Bangkok Airways has expressed a keen interest in investing in the proposed new airport in Phangnga, should the government decide to transition from a public project to a public-private partnership scheme. This strategic move is driven by the tremendous potential of the Phangnga airport to evolve into a prominent tourism hub within Thailand.
The government’s contemplation of constructing a new airport in Phangnga arises from the necessity to alleviate congestion at Phuket Airport, where runway expansion currently poses impractical challenges. A secondary airport in close proximity would significantly augment the region’s capacity to accommodate a greater volume of flights.
Furthermore, Phangnga has gained international recognition as an emerging tourist destination, which further substantiates the viability of the project, as articulated by Mr. Puttipong Prasarttong-Osoth, President of Bangkok Airways.
A feasibility study, valued at approximately 80 billion baht, was resurrected by Airports of Thailand following Prime Minister Srettha Thavisin’s recent visit to the province, where he underscored the imperative need for expanded airport facilities to stimulate tourism.
Mr. Puttipong Prasarttong-Osoth contended that investment in the airport venture could fortify Bangkok Airways’ revenue stream. The airline currently possesses and operates airports in Samui, Sukhothai, and Trat, collectively generating an annual revenue of approximately 2 billion baht for the company.
Against the backdrop of a mounting demand for travel in the final quarter, Bangkok Airways has elevated its annual revenue target from ticket sales from 15 billion baht to 16 billion baht, maintaining an average load factor of 78%. However, post-pandemic operational costs have surged, necessitating an anticipated 8% increment in the average ticket price this year, from 3,400 baht per flight to 3,643 baht per flight, according to Mr. Puttipong.
Operational expenses have experienced an uptick of 10-15% across various components and services, encompassing ground handling at international airports, aircraft maintenance, and engine parts.
Furthermore, Bangkok Airways, as an esteemed member of the Airlines Association of Thailand, has submitted a proposal to the government, petitioning for a reduction in excise tax on jet fuel. Although it may not regress to pre-pandemic levels of 0.2 baht per litre, a lower rate than the prevailing 4.72 baht per litre is sought, given the persistently elevated jet fuel prices.
The airline is poised to recommence two flights from its hub in Samui to Chongqing and Chengdu in China in November, capitalizing on the anticipated visa exemption policy for the Chinese market during the peak season. Nevertheless, Mr. Puttipong Prasarttong-Osoth emphasized that the airline does not intend to aggressively expand Chinese routes, given the prevailing subdued demand.
The capacity recovery rate for Thai airlines operating on Chinese routes currently stands at a mere 30%, underscoring the cautious approach adopted by Bangkok Airways in expanding its fleet. The airline currently possesses 26 aircraft, with approximately 20-21 jets in active service, while the remainder await maintenance.
In the forthcoming five years, the airline envisages maintaining a fleet size of approximately 30 aircraft, a reduction from the 40 aircraft that were operational prior to the pandemic. The primary strategic focus for Bangkok Airways centers on optimizing its existing capacity by achieving higher load factors through judicious pricing strategies.
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SOURCE: http://bangkokpost.com
