Delays in constructing Thailand’s high-speed railway linking Don Mueang, Suvarnabhumi, and U-Tapao airports have prompted U-Tapao International Aviation Company (UTA) to seek revised terms for its airport expansion plans. The company is preparing to negotiate with the Eastern Economic Corridor (EEC) office to ease some requirements, citing potential impacts on passenger numbers without mass transit connectivity.
Puttipong Prasarttong-Osoth, president of Bangkok Airways and a director at UTA, announced plans to propose a secondary strategy to the EEC by early 2025. With the railway unlikely to commence operations by mid-2025, five years into its construction contract, UTA is re-evaluating its projections. “While we remain committed to key projects like the airport expansion and city project, passenger traffic and revenue projections may need adjustment without the railway facilitating travel,” said Puttipong.
UTA has invested 4 billion baht in the project and plans an additional 15 billion baht to complete phase one of the U-Tapao airport expansion. The airport is expected to attract 8-10 million passengers annually upon completion of this phase, with each development stage taking five years.
The long-term master plan aims to expand the airport’s capacity to 60 million passengers annually over the next 50 years. However, revised traffic forecasts, factoring in the delayed railway, suggest passenger numbers could fall by as much as 50%. The adjusted plans are anticipated in the first quarter of 2025, allowing UTA to discuss starting construction without the railway, a mandatory condition in the original agreement.
The airport city project, another element of UTA’s strategy, aims to boost passenger traffic through co-investment ventures, including hotels, exhibition centers, and possibly a Formula One circuit.
Meanwhile, Bangkok Airways forecasts handling 4.5 million passengers from 48,000 flights in 2024, generating 17.8 billion baht in ticket sales. The airline expects average airfares to rise to 4,000 baht per flight, but challenges persist in increasing its load factor to 85% and acquiring more aircraft amid a global supply shortage.
The airline recently added two aircraft through wet leasing arrangements, utilizing foreign pilots for international routes in compliance with labor laws.
