THAILAND. The Department of Air Transport (DAT) has said it plans to submit a proposal on transferring 26 provincial airports to Airports of Thailand (AOT) because AOT is likely to be more capable in pushing those airports to gain more profits.
DAT director general Chalor Kotcharat said the AOT is capable of administrating the 26 airports in addition to its existing five major airports in Chiang Mai, Chiang Rai, Hat Yai, Phuket and Bangkok. The government is also hoping the transfer will help boost AOT’s forthcoming share sale.
The Thai government is cutting its stake in AOT by 30% to 70% through an initial public offering (IPO) scheduled for first quarter 2004, the first step in the privatisation of Thai airports. It was first thought the 26 provincial airports currently managed by the Department of Civil Aviation (DCA) would be privatised under a separate exercise, with one Thai-only company or group named to manage the facilities.
Eight of the regional airports are located in the Northern region, and nine each in the Northeastern and Southern areas. Six airports (Khon Kaen, Udon Thani, Phisanulok, Surat Thani, Ubon Ratchtani and Nakhon Ratchasima) have high potential for development and growth, according to the DCA, whilst three (Mae Hong Son, Lampang and Nakhon Si Thammarat) have some potential, and five more (Trang, Ranong, Narathiwat, Nan and Nakhon Panom) can be developed. The remaining 12 loss-making airports are believed to have no potential for development.
