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Private management of airports

By WATCHARAPONG THONGRUNG

THE NATION

BANGKOK: -- Transport Minister Sophon Saram has ordered state agencies to study ways of permitting a private company to manage upcountry airports following a proposal from Bangkok Airways.

He made the remark yesterday after chairing a meeting of the agencies gathered to discuss problems in managing domestic airports, especially airports with no regular flights, as well as the problems of domestic airlines.

He said the ministry had to examine the legal aspects of allowing private companies to manage domestic airports. If it is determined to be permissible, the ministry will invite interested companies to come up with proposals.

At present, the Aviation Department operates upcountry airports, which have racked up financial losses.

The ministry plans to ask Airports of Thailand to step in and take over management.

The department has hired PricewaterhouseCoopers FAS to study how to tackle financial losses in the operation of upcountry airports.

Bangkok Airways has since 1992 been offering to manage all of the department's airports, but its proposal has yet to be considered.

There are 10 airports upcountry with no regular flights: Tak, Phetchabun, Loei, Nakhon Ratchasima, Nan, Mae Sariang, Surin, Roi Et, Chumphon and Ranong.

The department has already cut airport fee and landing fee to attract small airlines to operate at the airports. It is ready to further cut or waive the fees to help them reduce their operation cost.

-- The Nation 2010-02-06

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