Passenger service hike 'worth extra B3bn' to AoT

Bangkok Post

6 days ago

The Civil Aviation Authority of Thailand (CAAT) expects a decision on an increase in the Passenger Service Charge (PSC) by October, saying a major adjustment could boost Airports of Thailand's (AoT) revenue by three billion baht annually.
CAAT director ACM Manat Chawanaprayoon said the CAAT and the AoT are currently studying the PSC for outbound travellers, with the aim of a major adjustment.
The move comes after years of unchanged PSC rates that no longer reflect actual airport operating costs -- posing a barrier to airport development and leaving charges significantly lower than regional hubs like Singapore's Changi Airport, which collects an equivalent of 1,400–1,500 per passenger, compared to AoT's current rate of 730 baht for international departures.
ACM Manat said if AoT aspires to become a regional aviation hub, PSC rates must be revised to a level that aligns with realistic revenue expectations and investment needs for infrastructure development. Although it remains unclear whether the adjustment will see the proposed 100-baht rise. Both CAAT and AoT are expected to complete their joint study by October. Once the study is finalised, AoT will formally submit its proposal to the CAAT for review. The CAAT will then invite the AoT to present the findings, including the necessity and investment plans, before determining an appropriate adjustment and forwarding the proposal to the Civil Aviation Board (CAB) for final approval.
In the interim, CAAT plans to propose a five-baht-per-person PSC increase to the CAB. The rate has already been evaluated by CAAT but is pending CAB approval, which is currently delayed due to an incomplete quorum following a member's resignation. The transport minister, who chairs the board, is expected to submit a new nominee to the cabinet shortly, enabling the board to convene and deliberate.
Regarding the AoT's plan to introduce charges for transit (passengers continuing on the same flight after a layover) and transfer (passengers switching flights or aircraft after a layover) passengers -- which are currently exempt -- the CAAT confirmed its readiness to consider such a proposal. The AoT must submit detailed documentation and comparative data with similar-tier international airports to support the case.
Acting AoT president Paweena Jariyathitipong said the AoT and CAAT are now aligned in principle that the PSC must cover the actual costs of providing airport services, a case the AoT has advocated for the past 5–6 years.
While PSC calculations vary globally, all follow International Civil Aviation Organization standards. AoT is now assessing which model best suits Thailand, considering local operational variations. Despite differences in management costs and passenger volumes among its six airports, AoT plans to apply a uniform PSC rate across all its facilities for consistency in revenue and expense management.
If the five-baht increase is approved, AoT stands to gain an additional THB 200–300 million annually. However, an increase of up to 100 baht could boost AoT's annual revenue by about three billion baht.