New Revenue Stream to Boost Non-Aeronautical Income
Airports of Thailand Public Company Limited (AOT) has successfully received crucial approval from the Civil Aviation Authority of Thailand (CAAT) for new service charges at Satellite Terminal 1 (SAT-1) of Suvarnabhumi Airport. The approved fees are specifically for the 400 Hz aircraft power supply and PC-AIR air-conditioning systems, which are essential ground support services for airlines. According to Acting President Miss Paweena Jariyathitipong, these new charges are expected to generate over a substantial THB 300 million in additional revenue per year for the company. These ground support services have been in operation at SAT-1 since September 2023 and are currently utilized by approximately 30 airlines each month, accounting for around 2,000 flight operations. This new revenue stream is a key component of AOT’s strategic priority to grow its non-aeronautical income, which aligns perfectly with the sustained increase in airline traffic at Suvarnabhumi Airport, further diversifying the company’s financial base and creating a more robust revenue model.
The Strategic Shift Towards Sustainable Revenue
This strategic move by Airports of Thailand is not merely about generating immediate revenue; it represents a calculated plan to develop more efficient and sustainable income sources for the company in the long term. The new fees contribute to the growth of non-aeronautical income, which is generally more stable and predictable than income from aeronautical activities, such as landing and parking fees, which are often subject to the unpredictable fluctuations of the airline industry. By focusing on non-aeronautical services, AOT is diversifying its financial portfolio and adopting a business model that is more resilient to external shocks. This approach is part of the company’s broader vision to position Suvarnabhumi as a future regional aviation hub, a status that requires a modern, comprehensive, and financially robust operational framework. The ability to generate stable, long-term revenue streams is crucial for funding ongoing infrastructure upgrades and maintaining a high standard of service that is expected of a world-class airport.
A Commitment to Environmental and Community Goals
The newly approved services are also crucial for AOT’s commitment to long-term sustainable development and its vision for Suvarnabhumi as a future regional aviation hub. By providing these standard international offerings, the airport helps reduce the environmental impact of ground operations. The on-ground power supply and air-conditioning systems significantly reduce the need for airlines to use their own auxiliary power units (APUs) while at the gate. This directly helps to reduce energy usage, greenhouse gas emissions, and noise pollution that would otherwise be caused by noisy and less efficient aircraft ground power units. This initiative underscores AOT’s dedication to addressing its environmental and community impacts. The strategic decision to monetize these services while simultaneously promoting environmental sustainability is a prime example of how the company is aligning its financial strategies with its corporate responsibilities, proving that profitability and sustainability can be achieved in tandem and further solidifying the airport’s reputation as a modern and responsible regional aviation hub.
