Transport Ministry Undecided on Airport Transfer to AOT

Thansettakij•Economy•7d ago

Reader Briefing

Thailand's Ministry of Transport is pending a final decision on whether to transfer management of Krabi, Udon Thani, and Buriram airports from the Department of Airports (DCA) to Airports of Thailand (AOT), awaiting study results on economic viability and operational impact.

•The Ministry of Transport is evaluating the transfer of three airports from DCA to AOT for management.
•A decision hinges on studies assessing economic viability, operational impact, and shareholder interests.
•DCA is simultaneously upgrading 8 regional airports to 'Hub' status with new technologies.
•The Cabinet's original resolution for the transfer is still pending a final study outcome.

Overview

•The Department of Airports (DCA) is currently studying the cost-effectiveness and suitability of transferring three airports (Krabi, Udon Thani, Buriram) to Airports of Thailand (AOT) for management due to changes in economic conditions.
•AOT's considerations include airport revenue and shareholder interests, as AOT is a listed company requiring shareholder approval for investments and capital increases.
•DCA views airport management from a government perspective, overseeing 28 smaller airports nationwide, using a 'large airport subsidizes small airports' model.
•The Treasury Department is assisting in valuing the assets of the airports slated for transfer.
•The situation remains as per the original Cabinet resolution to transfer management rights, pending final study results.
•If studies suggest not transferring, DCA will propose canceling the original resolution to the Cabinet; proceeding to transfer is contingent on study outcomes.
•The Minister of Transport has ordered the DCA to push 7 Quick-win policies to expand airports and assist airlines in overcoming the crisis.
•The DCA plans to upgrade 8 provincial airports to 'Hub' status, including Krabi and Udon Thani, with Biometrics and Advance Passenger Screening expected by 2027.

Full article content is available on the original source.

Read on Thansettakij (Thai Version)View in Google Translate

Source: Thansettakij (Original)

Key Quotes

Minister of Transport

"If the study results indicate it should not be transferred, the DCA must propose to the Cabinet to cancel the original resolution, or proceed based on the study results."

หากผลการศึกษาชี้ว่าไม่ควรโอน ทย. จะต้องเสนอเรื่องกลับไปยัง ครม. เพื่อขออนุมัติยกเลิกมติเดิม หรือจะให้เดินหน้าต่อก็ต้องอยู่ที่ผลการศึกษาเป็นสำคัญ

Donay Rueangsorn, Director-General of the Department of Airports (DCA)

"Upgrading regional airports while awaiting a conclusion on transferring DCA's airport management rights to AOT, the DCA has a policy to upgrade its airports."

การยกระดับสนามบินภูมิภาค ในระหว่างที่ยังไม่ได้ข้อสรุปเรื่องการโอนย้ายสิทธิบริหารสนามบินของทย.ไปให้ทอท. ในส่วนของทย. มีนโยบายยกระดับสนามบินในสังกัด

Key Entities

Organization

Ministry of Transport(คมนาคม)

The ministry overseeing aviation policy and airport management decisions in Thailand.

Department of Airports (DCA)(ทย.)

The current managing body of Krabi, Udon Thani, and Buriram airports, undergoing evaluation for transfer to AOT.

Airports of Thailand (AOT)(ทอท.)

A potential new operator for Krabi, Udon Thani, and Buriram airports, which is a listed company with specific financial considerations.

Cabinet(ครม.)

The governmental body that previously resolved to transfer management rights of the airports and whose decision will be re-evaluated.

Treasury Department(กรมธนารักษ์)

An agency involved in assessing the asset valuation of airports being considered for transfer.

Aviation Development Committee(กบร.)

The committee that approved AOT's proposal to increase passenger service charges (PSC).

Place

Krabi(กระบี่)ℹ️

An airport in Thailand whose management is being considered for transfer from DCA to AOT.

Udon Thani(อุดรธานี)ℹ️

An airport in Thailand whose management is being considered for transfer from DCA to AOT, and is planned to be upgraded to a 'Hub'.

Buriram(บุรีรัมย์)ℹ️

An airport in Thailand whose management is being considered for transfer from DCA to AOT.

Bueng Kan Airport(สนามบินบึงกาฬ)

A new airport project for which the Department of Airports is preparing to submit a proposal to the Cabinet for construction to begin in 2029.

Surat Thani(สุราษฎร์ธานี)ℹ️