Bt1.6bn budget endorsed for old airport renovation

 

 

 

 

 

Under the budget requested by Airports of Thailand Plc, the airport operator, it will cover the improvement of east and west runway surface and infrastructure. 

Deputy Government Spokesman Chalitrat Chandrubeksa said that after the renovation, Don Mueang will be ready for low-cost airlines and serve both domestic and point-to-point international flights. 

"The prime minister has the policy to have two Bangkok airports as fully utilised as possible. Related ministries and agencies have also be prepared for the relocation of airlines to this airport," he said.

The 14 airlines to operate at the old airport operate both scheduled flights and chartered flights. Reopening Don Mueang Airport will help reduce the number of passengers at the new airport, Suvarnabhumi, by 7-8 million per annum. 

Don Mueang suffered from high-level flood last year. Meanwhile, Suvarnabhumi Airport is now catering service beyond its capacity, when the number of passengers last year exceeded 46 million while its maximum capacity was 45 million per annum. The new airport is also now closing the east runway for maintenance, the first time since opening in 2006. Don Mueang has so far served domestic flights. 

Reopening the old airport for international flights is one condition set by Thai AirAsia, the low-cost airline which is courted to move to Don Mueang to reduce congestion at Suvarnabhumi Airport.

CIMB Securities (Thailand) said in its research note, released today, that Thai AirAsia (which carried 8 million passengers last year) would join Nok Air (4 million passengers) at Don Mueang. Relocating low-cost airlines to the old airport should involve an incentive package, including discounts on landing and parking and rental charges. (Full version of the note is in "Stock Tips" category.)