THURSDAY, March 28, 2024
nationthailand

Let’s avoid another monopoly in our airports

Let’s avoid another monopoly in our airports

Airports of Thailand plans to sign an agreement with energy giant PTT to manage passenger terminals and car parks for commercial purposes. But is this arrangement best for Thailand?

Isn’t Thailand committed to developing the private sector, with state enterprises playing a role only if it cannot do so effectively and efficiently? Retail giants like the Central and Mall groups have decades-long experience in running commercial retail and parking areas. There’s no need for a state enterprise here.
If a state enterprise must run the show, then PTT is not the suitable candidate, since its core business is oil products, not car parks or retailing.
With at least 10 airports being considered, a winner-take-all model risks bringing another monopoly that, like at Suvarnabhumi, fails to make Thailand a shopping destination. Rather, we should split the airports between at least three firms and use transparent, measurable performance indicators, such as the number of foreign shoppers or revenue. These could be benchmarked against, say, Singapore’s Changi or Amsterdam’s Schipol to measure which firm benefits Thailand the most.
Put Thailand first.
Burin Kantabutra

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