Thailand halts airport transfer plan due to financial concerns
Thailand’s Transport Ministry has abruptly scrapped plans to transfer Krabi, Udon Thani, and Buriram airports to Airports of Thailand Plc (AOT), citing financial and operational concerns. Instead, officials are shifting focus towards developing state-run airports to generate more income and reduce reliance on government funding.
Deputy Transport Minister Manaporn Charoensri announced yesterday, March 6, that the transfer, initially approved by the Cabinet in August 2022, had been put on indefinite hold.
“These three airports are key income generators for the Department of Airports (DOA). They can serve as models for improving our 25 other airports and making them financially self-sufficient.”
However, a well-informed source within the ministry revealed that the decision was not just about finances. A recent meeting between the ministry, DOA, and AOT highlighted major roadblocks, including concerns over the rights to state properties and assets being transferred to a state enterprise.
Additionally, DOA officials opposed becoming state enterprise employees, further complicating the transition.
“The transfer would not be in the best interest of the department. The three airports can generate enough revenue to support the other 25 airports under our control without relying on state funding.”
Airports overhaul
With the transfer off the table, the Transport Ministry is now pushing for a complete overhaul of all 28 airports under DOA management.
Manaporn has ordered that each airport must undergo development aimed at boosting income while staying free from influential groups that have historically exploited airport operations for personal gain.
Krabi Airport has been singled out as a priority for reform, given its long-standing reputation for being plagued by influential figures benefiting from its operations.
The government is now focused on enhancing state-run airports by linking them to local tourism hubs and integrating them with public transport networks to boost passenger flow and revenue.
Additionally, Manaporn mandated open bidding processes for commercial zones at airports, ensuring transparency and fair competition among private firms.
To oversee these changes, renovation committees will be established at each airport, bringing together local government agencies to improve infrastructure and services.
For example, provincial land transport offices will coordinate to issue new public transport licences, ensuring seamless travel connections between airports and key tourist destinations, reported The Nation.
With the government prioritising development over privatisation, Thailand’s regional airports are set for a major transformation but whether this shift will lead to long-term success remains to be seen.
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