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Don Mueang Could be a Low Cost Hub
24th Apr 2013
Bangkok's old airport, Don Mueang, could be a potential candidate to become a hub for low-cost carriers in the ASEAN region, as what Thai AirAsia's CEO has suggested to the Thai government.
Tassapon Bijleveld has recently sent a letter to the country's transport minister to make known his proposal to revive the capital's erstwhile main gateway into a major hub for no-frills or budget airlines in Southeast Asia.
His proposal calls for the designation of the Don Mueang Airport as a hub for the region's growing low-cost airlines and its two terminals should only serve this sector. The 10-member ASEAN community is anticipating the start of its economic integration in 2015 where air travel demand is expected to surge, ushering in a travel boom across the region.
Tassapon has suggested that the Thai government is better off if it will double its effort to entice more foreign low-cost carriers by dangling juicy incentives such as tax holidays.
Don Mueang Airport is operated by Airports of Thailand, though Royal Thai Air Force technically owns it. The Airports of Thailand, which is a public company, has the sole authority of Don Mueang Airport and other five major airports in the country.
Mr. Tassapon's proposal might not get a favorable decision from AoT as the government is maximizing its effort to earn as much revenue as they can get from all the airports it has managed. Restricting all other airlines to use the airport is counter-productive.
The executive is also urging other budget carriers to fly to underserved routes such as Lampang Chiang Rai Nan and Phrae to boost tourism in those areas.
The duty of Tourism Authority of Thailand is to develop the country's image as a whole including all the less popular regions as long as public infrastructures are in place where air travel is economically viable.
The renovation of Terminal 2 at Don Mueang Airport is scheduled to start this year and is expected to be finished by 2016, which, by then, will be used for budget carriers. Upon its completion, it will hopefully ease traffic congestion at the Suvarnabhumi Airport which is already operating beyond capacity.
Don Mueang, which is using a single terminal, is expected to handle 16.9 million passengers by the end of this year. When T2 is already operational by 2016, its capacity will grow to 27.5 million annually.
In November 2012, Don Mueang Airport reclaimed its status as an international hub when AirAsia group of airlines transferred their base there. Currently, the only remaining airlines that continue to operate their domestic services out of Suvarnabhumi Airport are Bangkok Airways and THAI.
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