Thread: AOT: New Airport Tax

Only in Thailand,

AVIATION
INCREASED AIRPORT CHARGES AND NEW SERVICES
International aviation groups criticise AoT
Airlines forced to pay for airport ‘mistakes’
BOONSONG KOSITCHOTETHANA

Geneva — Airlines are up in arms about plans by Airports of Thailand Plc (AoT) to raise user charges to pay for expanding Suvarnabhumi Airport and improving its flawed infrastructure.

The International Airport Transport Association (IATA), which represents 240 airlines, said it was unfair to pass on the charges to carriers and passengers.

‘‘It’s negative,’’ said IATA directorgeneral Giovanni Bisignani.

‘‘From our point of view, airlines should not pay for the mess, inefficiency and mistakes that [AoT] made,’’ added Jeff Poole, director for charges, fuel and taxation at IATA. ‘‘We are very happy to pay for cost-efficient infrastructure.’’

The two senior IATA executives were responding to the Thai airport monopoly’s plan to increase landing and parking fees and even passenger service charges, to cover higher costs arising at Suvarnabhumi, which opened in September 2006.

AoT also wants to raise funds to finance the estimated 67 billion baht that would be needed for Suvarnabhumi’s planned phase one expansion — construction of a mid-field terminal and a third runway, to raise the capacity to 60 million passengers a year from 45 million.

IATA has been critical of airport service charges that were increased earlier this year. The hikes included a 15% rise in landing and parking fees in April and a 40% increase in passenger service charges for international flights and the doubling of passenger charges for domestic flights to 100 baht in February.

IATA had earlier categorised AoT as one of the worst offenders, in addition to airport operators in Paris, London, Argentina and Auckland, for abusing its monopoly.

It also named Bangkok as one of three airports, together with Paris and Heathrow, contributing to the bulk of airport cost increases for IATA members. The fee hikes, as well air traffic growth, helped push AoT’s operating revenues in the fiscal year to Sept 30 up by 20% to 19.5 billion baht, boosted by a 28% rise in aeronautical revenues to 2.9 billion baht.

But AoT saw its net profit for the year nose-dive 90% year-on-year to 1.09 billion baht, the lowest in five years, due mainly to the negative effects of the 155-billionbaht Suvarnabhumi Airport.

Mr Bisignani warned that further increase in charges would undermine Suvarnabhumi’s bid to become a regional air hub, losing out to Singapore Changi Airport and Kuala Lumpur International Airport which impose ‘‘reasonable’’ charges.

‘‘They have to understand that increasing charges will deter planes from arriving there (Suvarnabhumi),’’ he said.


Mr Poole insisted that AoT cover the financial burdens and that the Thai government, which owns 70% of AoT, pay for the problems.

The IATA director-general pointed out that many airports have earlier this year reduced charges — Buenos Aires with a 20% landing fee reduction, Toronto a 3.1% decrease in landing charges, and Seoul a 10% cut instead of a proposed 86% increase.

IATA called on the Thai government to revamp the inefficient structure and management of AoT to move forward.

‘‘You’ve got to have world-class management running that airport, and with the freedom and authority to make changes,’’ Mr Poole said.

Originally Posted by Butterfly

155-billion baht Suvarnabhumi Airport.

They actually spent about a half of that figure, despite the budget being 155 Billion. I wonder where the rest went?

Originally Posted by Butterfly

You’ve got to have world-class management running that airport

Oh dear - that's unlucky then.

Originally Posted by Marmite the Dog

Originally Posted by Butterfly

155-billion baht Suvarnabhumi Airport.

They actually spent about a half of that figure, despite the budget being 155 Billion. I wonder where the rest went?

Yes but they haven't finished the interior. Exposed pipes and wiring, water running down the walls, inadequate facilities.

‘‘From our point of view, airlines should not pay for the mess, inefficiency and mistakes that [AoT] made,’’

well the alternative ( responsibility for own actions ) ain't gunna fly well ...........

Eriksson

Elano

Petrov

Manchester in general

Originally Posted by Marmite the Dog

I wonder where the rest went?

Hmmmmmm Thats a real hard one to answer...

It's all the foreigners fault, make them pay.

I'm still waiting for the other shoe to drop - the increase in departure tax to pay for the noise issue with local residents. I do believe we are all gonna take it in the shorts on that one.

Someone has to pay for all of the kick backs, stolen money and lavish lifestyles of the criminals involved in the airport construction.

Not to mention all of the monks that were paid a load of dosh to chant and mumble to bless the place and get rid of the airports haunting "spirits".