Connect with us

Coronavirus (Covid-19)

AoT, already struggling, deny investing in faltering Thai Airways

Jack Burton

Published

 on 

PHOTO: thaivisa

“We’ve got enough problems of our own.”

Airports of Thailand is denying claims that it is interested in acquiring a stake in the financially floundering flag carrier Thai Airways, saying that they too are struggling with the sharp drop in revenue after airlines and airport shutdowns related to the Covid-19 pandemic.

Thai Airways, once considered one of Asia’s most luxurious airlines, has grounded its fleet until at least May, suspended or laid off staff and slashed pay for those who remain. As late as two weeks ago, the government announced it would not allow the carrier to go under. That announcement followed the abrupt resignations of both the airline President and Bangkok’s Suvarnabhumi airport director on the same day.

The national airline has been a financial basket-case for over a decade and continues to be propped up by the Thai government who bails them out each year. But the AoT says they have other priorities and won’t be buying into Thai Airways.

Passenger numbers across the 6 AoT-run international airports are expected to fall by more than 50 million baht this year, and AoT president Nitinai Sirismatthakarn said yesterday “…we believe our revenue will drop by at least 30-40%.”

Since the Civil Aviation Authority of Thailand banned all international arrivals in Thailand at the start of April, the number of foreign travellers has dropped to a mere dribble of 300-400 passengers a day. The ban deals a cripping blow to the AoT, since international travellers account for 60% of all traffic through its airports. Considering each passenger pays airport fees of up to 700 baht each time they travel from an AoT airport, their absence has had a huge impact on the company’s bottomline.

“In light of this tough situation, the company has no plans to invest in Thai.”

Instead, Nitinai says the AoT will expand its non-aeronautical business arms and focus more on development projects that aren’t related to passenger services.

“We will ask the AoT board to approve a plan to set up a new subsidiary to oversee these businesses.”

Retailers at AoT-run airports have also been severely affected by the closures and flight bans. Many shops have temporarily closed, unable to cover operating costs before flights resume.

To help them stay afloat, the AoT board will offer 50% discounts on rent to shops that stay open, while shops that had to close will be exempted from paying rent.

The AoT also plans to help struggling airlines by reducing parking and runway fees by half.

SOURCE: Bangkok Post

 

Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Jack Burton is an American writer, broadcaster, linguist and journalist who has lived in Asia since 1987. A native of the state of Georgia, he attended the The University of Georgia's Henry Grady School of Journalism, which hands out journalism's prestigious Peabody Awards. His works have appeared in The China Post, The South China Morning Post, The International Herald Tribune and many magazines throughout Asia and the world. He is fluent in Mandarin and has appeared on television and radio for decades in Taiwan, Mainland China, Hong Kong and Macau.

Follow Thaiger by email:

Coronavirus (Covid-19)6 hours ago

20 year old arrested for online alternative vaccine scam

Coronavirus (Covid-19)11 hours ago

Delta variant now the predominant strain, 78% of Thai infections

Coronavirus (Covid-19)13 hours ago

Controversial food delivery only rule faces criticism

Sponsored21 hours ago

Tour Phuket’s Islands with 5 Star Marine

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

Drugs15 hours ago

Expat arrested on drug charges allegedly claims to be a local “Robin Hood”

Thailand15 hours ago

Thai Airways selling 10 properties to raise capital

Best of15 hours ago

The 5 Best Cafes in Koh Samui

image
Join the conversation on the Thaiger Talk forums today!
Thailand16 hours ago

Thailand News Today | record Covid deaths, ban on ‘mass gatherings’ | August 4

Coronavirus (Covid-19)16 hours ago

Vaccine updates for expats; hospital extends hours to accelerate vaccinations

Guides16 hours ago

8 things to do correctly in Thailand

Best of17 hours ago

Thailand’s 5 most absolutely luxurious hotels

Myanmar17 hours ago

Myanmar envoy updated to Brunei’s 2nd Foreign Affairs Minister

Thailand18 hours ago

Thailand’s national parks ban the use of some sunscreens containing particular chemicals

Coronavirus (Covid-19)19 hours ago

Wednesday Covid Update: 20,200 new cases, provincial totals

Guides19 hours ago

Visa Exemption Rule – 56 countries to enter Thailand without a visa

Coronavirus (Covid-19)20 hours ago

Third phase testing successful for Vietnam Covid-19 vaccine

Thailand5 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism5 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket5 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism5 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand5 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism5 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand7 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand7 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand7 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand7 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand7 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand7 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand7 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand7 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand7 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending