AoT subsidiary may handle small airports
Airports of Thailand Plc (AoT) is studying the idea of creating a subsidiary to operate small airports that will be handed over by the loss-ridden Department of Airports (DoA) under the government’s plan to stabilise state coffers.
AoT president Kirati Kijmanawat said yesterday the planned subsidiary would be set up as a state-run unit with AoT and the Vayupak Fund among its main shareholders. It would not be open to private investors because its operations will involve state assets.
The AoT president said the plan is being studied and is expected to take no more than six months to complete.
The agency is preparing for the transfer of small local airports from the department, as per government policy. It is in the process of acquiring the first three airports — in Buri Ram, Udon Thani and Krabi provinces — which were approved by the previous government.
The AoT has set aside around 10 billion baht to overhaul the airports.
Mr Kirati added the AoT is also waiting for approval from the Civil Aviation Authority of Thailand to complete the transfer of the three airports.
The subsidiary will take 25 small airports from the department in the provinces, although the AoT president said it did not commit to taking them all. That would depend on their business potential and endorsement from AoT shareholders.
He identified airports in Khon Kaen, Trang, Nakhon Si Thammarat, Phrae, Nan and Mae Hong Son provinces as having a high potential for commercial development as they serve both locals and tourists.
Mr Kirati said the AoT’s role in developing the small airports would not weaken its financial standing.
He explained that the airports meet the standards for commercial operations and do not need to be expanded in size. “They can function effectively and provide an optimum service as small airports,” the AoT chief said.
One airport that will not be transferred is located in Tak province, as it is used only for artificial rainmaking, he said. In all, the subsidiary would have the right to manage and operate 28 airports around the country.
Due to operating losses at its airports, the government has had to fork out up to 4 billion baht from the annual state budget to aid the department.
The AoT chief said DoA staff can either be transferred to the Transport Ministry or apply to work at the subsidiary after the takeover.