to investors, fostering understanding and encouraging long-term stable shareholding. The goal is to ensure the share price reflects fundamentals and achieves sustainable growth, rather than short-term price boosting.
