Rail-y slow progress: U-Tapao shifts gears on airport expansion
The delayed construction of the high-speed railway linking Don Mueang, Suvarnabhumi, and U-Tapao airports has prompted U-Tapao International Aviation Company (UTA) to seek adjustments in the requirements for expanding U-Tapao Airport. The absence of a mass transit link could impact passenger numbers and airport revenue, according to UTA President Puttipong Prasarttong-Osoth.
UTA is drafting a revised proposal to present to the Eastern Economic Corridor (EEC) Office, as the high-speed railway project is unlikely to be operational by mid-2025—five years after the construction contract was signed, said Puttipong.
“We remain committed to our key projects within the EEC, including the expansion of U-Tapao Airport and the development of an airport city. However, without the high-speed rail, we must lower our projections for passenger traffic and revenue.”
UTA has already invested 4 billion baht (US$116 million) during the preparation phase and estimates an additional 15 billion baht (US$436 million) will be required to complete the first phase of the airport expansion. Phase one aims to accommodate eight to 10 million passengers annually and is expected to take five years to complete.
The master plan envisions expanding capacity over 50 years to handle up to 60 million passengers annually. However, UTA is revising its passenger traffic forecasts in light of the rail delay, with potential downgrades of up to 50%.
A finalised proposal is anticipated by the first quarter of 2025, leading to discussions with the EEC in the first half of the year. UTA is also seeking approval to proceed with airport construction independently of the railway project, which was initially a mandatory condition for development.
Airport expansion
UTA plans to boost traffic through its airport city project by collaborating with private investors on ventures such as hotels, exhibition centres, and potentially a Formula One circuit to attract visitors to the region.
Separately, Bangkok Airways, also led by Puttipong, expects to serve 4.5 million passengers this year from 48,000 flights, generating 17.8 billion baht (US$517 million) in ticket sales. The average airfare is projected to rise to 4,000 baht (US$116) per flight, up from the nine-month average of 3,900 baht (US$113).
Challenges remain in raising the average load factor from 82% to 85% and addressing aircraft shortages caused by global supply chain issues.
The airline recently added two aircraft under a wet lease agreement for international routes, employing foreign pilots in compliance with labour regulations, reported Bangkok Post.
“These temporary additions will support our international operations as we navigate the challenges of fleet expansion,” added Puttipong.
With adjustments to its airport and rail plans, UTA remains optimistic about advancing its EEC projects, while Bangkok Airways continues to adapt to a dynamic aviation landscape.
