The latest profit report for the Airports of Thailand (AOT) shows that fiscal year 2006/07 wasn’t as good as the last, with 90% fall in profit largely due to depreciation and massive maintenance costs.

Profit for the year ending on the 30th of September, 2007 came in at THB1.09 billion (USD33 million) sharply down when compared to the same period ending in 2006 which achieved THB10.5 billion.

This lukewarm result came even though AOT recorded a 20% surge in revenue profits, which were boosted from charging airlines more in airport fees.

But any gains made in that area where negated due to costs lifting by a whopping 91%.

According to a statement made by AOT, this was largely attributed to depreciation and maintenance at the new Suvarnabhumi Airport in Bangkok.

News of the smaller profit saw AOT shares fall by 0.86% on close of trading on the day of the announcement.

BANGKOK, Nov 30 (TNA) – The Central Administrative Court has rejected a petition lodged by people around Suvarnabhumi international airport to prohibit night-time flights which they claimed generated noise pollution in the neighborhood.

The Central Administrative Court turned down the petition lodged by 359 residents who desperately cited noise pollution caused by landings and take-offs of airliners. They were calling for the termination of 166 flights,
mostly international, scheduled between 10 pm and 5 am daily.

However, the court ruled the international flights at Suvarnabhumi airport could not be called off at the expense of passenger inconveniences and Thailand’s credibility in the eyes of foreigners visiting the country daily.

International flights were scheduled six months in advance by a world aviation body in Canada in order to accommodate bookings and flight plans.

It was instead suggested Suvarnabhumi residents call on the Airports of Thailand (AoT) or other authorities, to pay compensation for any damage caused by the airliners traffic. The airline companies might possibly share the cost of compensation for those affected by noise pollution. (TNA)-E008

Despite calls for more flights to use the old airport, Transport Minister Theera Haocharoen and his deputy are reluctant to use Don Mueang and have advised the Airports of Thailand (AoT) to make better use of Suvarnabhumi.

The AoT board on Saturday decided to use Don Mueang for both local and international flights so the AoT would not be faced with the immediate and costly expansion of the congested Suvarnabhumi.

Adm Theera said the plan needed careful consideration, and should take into account the national interests and the promotion of Suvarnabhumi airport as a regional transport hub.

The minister believes good management alone can increase the capacity of Suvarnabhumi from 45 million to 50 million passengers annually.

Deputy Minister Sansern Wongcha-um said the AoT needed to review its plans and look at the views of airlines, technical aviation limitations and make a clear expansion plan for Suvarnabhumi.

According to Mr Sansern, airlines would be inconvenienced if their connecting flights are returned to Don Mueang, and that could affect the goal of Suvarnabhumi airport becoming a regional air transport hub.

Mr Sansern wants the AoT to clearly state how Suvarnabhumi will function in the next five years so airlines will know if they must return to Suvarnabhumi airport from Don Mueang.

He warned the AoT that it was not easy to run two airports in the capital. Technical limitations would stop Don Mueang reaching its former annual capacity of 33 million passengers, he said.

Charnnarong Chuacharoen, the business director of Aeronautical Radio of Thailand Co, said air traffic controllers would have to be more cautious if both Suvarnabhumi and Don Mueang were to operate simultaneously.

They are close to each other and their runway alignments converge, he said.

At present, Don Mueang is used mainly in the daytime, while Suvarnabhumi is used more at night. There are not many flights taking off or landing at the same time from both airports, so there is not too much pressure on air traffic control, he said.

If both airports operate together, Don Mueang will not reach its full capacity because Bangkok’s air traffic will be congested and flights will have to wait longer in queues, said Mr Charnnarong.

No study has been done on the appropriate amount of traffic for Don Mueang, and that will affect Bangkok’s overall air transport services and traffic control, he said.

The AoT board also decided on Saturday to expand Phuket International airport, which has seen an increase in traffic, especially chartered flights, in the past two years. The airport now handles 5.4 million passengers annually.

The People Power party have demonstrated remarkable lateral problem-solving abilities with their advert in the Bangkok Post. They are trumpeting a Cheap Housing project on the outskirts of Bangkok near a train station whose line connects to the heart of Bangkok.

I am both surprised and delighted to hear that the rail link to Suvarnabhumi will be completed soon after the election and that a settlement agreeable to all parties will be reached with the residents, allowing the new tenants access to the unwanted property under the flight path.

This is truly an innovative solution, with the potential to diffuse accelerating populist costs.

Matchimathipataya party leader Prachai Leophairatana on Saturday went to meet residents of Onnuj Road area in eastern Bangkok, promising them that in the event he becomes prime minister, he will scrap a planned expressway that will be built in the area.

Mr Prachai received a warm welcome, as residents there are concerned about that the M1 expressway, which connects with the Suvarnabhumi airport, will be built in the area.

He ensured them that the project will be scrapped if he wins the premiership.

He is scheduled to meet residents of nearby Bang Na district later this evening.

Airports of Thailand Plc (AoT) saw its net profit for the financial year to Sept 30 nosedive 90% year-on-year to 1.09 billion baht, the lowest in five years, due mainly to the negative effects of Suvarnabhumi Airport.

The 70% state-owned airport monopoly blamed the poor performance on a huge increase in depreciation costs, a jump in interest payments, and unrecognised concession fees from the duty-free operator King Power.

”These three items, costing AoT more than 11 billion baht together, are largely key contributors (to the fall in profit),” AoT senior executive vice-president Kulya Pakakrong said yesterday.

Depreciation and amortisation in the period from October 2006 to September 2007 shot up 454.23% to 6.35 billion baht, as expenses related to Suvarnabhumi started to appear on the balance sheets.

Bangkok’s new international airport opened on Sept 28, 2006, at the very end of AoT’s last financial year.

An interest expense of 2.39 billion baht was paid in the past year for loans borrowed for the construction of the airport and the Suvarnabhumi Airport Hotel. Such items were recognised as assets during the construction period and are now regarded as expenditures. Lack of recognition of revenues from King Power caused AoT’s concession revenue to drop 50.97% to 2.09 billion baht.

The revenues, amounting to about three billion baht a year, are the subject of continuing litigation between AoT and the duty-free and commercial space operator for breach of contract.

AoT said its operating revenues in the year rose 20.08% to 19.5 billion baht, boosted by a 28.37% rise in aeronautical revenues to 2.9 billion baht. The increase resulted partly from air traffic growth and from the increase in passenger service fees (airport taxes), landing and parking charges during the year.

But operating expenses rose 91% to 17.99 billion baht, mainly due to the commercial operational start-up of Suvarnabhumi, including 454 million baht for repairs and maintenance of the new airport.

The stronger baht also reduced AoT’s foreign-exchange gain in the year to 2.8 billion baht from 4.19 billion a year earlier.

Mrs Kulya said that the results should not come as a shock as they were expected by institutional investors and analysts who were aware of the difficulties at the 155-billion-baht airport.

AOT shares closed yesterday on the Stock Exchange of Thailand at 57 baht, down 50 satang, in trade worth 62.15 million baht.

The Supreme Administrative Court refused a demand by Suvarnabhumi airport residents to ground all flights at night to give them a respite from the noise.

The court sympathised but said it has no authority to suspend the night flights, as such a decision would pose major problems to global airlines and will cause economic damage.

The decision followed the demand by 359 residents who wanted domestic and international flights at Suvarnabhumi airport grounded from 10pm to 5am so they can get a proper night’s sleep.

Thai Airways International’s plan to buy 65 new aircraft at a cost of 400 billion baht might have to be passed on to the next government for consideration due to several unclear details. Transport Minister Adm Theera Haocharoen said some issues remained vague and needed clarification.

Thai Airways’ board chairman and air force commander ACM Chalit Phukphasuk endorsed the plan to buy the planes on Saturday. The 10-year plan starts next year.

The national carrier is waiting for comments from related agencies, including the National Economic and Social Development Board (NESDB) and the Office of Transport and Traffic Policy and Planning, on its rationale and investment worthiness.

A ministerial source said marketing, projection and operation targets must be clearly set out before determining the types and numbers of new aircraft purchased. Issues which must be worked out in more detail include growth projection of the Asian market, particularly China and India, and market segmentation.

Thai Airways is expecting to retire 47 aging aircraft and get the 65 new planes through rental and purchase arrangements.

The airline plans to add 16 planes for long-haul flights, each with 300-500 seats.

Also on the shopping list are 29 medium to long-range jets, each with 250-50 seats, and 20 planes with 150-250 seats for domestic and regional routes.

Meanwhile, Deputy Transport Minister Sansern Wongcha-um said Don Mueang airport would serve international flights over the next five to 10 years while Suvarnabhumi gets expanded.

The Airports of Thailand (AoT) was told to submit plans on the Suvarnabhumi airport expansion and the use of Don Mueang to the cabinet before the Dec 23 election.

“We are rushing to seek cabinet approval for the overall framework, but not going into budgets or any investments,” Mr Sansern said.

With the number of people using Suvarnabhumi airport approaching the annual capacity of 45 million passengers, the new airport needed an additional terminal as well as other buildings, he said.

As part of the plan, the AoT must conduct a feasibility study and draw up a plan for transferring some international airlines back to the old airport.

The AoT needed to work on connections between Suvarnabhumi and Don Mueang as well as logistics management, because the skytrain project linking the two airports would take a long time.

Don Mueang now serves non-connecting domestic flights.

The 93-year-old airport was decommissioned when Suvarnabhumi opened in September last year, but was reopened in March to ease pressure on the new airport.

News from : http://www.bangkokpost.com

The Operations Centre Building in Thai Airways International Suvarnabhumi Airport has signed a deal to set up a Thai perishables distribution centre in Germany this week.

The joint venture will enable Thai agricultural products to enter Europe and South East Europe, with a framework yet to be negotiated to reflect the objectives of both groups.

The centre based to be in Munich Airport was secured when managing director of Thai Airways International Cargo and Mail Commercial, Vorapravat Suebsaeng; Chairman of Thai AirFreight Forwarders Association (TAFA), Kovit Thanyarattakul; Chief Operating Officer Munich International Airport, Peter Trautmann; and CEO and President, Cargogate Flughafen Muenchen.Roger Scheifele all entered into and signed a Memorandum of Understanding (MOU).

As a result, it is anticipated that Munich international airport will become the main gateway for the cargo shipment of agricultural products with the business helping to support and serve the public sector exports.

The Thai Government and Thai AirFreight Forwarders Association (TAFA) hope to find support from the private sector to this project and along with the Bavarian Government policy to approve the joint venture plans for Thai investors in relation to Munich Airport.

TAFA and four other companies will assist in an operational capacity to manage the temperature control cargo at the centre at Suvarnabhumi Airport through to its arrival in Munich. Cargogate will draw up designs for the centre and help develop the business plan.

This venture will also have the potential to increase profitability because both parties will be using the service.

Article from : http://www.etravelblackboardasia.com

Residents affected by noise pollution around Suvarnabhumi airport filed a lawsuit at the Administrative Court, asking it to ban air traffic at the airport between 10pm and 5am.

About 50 residents went to the court on Wednesday morning, saying that the period should be their rest time.

Chaisak Angsuwan, director-general of the Aviation Department, admitted that Thai economics especially aviation business will be greatly affected if the court grants the residents emergency protection and bans the air traffic between the time.

Airport of Thailand (AOT) chief executive Chana U-sathaporn said he was worried.. The matter will be brought into a board meeting on Thursday for urgent discussion.

Air Marshal Chana insisted AOT is not neglecting the complaints of residents, adding that it is willing to pay them compensation if new studies show they should have higher payment.

He said AOT has set aside a budget of about 3 to 4 billion baht or so to cover the compensation cost.

News from : http://www.bangkokpost.com