Bangkok Airways warns of U-Tapao airport pull-out
Consortium seeks 1 month to decide on 290-billion baht project
Thailand’s ambitious U-Tapao Airport project may be about to hit turbulence, with the consortium behind the 290-billion-baht development warning it could walk away after years of delays and government inaction.
Bangkok Airways CEO Puttipong Prasarttong-Osoth confirmed that U-Tapao International Aviation Co Ltd (UTA), in which the airline holds a 45% stake, has asked for one month to decide whether to continue or pull out. The group also includes BTS Group Holdings (35%) and Sino-Thai Engineering & Construction (20%).
The consortium says repeated missed deadlines by the government’s Eastern Economic Corridor (EEC) Policy Committee have eroded confidence. A key five-year contractual milestone, including progress on the long-promised high-speed rail link between Don Mueang, Suvarnabhumi and U-Tapao, expired in June with little movement.
“We have waited many years without clarity. If nothing improves, we may have no choice but to withdraw.”
UTA has already proposed scaling back its initial investment. The original first-phase capacity target of 12 million passengers per year was cut to 8 million, and most recently to just 3 million, with growth to follow based on demand. While the EEC has agreed to present these revised terms to Cabinet, the current caretaker government is unable to approve major new projects, further clouding the outlook.
If UTA pulls out, it could legally exit without penalty due to government non-compliance. The consortium is also preparing to demand repayment of around 4 billion baht already invested, though how much can be reclaimed is uncertain.
Separately, Bangkok Airways is eyeing a partnership with Thai Airways on an MRO (maintenance, repair and overhaul) facility at U-Tapao. The plan would see Bangkok Airways develop a 30-rai portion independently with an estimated investment of 1 billion baht.
Bangkok Airways also reported mixed performance, with September–December forward bookings up 4% year-on-year, driven by strong Samui routes, though international travel remains down 3%. The airline has trimmed its 2025 passenger forecast to 4.3 million from 4.7 million and cut load factor expectations to 78%, reported Kaohoon International.
Looking ahead, Bangkok Airways has signed for 10 new ATR aircraft from late 2026 and plans to procure up to 20 new narrow-body jets. Investments in Trat Airport (400 million baht) and Samui Airport (1.5 billion baht) are also underway, aimed at boosting passenger capacity and facilities.
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