Bangkok's New Airport `wasn't Ready', Ex-chief Say

[jumbo2]

Feb. 2 (Bloomberg) -- Bangkok's four-month-old Suvarnabhumi

airport ``wasn't ready'' to replace Don Muang, according to the

president of operator Airports of Thailand Pcl, who resigned

today amid probes into taxiway cracks and construction flaws.

``We really rushed construction to open it and it was not

ready to be fully utilized or opened at that time,'' Chotisak

Asapaviriya, who quit citing health reasons, said in an

interview today in Bangkok. ``Suvarnabhumi airport is huge. It

needed much more time than we spent to make it complete.''

Suvarnabhumi, Southeast Asia's busiest airfield, has been

beset by problems since it opened on Sept. 28, forcing Airports

of Thailand to consider using the old Don Muang airfield for

some domestic flights in March. The company is using a fleet of

buses to ferry passengers between planes and the terminal

because cracks in the taxiway have cut the number of usable

gates to 40 from 51.

Former Prime Minister Thaksin Shinawatra, who was ousted in

a coup Sept. 19, pushed to open Suvarnabhumi by its revised

deadline as a ``national priority''. The junta which seized

power kept to his schedule and opened the facility, reassuring

airlines and travelers the airport was ready.

Shares of Bangkok-based Airports of Thailand fell as much

as 1.9 percent to 52 baht in Bangkok, set to halt a three-day,

11 percent gain. The stock has fallen about 10 percent since

Suvarnabhumi opened.

``In the medium to long term, there shouldn't be much of an

implication'' from Chotisak's resignation, said Sukhbir

Khanijoh, an analyst at Kasikorn Securities Ltd., with a ``buy''

rating on the stock. Airports of Thailand's ``performance

doesn't depend on one or two persons.''

Back to Don Muang

The junta-appointed government on Jan. 30 said it plans to

reopen the 92 year-old Don Muang airfield for some domestic

flights to ease congestion at Suvarnabhumi. The new airfield is

expected to fill its 45 million annual passenger capacity in its

first year of operations, before repair works hampered flights.

``I urged the previous government including the Prime

Minister to gradually open the airport, to use Suvarnabhumi in

conjunction with Don Muang so we could evaluate problems,''

Chotisak, 53, said. ``I'm not an engineer to know the cause of

the cracks, but anything that you rush to construct, you won't

get the best quality.''

Chotisak denied today he was pressured to quit after the

cracks were discovered in taxiways at the four-month-old

airfield. ``The doctor recommended that I should rest for a

while.'' He said he was ``not at all'' pressured to step down

amid a probe into damaged taxiways.

Acting President

Kulya Pakakrong, senior executive vice president for

planning and finance, was appointed by the board of directors

yesterday to serve as acting president, Airports of Thailand

said in a statement to the country's stock exchange today. The

board accepted Chotisak's resignation, it said.

``Right now, I'm so confident the runway isn't a serious

problem,'' Chotisak said. ``The taxiway is a problem, but it can

be repaired. It happens everywhere, not only in Thailand.''

Chotisak, who started as president in April 2006 for a

four-year term, said he told Airports of Thailand Chairman

Saprang Kalayanamitr three months ago of his plans to step down.

``I told him so many times that I'm not really in good health.''

Since the airport's opening, Chotisak said he lost 14

kilograms (31 pounds) because of stress and suffered high blood

pressure. Before the airport's opening, he weighed about 95

kilograms, he said.

The company has not confirmed news reports, including the

Bangkok Post and Agence France-Presse, that the board sacked

airport general manager Somchai Sawasdeepon yesterday.

The panel investigating the cracks will report their

findings to the transport ministry Feb. 16, Airports of Thailand

said in a press release distributed at a media briefing at

Suvarnabhumi today.

`The Golden Land'

Suvarnabhumi, which means ``The Golden Land'' in Thai, was

first conceived in 1960 and built from a 1994 design, before

budget airlines existed in Asia. Initially designed to cater

only to overseas traffic, both domestic and international

flights were shifted to Suvarnabhumi in September. Its 51 gates

compare with 56 at the Don Muang airfield.

The new airport has two parallel runways and the same

number of taxiways. It has a total of 120 parking bays and five

of its gates are capable of accommodating the A380, the world's

biggest commercial aircraft, made by Airbus SAS.

The company's shareholders in a Jan. 26 meeting approved

granting each board member, including its president a 1.2

million baht ($34,000) bonus for the fiscal year ended Sept. 30.

Chotisak said the fact that he stepped down after the bonus

was a coincidence. The bonus ``is just peanuts,'' he said.

``What I care about is my success and the success of my work.''

Headhunters have approached him for work that would pay

more than 2 million baht ($57,000) a month by companies from

Austria and Singapore, which are planning to set up offices in

Thailand, Chotisak said. He has deferred plans to work soon to

spend time with his four children.

State-controlled Airports of Thailand operates four

international airfields other than Suvarnabhumi and Don Muang.

The airport operator yesterday raised service charges for

all departing passengers to boost revenue. The fee for

passengers on international flights rose 40 percent to 700 baht

and passengers on domestic flights will pay 100 baht, double the

previous charge.

Analysts at Credit Suisse Group and DBS Vickers Securities

(Thailand) Ltd. have raised their recommendations on the airport

operator's shares this week, advising investors to buy because

the stock price was cheap.

[gummy]

Good to know that this spineless, Thaksin lacky is now admitting the obvious after getting kicked out. Isn't it amaasing how maybe a few hundred million baht in a Swiss bank account can improve the morality of these characters.

[salty]

Hopefully his replacement will not be another poodle.

[wpcoe]

Initially designed to cater only to overseas traffic, both domestic and international flights were shifted to Suvarnabhumi in September. Its 51 gates compare with 56 at the Don Muang airfield.

Two interesting facts I hadn't come across before: Initially (when did the design change?) designed only for overseas flights and it has FEWER gates than Don Muang???

[britmaveric]

Not ready, tell us something we didnt already know.

[Sunbelt Asia]

Not ready, tell us something we didnt already know.

High sources are saying today that the new airport will be 100% closed for 18 months to fix the runways. Don Muang will be ready in 45 days and then the announcement will take place.

Lets see if they turn out to be right.

www.sunbeltasiagroup.com

[britmaveric]

Not ready, tell us something we didnt already know.

High sources are saying today that the new airport will be 100% closed for 18 months to fix the runways. Don Muang will be ready in 45 days and then the announcement will take place.

Lets see if they turn out to be right.

www.sunbeltasiagroup.com

Well I hope that is the case - its a disaster waiting to happen. Better to close it fully and do things properly than the alternative.

[gummy]

Well if it does close for 18 months then wouldn't it be good if they could also fast-track the transportation system so that passengers could get to/from the airport without resorting to high price taxis or clogged expressways

[lomatopo]

Initially designed to cater only to overseas traffic, both domestic and international flights were shifted to Suvarnabhumi in September. Its 51 gates compare with 56 at the Don Muang airfield.

Two interesting facts I hadn't come across before: Initially (when did the design change?) designed only for overseas flights and it has FEWER gates than Don Muang???

The old airport (Don Muang) had a total of 95 gates: 33 fixed (25 for int'l., 8 for domestic) and 62 remote.

The new airport (Suvarnabhumi) has a total of 120 gates: 51 fixed and 69 remote. (Admittedly some of the fixed gates are currently un-usable.)

Remember that one of the runways at DMK (21R/03L) is currently unusable and needs to be repaired. DMK cannot be ready, i.e. handle 100% of the traffic, before 1 May.

Seems like AoT will have to ask carriers to selectively reduce traffic. Ouch.