Author Topic: Airport taxes to rise by year-end  (Read 325 times)

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Offline thaiga

Airport taxes to rise by year-end
« on: September 03, 2013, 08:42:28 PM »
Airports of Thailand Plc (AoT) on Tuesday said it plans to raise passenger service charges, or airport taxes, on domestic and international passengers at airports for the first time in six years.

The state-owned firm, which runs the kingdom's six key airports including Suvarnabhumi, will seek Civil Aviation Department (DCA) approval to raise the charge from 700 baht to 800 baht for international passengers and from 100 baht to 150 baht for domestic travelers.

If approved by the DCA, the long sought-after fee hike would take effect at the end of this year and would result in an extra 2 billion baht in incremental revenue, AoT chairman Sita Divari said.

Mr Sita said the cost of serving domestic passengers is 329 baht per flight, while an international passenger costs 500 baht.

Passenger service charges for international passengers generate revenue of 10 billion baht each year, but losses incurred by the low fee for domestic travellers amount to seven billion baht, leaving about three billion baht in revenue for the AoT, he added.

The charges were last adjusted on Feb 1, 2007, when the international fee was increased from 500 baht to 700 and the domestic fee from 50 baht to 100.

The AoT chairman said recently that the hike reflects the real costs facing airports, and suggested the money should be directed towards raising passenger service quality.


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