AOT signs 25-year deals worth 67.305 billion baht to ease Suvarnabhumi baggage delays

Airports of Thailand Public Company Limited (AOT) plans to tackle baggage delays and labour shortages at Suvarnabhumi Airport by bringing in a third ground-handling operator in early 2027. AOT signed the agreements for the new operator on October 8, 2026.

AOT Ground Aviation Services Co., Ltd. (AOTGA), the selected operator, faces fines and possible contract termination if baggage handling and other services fail to meet agreed performance standards, AOT president Paweena Jariyathitipong said.

Paweena said AOTGA would prepare equipment and personnel for the planned ground-handling launch. The cargo warehouse has a separate construction schedule, with building work expected to take about 18 months.

Suvarnabhumi’s new handler faces service penalties

Under AOTGA’s contracts, baggage delivery times and other service standards will be assessed against key performance indicators (KPIs), Paweena said. Falling short of those requirements could result in fines or cancellation of the contracts.

Thansettakij reported that AOT’s earlier agreements with Thai Airways International Public Company Limited (Thai Airways) lacked penalty provisions, limiting the airport operator’s ability to impose fines or take contractual action over service failures.

Suvarnabhumi’s passenger growth adds to handling pressure

Paweena said Suvarnabhumi handles more than 60 million passengers annually, exceeding the 45-million-passenger threshold in a Cabinet resolution requiring a third operator. Additional capacity was therefore needed to ease the workload.

AOT’s push for an additional Suvarnabhumi operator followed the Covid-19 pandemic, when redundancies and departures from ground-handling jobs left labour shortages as air traffic recovered. Baggage delays affected the airport’s wider service performance, Thansettakij reported.

Before AOT signed the October 8 agreements, flooding in Bangkok severely disrupted ground-handling and cargo services, Thansettakij reported. Thai Airways faced a backlog of tens of thousands of bags, alongside numerous flight delays and cancellations.

AOT expects the additional operator to give airlines more choice, accommodate rising passenger and flight volumes as Suvarnabhumi expands, and help maintain services during crises. The additional capacity is also intended to support growth in Thailand’s aviation and logistics industries.

Why AOTGA is described as Suvarnabhumi’s third operator

AOTGA would become the third provider of Suvarnabhumi’s combined ramp and ground-equipment services, currently handled by Thai Airways and Worldwide Flight Services Bangkok Air Ground Handling Co., Ltd. (BFS Ground).

Thai Airways and BFS Ground also provide passenger ground services for their respective airline groups and other airline customers. Bangkok Airways Public Company Limited holds a 98.88% stake in BFS Ground.

Lufthansa Services (Thailand) Ltd. also operates at Suvarnabhumi, but Thansettakij identifies its role there as passenger ground handling only.

Suvarnabhumi’s two existing cargo warehouse operators are Thai Airways and WFS-PG Cargo Co., Ltd., in which Bangkok Airways holds 49%. Both provide international cargo warehouse services to domestic and foreign airlines.

AOTGA’s two 25-year projects cover ground services and cargo

AOTGA’s two Suvarnabhumi projects have a reported combined value of 67.305 billion baht over 25 years, including construction, equipment and long-term operating and maintenance costs.

AOT selected AOTGA for both projects after the company submitted proposals under a public-private partnership (PPP) net-cost model. The selection followed Section 36 of the Public-Private Partnership Act 2019 and received Cabinet approval on September 8, 2026.

• Ground services, about 29.391 billion baht: The AOTGA project allocates 1,608.76 million baht to buildings, machinery and equipment, and 27,782.01 million baht to operating and maintenance costs. Services cover ramp operations and ground support equipment (GSE), passenger handling, aircraft support, loading, unloading and moving baggage, freight and mail, as well as general ground management, flight services, aviation formalities and crew support.
• Cargo services, about 37.915 billion baht: The AOTGA project allocates 1,318.38 million baht to buildings, equipment and systems, and 36,596.18 million baht to operating and maintenance costs. The warehouse will handle imports, exports, transit shipments, perishables, express cargo and e-commerce goods.

AOTGA was established in October 2018. Thansettakij gives the company’s registered capital as 400 million baht and its ownership as 49% held by AOT and 51% by SAL Group (Thailand) Co., Ltd. (SAL), a company linked to SKY ICT and its partners.

AOT expects to receive revenue-sharing payments, rental income and dividends from AOTGA’s operations throughout the 25-year concession period.