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Don Mueang to be Main Hub for AirAsia
4th Jul 2012
Come October 1, AirAsia will start using the old but renovated airport after it signed a memorandum of understanding with the Airports of Thailand. The carrier is currently operating from Suvarnabhumi International Airport.
AoT has lured budget carriers to move their base to the old airport to help decongest Suvarnabhumi which has been operating above its capacity since last year. AirAsia is the first airline to accept Aot's offer to relocate to Don Mueang Airport.
Contrary to what AirAsia has demanded earlier to turn over the whole terminal 1 for their exclusive use, AoT President denied any preferential treatment. He clarified that all other low-coast airlines will get the same incentives if they relocate there. Furthermore, he reiterated that provisions in the agreement will continue even after his leadership.
The government wanted that all budget carriers and domestic flights will operate at the old airport so that Suvarnabhumi International Airport will be handling only full-service airlines offering international air service. Don Mueang's T1 has an annual capacity of 16 million passengers. Together with T2, the airport's total annual capacity is 36.5 million passengers.
There are 17-18 airlines are expected to move their respective hubs to Don Mueang Airport as soon as renovation of the T1 is complete this year. Orient Thai Airlines, complained that, strangely enough, it won't get incentives as what AoT had promised to airlines who will move their base there.
Though the airport is struggling to make profits, Mr. Anirut is hoping that in three years time, it will become profitable and shall earn 500 million baht annually if asset impairment costs shall be written off.
He is confident that the target revenue shall be met within the period due to the increasing numbers of passengers passing through the airport. A domestic passenger will pay 100 baht and 700 baht is taxed from passengers flying to an international destination.
Don Mueang will also have its own duty free shops but the airport won't be relying much on it because duty free shopping is not popular among budget travelers. Bidding for duty free concession will be announced soon as it won't grant the rights to the King Power Group, the current operator at the Suvarnabhumi.
The Airports of Thailand has earmarked a budget of 154 million baht for the renovation of T1 on top of the 1.64 billion baht for its rehabilitation project after last year's deluge.
The government is planning to deploy public transport services such as buses to ease movement of passengers between the two airports.
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