Investment Drop for Thai Airports
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Investment Drop for Thai Airports

BANGKOK, Thailand—Thailand’s airports may see a drop in investment over the next five years due to a decline in construction costs, according to a statement made by Airports of Thailand (AOT.BK), the country’s leading airport operator.

Pending the final decision on the company’s finance projections by November, AOT projects that the investments to be made over the next five years should cost less than 80 billion baht ($2.39 billion).

Included in AOT’s five-year plan would be the expansion of Bangkok’s Suvarnabhumi Airport, which involves the construction of a domestic terminal and a third runway. A total of 6 billion baht will be spent to increase the capacity of Thailand’s major airport, currently servicing 40 million passengers a year.

AOT also plans to be able to double the capacity at Phuket Airport so that it can maximize its services, with a projected cost of 5.8 billion baht.

Company President Serirat Prasutanond has confirmed the investment review in line with the company’s five-year plan. "We will review our investment plans and want it lower. Construction costs have come down in line with weak demand and the poor economy. It should be a good opportunity for us," he said in a recent interview.

AOT is a majority state-owned firm, operating the country’s six main airports—Suvarnabhumi and Don Muang in Bangkok, Hat Yai, Chiang Mai, Chiang Rai and Phuket—and is responsible for 90 percent of Thailand’s air traffic. The company’s stock shares witnessed a 47 percent increase over the past three months.