2024-07-04 16:04:00
AOT began to require the return of some outbound duty-free zones on July 1, and confirmed that the impact will not be significant. Increasing passenger service space has pushed Thailand’s airports into the top 20 airports in the world, and “Keerati” is confident that revenue will return to 2019 levels.
Mr. Keerati Kitmanawat, President and CEO of Airports of Thailand Public Company Limited (AOT) revealed that AOT.
The required return zone will be part of the Parties’ exit areas from 1 July 2024. Therefore, in order for Suvarnabhumi Airport to accommodate 80 million passengers per year in the next three years from the current 60 million, AOT must prepare space to accommodate more passengers. It provides passengers with more waiting space. Includes a playground and co-working space, with space for mothers and children to breastfeed. This will increase public areas to serve more passengers. The estimated budget to improve the area is approximately 100 million baht.
Although the request to return the space will impact monthly space rental income of about 90 million baht, the company is believed to be compensated with outbound passenger service charges (PSC) at a rate of 730 baht per arrival: AOT believes. . Because it has the potential to accommodate more passengers. Especially at airports where many foreigners arrive. Namely Suvarnabhumi and Phuket.
The AOT request returns the business area of the operator. As well as some government work areas in the Suvarnabhumi Airport concourse and SAT-1 building with a total area of approximately 1,097.14 square meters, located within the international passenger terminal. The total area of Phuket Airport is approximately 491.22 square meters, and the total rental area accounts for 8% of the total area.
As for the cancellation of inbound duty-free shops, it includes the cancellation of tax exemption for goods purchased by inbound passengers in duty-free shops. In line with the Cabinet resolution of July 2, 2024, Mr Keerati said AOT is ready to abolish the entry duty-free zone at every airport. Developed into a public area serving passengers. The inbound commercial area is not large, accounting for about 20% of the total commercial area. Accounting for less than 10% of outbound area revenue, it has little impact on AOT’s revenue.
At this time, we are waiting for customs to notify us when and how to begin. Negotiations will then take place with the Crown Group. This is the tenant of the space and this is contractually agreed upon, and if the area changes, the compensation stipulated in the contract will change in proportion to the area.
“Requesting the return of outbound and inbound space is in line with the policies of Prime Minister Mr Setah Thawissin, who has set the goal of propelling Thailand’s airports into the top 20 of the world’s best airports and increasing the airport’s capacity to accommodate more than 150 million passengers annually. potential to become an aviation hub.
@It is expected that the total number of passengers this year will reach the target of 120 million.
Mr. Keerati said AOT is confident that revenue will resume growth similar to 2019 in 2024 (October 2023 to September 2024), with total revenue reaching 65 billion baht and net profit reaching 25 billion baht after the first half. (October 2023-March 2024) Total revenue is 34 billion baht, with net profit of 10.3 billion baht, as the number of passengers this year is expected to reach the target of 120 million passengers.
In the eight months of 2024 (October 2023 to May 2024), the total number of passengers at the six airports will be 81.05 million, which is 83.4% higher than the number of passengers in 2019 (before the new crown epidemic) and AOT in 2025. to 140 million, which is equivalent to the level before the new crown epidemic.
Currently, 55% of AOT’s revenue comes from aviation business (Aero) revenue, while non-aeronautical business (Non-Aero) revenue accounts for 45%. In addition to leasing space, AOT also owns Airport City. , an area of 723 rai adjacent to the airport, will be concessioned for development into a conference centre, hotel or other facilities that will generate non-Aro revenue. The contract is expected to be signed next year. As for the area of 723 rai, we are currently negotiating with some entrepreneurs. Developed into a logistics park airline flight officer training center
Mr Keerati expects AOT to generate about 900 million baht/year in revenue from leasing the Airport City and 723 Rai area, which is expected to start being recognized in 2026 or 2027.
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