Passenger And Airline Charges

[womble]

Airport authority won’t hike rates until 2007

BANGKOK, Sept 3 (TNA) - As an incentive to promote the use of Suvarnabhumi International Airport, the Airports of Thailand Pcl. (AOT) will not introduce new, higher rates on aircraft and passenger service charges until next year.

AOT had initially planned to introduce new rates upon Suvarnabhumi’s official opening on 28 September.

Airport tax for international and domestic flights will remain for the time being at 500 and 50 baht a person respectively. They will be increased to 700 and 100 baht in February 2007.

The deadline for a 15 per cent increase in commercial airlines’ landing and parking fees has also been pushed back from later this month to April 2007.

AOT President Chotisak Asapaviriya is confident that the decision will not significantly hurt the company’s earnings. In compensation, a greater number of passengers and flight traffic are expected to pass through the new airport, which should help bolster revenues.

In the third quarter of 2006, AOT reported operating revenues of 3.95 billion baht and a net profit of over two billion baht, representing a 171 per cent increase from the same period in 2005. The sharp rise was due to a significant increase in passenger numbers and flight traffic.

Nevertheless, operational expenses rose by nearly 260 million baht in the three month period ending June 30, due to the hiring of additional employees and marketing expenses incurred in preparation for Suvarnabhumi’s opening.

The operational expenses were offset by exchange rate earnings as the baht tested six-year high against the dollar, and by a reduced corporate tax burden.

On the Stock Exchange of Thailand, AOT shares closed Friday traded at 57 baht per share, up one baht for the day as investors remain confident that Suvarnabhumi will open on time. Four international test flights ended successfully Friday, improving investor sentiment.(TNA)-E007