Slight Losses Expected From Low-Cost Carrier Relocation

[Lite Beer]

AIRPORT MANAGEMENT

Slight losses expected from low-cost carrier relocation

The Nation

BANGKOK: -- Airports of Thailand Plc expects to show a small decline in earnings, following a special discounts offered to low-cost airlines as incentives for relocation from Suvarnabhumi Airport to Don Mueang Airport.

Bualuang Securities said in its research note that AOT has agreed to provide discounts on landing and parking charges and rental fees) to low-cost carriers (LCCs) to return to Don Mueang Airport. The management estimated that earnings would decline by Bt245 million during the fiscal years 2013-2015 under the worst-case scenario where no additional traffic uses the freed up capacity at Suvarnabhumi Airport.

"That would be much shallower than our assumption of a Bt900 million profit fall."

Don Mueang’s soft opening is slated for August and it is expected to start a full-scale service by October. The biggest low-cost airline in focus is Thai AirAsia, which caters services to 8 million passengers per annum.

"If all the low-cost carriers were to relocate, passenger capacity at Suvarnabhumi Airport equal to 11 million people would be freed up. The potential earnings accretion would more than offset the impact of the discounts offered. Don Mueang could potentially cater to more 21.5 million people after the relocation. This plan would reduce AOT’s capital expenditure needs of Bt12 billion for the construction of domestic terminal at Suvarnabhumi Airport," the house said.

-- The Nation 2012-06-25

[thaicbr]

I wonder if they have thought of a way to get passengers from swampy to Dm to catch their regional flights?

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[E1717007]

I wonder if they have thought of a way to get passengers from swampy to Dm to catch their regional flights?

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i m sure market will respond according, plenty of business for min van and taxi!

[kartman]

I wonder if they have thought of a way to get passengers from swampy to Dm to catch their regional flights?

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i m sure market will respond according, plenty of business for min van and taxi!

Yes there will be ten minibus convoys every 30mins with Police Escorts lots of flashing lights, all other traffic will have to give way and stop.

[IsaanUSA]

I wonder if they have thought of a way to get passengers from swampy to Dm to catch their regional flights?

Book THAI or Bangkok Airways for your regional flight. Problem solved.

[hellodolly]

I wonder if they have thought of a way to get passengers from swampy to Dm to catch their regional flights?

Book THAI or Bangkok Airways for your regional flight. Problem solved.

And if your going international you can book your luggage straight through. Not like the low cost airlines where you have to pick it up and check it in again. Plus you will get real service not some one trying to sell you a bottle of water.

[naboo]

Soft opening in August? I thought Nok Air had already moved back?? Just booked flights from Surat to Bangkok assuming Nok Air will be landing at Don Muang. Can anyone confirm? I'd contact Nok Air, but their response will probably never happen.

[thaicbr]

I wonder if they have thought of a way to get passengers from swampy to Dm to catch their regional flights?

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i m sure market will respond according, plenty of business for min van and taxi!

My point was if AOT had thought of doing something. Swampy to DM would be about 400b by Taxi. So a bus service would be more appropriate.

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