THURSDAY, March 28, 2024
nationthailand

AOT faces plunge in passengers, impact from relief measures  

AOT faces plunge in passengers, impact from relief measures  

The total  number of passengers at the  six airports under  Airports of Thailand (AOT) might contract by 10 per cent if the novel coronavirus outbreak drags on further, said president Nitinai Sirismatthakarn on Thursday (February 20).

As of February 16, the total passenger number posted a negative growth of between 2.5 per cent and 2.6 per cent.

AOT board on February 19 approved relief measures for business operators at the six airports.

Topping the measures is  a 20- per cent reduction on  fixed monthly fees from February 1 2020 to January 31,  2021.  AOT will review the measure  next year  in line with the situation at the time. It only applies to operators under contracts of  fixed revenue sharing.

The measure for  non-fixed revenue sharing includes waiving  collection of the annual and monthly minimum guarantee during February 1, 2020 to March 31, 2022. It will collect only the per cent-based fee.

However,  AOT reserves the right to make changes, corrections, cancellations of conditions of assistance measures  for operators  whenever appropriate, in accordance with the situation and impacts  from the COVID-19 outbreak.

Nitinai said that AOT had considered these relief measures carefully.

By easing the financial burden of  business operators during the virus crisis, they will be able to continue their operations.

If not offering  any help at all, they will soon be asking AOT to terminate their contracts.  AOT will have to call a fresh bid to bring in new operators and no one can guarantee if any company will be interested to enter the bid at this time.  

Some securities houses have revised downward their forecast of AOT net profit this year on the assumption that the  relief measures might hit its financial performance.

AOT share price on Thursday (February 20) plunged 4.80 per cent to close at Bt64.50.

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