PATTAYA, Thailand – Acting Director-General of Airports of Thailand (AOT) Ms. Paweena Jariyathitipong revealed at the Skyconomy: Thailand’s Runways to Aviation Hub event on October 28 that AOT’s new Master Plan is ready to be submitted to the Cabinet. The plan aims to elevate Thailand into a full-fledged regional aviation hub.
A key component of the plan is adjusting the Passenger Service Charge (PSC) to not less than 200 baht, which would significantly increase AOT’s revenue for reinvestment in both aviation-related (Aero) and non-aviation (Non-Aero) projects. Previously, AOT had proposed a modest 5-baht increase, but the rate had not been adjusted for 19 years, and the minor adjustment faced delays due to pending appointments to the Airport Tariff Committee. AOT engaged consultants to determine an appropriate PSC and has proposed reviewing the PSC every five years, in line with global airport standards.
The Master Plan also includes strategic investment approaches, such as the phased development of the South Terminal, with a budget of 120 billion baht to accommodate 70 million passengers per year. AOT plans to stage the investment according to passenger growth, reducing financial strain.
The plan is expected to boost AOT’s revenue and profits, helping offset potential impacts from duty-free contracts with King Power. Regarding King Power contracts, AOT has completed a study with two main options:
- Terminate the contract and open a bidding process for a new operator, which would result in an immediate temporary loss of revenue.
- Amend the contract through negotiations with King Power. Consultants have proposed eight negotiation strategies, and AOT will select the most beneficial approach, ensuring minimum revenue guarantees and profit-sharing ratios remain above 8 billion baht per year, in line with the second-highest bidder’s proposal.
AOT expects to finalize the King Power contract resolution by November 2025.
