Latest news with #ServiceCharge
Bangkok Post
29-07-2025
- Business
- Bangkok Post
Passenger service hike 'worth extra B3bn' to AoT
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.
Bangkok Post
25-07-2025
- Business
- Bangkok Post
Passenger service charge at Thai airports may go up
The Transport Ministry has told Airports of Thailand (AoT) to explore the possibility of raising the Passenger Service Charge (PSC) for departing passengers at six major airports under its supervision. Transport Minister Suriya Jungrungreangkit said an increase of 100 baht is under consideration. The study will compare Thailand's rates to those at major international airports, including those in Singapore, Japan and Hong Kong. The results are expected by September. According to Mr Suriya, the current PSC rates collected in Thailand may be below the global average. Paveena Chariyathitiphong, acting AoT president, confirmed the study is already underway. She said the primary goal is to boost income and reinvest in transforming Thailand's airports into aviation hubs for Asia. The review will consider facility upgrades, particularly to improve convenience for transit passengers. Upon conclusion of the study, the AoT will submit its proposal to the Civil Aviation Authority of Thailand and the Civil Aviation Board, with the goal of implementing the new rates before the end of the year. At present, the AoT charges 730 baht per international departing passenger and 130 baht per domestic departing passenger.
