Cheap Oil Prices Alter Cost To Improve Suvarnabhumi Airport

29th Oct 2015

AirAsia Plane

According to Airports of Thailand (AoT), existing cost estimates for the expansion of Suvarnabhumi airport have been affected by declining oil prices in the world market. The price of building materials have also gone down.

These developments triggered cuts in project cost by as much as seven billion baht.

Nitinai Sirismatthakarn, president of AoT disclosed that the original budget amounted to 62 billion baht. This has been adjusted to 55 billion baht as prices of above commodities dipped. He assured however that the quality of materials to be procured will be maintained.

Mr. Nitinai mentioned that requirements for bidding and other relevant info will be announced as soon as these have been finalised. He hopes to finish these before the end of this year in preparation for next year's actual bidding.

The AoT president revealed that the second-stage expansion is broken into six components.

The first component involves laying of electrical network that would help link two passenger terminals. Signing of documents outlining the works to be done and other details is already anticipated.

Estimated time needed to finish the project's second stage is three years. Time to finish the remaining stages could take approximately two more years.

At present, AoT is preparing the project documents to be presented to the State Enterprise Policy Committee. In line with this, it will conduct a documents review next month prior to finalisation and endorsement to said committee for approval.

Mr. Nitinai hopes to push Suvarnabhumi airport's capacity from 45 to 60 million people upon finishing the second-stage expansion in 2018. Right now, airport capacity is pegged at 52 million people a year.

Other airports under AoT management are also undergoing improvements, all aimed at raising current capacities.

Before the close of 2015, Don Mueang airport will have a new departure terminal for international passengers. Capacity is anticipated to grow to 30 million passengers a year which translates to a 62 per cent increase.

Phuket airport is set to launch its new terminal early next year, doubling yearly capacity from 6 million to 12 million passengers.

According to AoT, the three airports mentioned above are already operating beyond their designated capacities.

Meanwhile, AoT plans to retain more than 300 million baht from its yearly revenues and allocate the amount for projects aimed at enhancing customer service and safety.

The AoT president hopes to improve mobile apps, providing vital info in ways convenient to passengers. Check-in procedures will also be enhanced.

The Aeronautical Radio of Thailand added that a Departure Flow Management system will be also be installed to help manage air traffic and ease congestion.

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