AOT extends assistance measures for airlines and businesses

The state-owned Airports of Thailand (AOT) extended concession charges for airlines and businesses affected by the pandemic by an additional five months on Thursday.

According to the statement, the company’s board of directors approved the extension of the concession charges, including office and state property rents, terminal and building service charges, landing and parking charges and aircraft service charges.

When combined with the previous measures, the assistance measure amounts to 23 months of payment suspension for businesses under the company’s supervision.

“The government has implemented strict travel restrictions to control the outbreak, causing a sharp decline in the number of flights and passengers,” AOT said.

As a result of the crisis, concessionaires and airlines operated differently than usual, the company noted.

Six airports under AOT’s operations are Don Mueang, Phuket, Chiang Mai, Hat Yai, Chiang Rai and Suvarnabhumi, which all serve local and international flights.

A Bualuang Securities analyst forecast AOT will report losses in 2021 and 2022 of 14 billion baht and 4 billion baht, respectively, but expecting 2023 results to turn around. AOT now traded at 58.50 baht, up 0.43 per cent, as of Thursday morning.

Earlier this week, the Thai Airlines Association, an association of seven large airlines, requested the government provide 5-billion-baht low-interest loans to help them counter the effects of the coronavirus outbreak.

Initially, the group had requested 25 billion baht in soft loans, but did not receive any support from the government.

The airline group includes Bangkok Airways, Thai AirAsia, Thai AirAsia X, Thai VietJet, Thai LionAir, Nok Air Plc and Thai Smile.

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