AOT to repurpose some commercial space at two airports

TUESDAY, JUNE 25, 2024

Reclaiming present commercial and office space being undertaken to develop facilities at Suvarnabhumi and Phuket airports

The Airports of Thailand (AOT) said it has prepared commercial activities to compensate for an approximate loss of over 90 million baht from reclaiming commercial and office areas at Suvarnabhumi Airport and Phuket International Airport.

According to the agency’s letter to the Stock Exchange of Thailand on Friday (June 21), the reclamation, which will come into effect on July 1, aims to improve and develop facilities at the two airports to meet aviation standards and increase passenger satisfaction.

This move also aims to comply with aviation consultancy firm Skytrax’s suggestion on improvement and development of Suvarnabhumi Airport to meet passengers’ expectations, as well as promoting the airport to being among the world's top 50 airports by 2025 and among the top 20 within the next five years.

AOT will reclaim certain commercial areas under King Power Duty Free, and certain office areas of government agencies, namely the Immigration Bureau, the Thai Customs Department and the Revenue Department for improvement and development.

This will free up approximately 1,097.14 square metre areas inside Concourses and Midfield Satellite 1 (SAT-1) at Suvarnabhumi Airport, and approximately 491.22 square metre areas inside the International Passenger Terminal at Phuket International Airport.

The agency said the reclamation might cause a decrease of approximately 1.01 million baht per month in office and state property rent and could result in a decrease of some 74 million baht and 19 million baht per month in minimum guarantees for the 2024-2025 contract years at Suvarnabhumi Airport and Phuket International Airport, respectively.

“To further make up for this drop in revenue, AOT has prepared projects to increase revenue from other commercial activities,” the agency said.