THAILAND. State-owned Airports of Thailand generated THB 7,394.38 million (US$234 million) in non-aeronautical revenues for the three-month period ended 31 March 2019, up 5.39% year-on-year and representing 43% of group income.
Concession revenues (mainly from King Power International’s duty free and related businesses) made up 63% of non-aeronautical income in the second quarter, and increased 5.09% to THB4,681.18 million (US$148 million). The increase was primarily attributable to passenger traffic growth.
As reported, Airports of Thailand is currently tendering duty free contracts at four of the six airports it controls: Bangkok Suvarnabhumi (in a separate contract) as well as at Chiang Mai, Hat Yai and Phuket. The tender is scheduled to be completed this month.
Aeronautical revenues rose 4.59% to THB9,727.05 million (US$308 million). Airports of Thailand generated overall net profit of THB7,646.50 million, an increase of 5.18%.
Airports of Thailand also announced that Squadron Leader Prajak Sajjasophon had reached full retirement age of 65, and had vacated his position as a director (as of 12 May). The company will consider the nomination of a replacement director in due course.
In the six month period ended 31 March 2019, traffic at the operator’s six airports rose by 2.67% to 74.32 million, comprising 43.61 million international and 30.71 million domestic passengers.
Airports of Thailand noted that the country’s overall aviation industry had improved during October 2018-March 2019 compared to the year-before period. “Even though the global economy shows signs of slowing down, the public sector still uses proactive continuous measures for actively stimulating tourism by extending the exemption period of the visa-on-arrival fee for tourists to 30 April 2019.
“As a result, the number of tourists increased. Chinese tourists are still the main nationality travelling to Thailand. Furthermore, the ongoing expansion of low cost airlines leads to price competition. This benefits air travellers due to cheaper air fares and more the diversity of flight routes. It is positively benefiting both the aviation industry and the overall economy of Thailand.”
Looking ahead, the company said “intense competition” in the aviation industry and the increased demand for air travel required Thailand’s airport services to be developed, and in particular the country’s infrastructure. “As part of this ongoing process, Airports of Thailand has been continuously improving and enhancing its six airports so that passengers can receive good services, standard facilities and an adequate infrastructure that will result in convenient and quick airport services,” the operator said.
Airports of Thailand also noted a strategy to generate revenue from digital platforms, which it said would provide “comprehensive travel services”.
