Suvarnabhumi plays catch up

BANGKOK, 31 May 2012: Airports of Thailand kick started its second development phase at Suvarnabhumi Airport, Wednesday, signing a project management contract identifying a construction start-up date in 2015 with the project due for completion in 2017.

Airports of Thailand signed off on a project management contract worth Bt809 million with EPM Consortium to supervise the second phase project from 1 June to 31 March 2018.

The second phase comprises of a 216,000 sqm satellite terminal with 28 aerobridges and aprons; a tunnel and mass transport connecting the main and the satellite buildings; eastward extension of the main terminal; airline offices and parking buildings and supporting infrastructure.

Once complete, the handling capacity at the airport will be raised to 60 million passengers a year, from the present 45 million. The airport is already operating beyond that capacity ceiling.

The overall investment covers Bt62.5 billion including the Bt809.9 million management contract. Airports of Thailand president, Anirut Thanomkulbutra, said around 80% would come from AoT’s cash flow, while around 20% would be covered by loans from Thai banks.

Mr Anirut said AoT would work closely with the EPM Consortium to fast track processes to allow more time for construction. The president vowed to complete the project in 2017.

“Technology can help us reduce the time especially during the design period. To get a loan from Thai banks will also take time as it will also involve overseas banks, but we can fast track it,” he said.

However, by the time the satellite building is complete, passenger numbers are projected to reach 64 million, which again means the airport will be running over capacity despite the extension.

AoT’s president believes the solution is to leap frog to a third phase in the hope that will put the airport ahead of the growth curve.

In the master plan, Suvarnabhumi Airport has five development phases that will ultimately give it a capacity of 120 million passengers per year and four runways.

The third runway is not in the second phase plan, but it is under environmental impact assessment. Mr Anirut said once the project passes the EIA, AoT could proceed with that as a separate project to the second phase development.

Currently, Suvarnabhumi Airport has already been operating beyond its capacity resulting in congestion at check-in and immigration counters. Last year, it handled around 48 million passengers, but the airport management has been lambasted by the media and airlines for not addressing the capacity issue earlier.

While waiting for the expansion, the government agreed that airlines especially low-cost carriers should move to Don Mueang Airport to reduce congestion at Suvarnabhumi Airport.

Currently, only Nok Air and Solar Air fly from Don Mueang using the former International Terminal 1. Nok Air carries around 4 million passengers a year, while the terminal can handle around 14 million passengers a year.

AoT has been negotiating incentives with airlines to return to Don Mueang. The major target for these efforts is AirAsia Group. Thai AirAsia alone carried 6.8 million passengers, last year, while it projects 8 million passengers this year. The relocation of the group will significantly reduce congestion at Suvarnabhumi Airport.

Mr Anirut said AoT would have Don Mueang fully ready to handle international flights by July.

“We will be ready, but it depends on airlines when they are ready to use Don Mueang,” he said.

The president refused to name airlines, but said there were some  interest from small scheduled airlines and low-cost international airlines that fly mainly point-to-point services and do not rely heavily on connecting services for their passengers.

Mr Anirut said Don Mueang Airport should handle an additional 8 million passengers a year if the interested airlines eventually relocate.

That would reduce passengers at Suvarnabhumi Airport to 58 million by 2017.

In addition, Suvarnabhumi Airport will use the new security control area, which is an elevated platform on the eastern side of the terminal building from 15 June and a similar facility will open on the west zone security control area by end of June.

Sourced: ttrweekly