Growth of non-aeronautical revenues at Thai airport operator, Airports of Thailand (AOT), decelerated in its financial third quarter (ending June) to +13.6% compared with the first nine months of the year when growth was +22.8%.

 

AOT, a floated company 70% owned by Thailand’s Ministry of Finance, operates the country’s two main hubs: Suvarnabhumi (BKK) – pictured right, Don Mueang (DMK) airports, plus regional international gateways: Chiang Mai, Hat Yai, Phuket and Mae Fah Luang Chiang Rai.

 

Non-aeronautical revenues in the quarter to June reached THB3,481.05m ($111.3m), up +13.6% (see table below) mainly driven, according to AOT, by an increase in concession revenue at all AOT airports and, in particular, from duty free shops whose contribution added THB271.84m ($8.7m) to its coffers.

 

 

In the nine months to June, AOT’s non-aeronautical revenue reached THB10,860.15m ($347.3m), up +22.8% (see end table), with the contribution from duty free rising by THB1,049.68m ($33.6m).

 

AIRPORT REALIGNMENT

 

The main airports contributing to AOT’s numbers are BKK [the country’s main hub] and DMK whose combined passenger numbers make up over 75% of the Thai market.

 

In the financial period reviewed, both airports – as TRBusiness has previously reported – have been undergoing important strategic changes which have had a negative impact on traffic at BKK.

 

In mid-June 2012, BKK was approved as the main gateway for full-service and connecting flights in order to promote it as a regional hub while DMK was designated to serve low-cost carriers (LCCs) and/or accommodate point-to-point domestic and international flights.

 

DMK officially opened on 1 October last year in this role with an incentive scheme in place to attract LCCs and point-to-point carriers away from BKK. The scheme will run until September 2015.