|
| Airport Authority Aims for Higher Revenue |
| UPDATE : 30 July 2010 |
The Airports of Thailand is looking to improve its finances by hiking service charges at 5 major airports and cutting back on management and staff payrolls.
The President of Airports of Thailand or AOT, Serirat Prasutanond, said the AOT board has approved a rise in airport service charges at Donmuang international airport and four other airports in Chiang Mai, Chiang Rai, Phuket, and Hat Yai provinces, to keep up with changing economic conditions.
He noted that the increase will enable his company to generate 10 percent higher revenue. As of TODAY, the airport authority earns approximately a billion baht in revenue from service fees.
Serirat revealed that the current service rates have been in use since 1995 at Donmuang and since 1996 at the other airports.
After the hike, the airport service charges will be collected at the rate of 10.75 percent at Donmuang airport, 9.69 percent at Chiang Mai airport, 9.14 percent at Chiang Rai airport, 12.11 percent at Phuket airport, and 11.41 percent at Hat Yai airport.
In addition, the AOT president said the board has agreed to the plan to restructure the management of Donmuang airport, which will become effective on October 1.
In light of the management overhaul, the position of directors will be relegated from Level 11 to Level 10, in order to reduce the salary base.
Serirat added that the board has also resolved to downsize the company by slashing the number of permanent employees from 464 to 210, and casual workers from 169 to 122.
The move is expected to help free up AOT's expenses for a total of 14 million baht a month or 168 million baht a year.
Donmuang airport generates 600 million baht in annual revenue and incurs 1.2 billion baht in total expenses annually, making a loss of 72 million baht a month.
Depreciation charges and payroll tops the airport's expenses.
|
|
|
| |
|
|
|
|
|
