BANGKOK — Airports of Thailand Public Company Limited (AOT) confirms that the measure to recover the duty-free areas in the departure and arrival zones will have no impact on overall revenue and profit. New services will attract more passengers, leading to higher revenues. Even an increase in passenger numbers by 1 million can increase revenue by at least 700 million baht ($19 million).
On July 4, 2024, Dr. Keerati Kitmanawat, CEO of Airports of Thailand Public Company Limited (AOT), announced that AOT’s plan to reclaim the duty-free areas operated by King Power at Suvarnabhumi Airport (1,097.14 sqm) and Phuket International Airport (491.22 sqm), as well as additional arrival areas at six airports, will not have a material impact on overall revenue and profit.
Dr. Keerati explained that the reclaimed area is only a small portion compared to the total concession area, with the reclaimed area of Suvarnabhumi being about 8 percent. The loss of revenue from this reclamation amounts to about 50 million baht per month.
Similarly, the reclaimed area in the arrival areas of six airports accounts for about 20 percent of the total concession area, with the loss of revenue proportional to the reclaimed area.
He emphasized that there is no change to the concession agreement as it allows for compensation to be adjusted based on area changes. Dr. Keerati believes that reclaiming space for passenger amenities, such as waiting areas, work areas, rest areas, playgrounds and nursing rooms, will increase passenger satisfaction worldwide.
Ultimately, increased airport utilization will increase passenger service charge (PSC) revenues. Effective space management to attract 1 million additional passengers could increase PSC revenue by over 700 million baht.
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