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AOT faces plunge in passengers, impact from relief measures

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AOT faces plunge in passengers, impact from relief measures  

By THE NATION

 

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The total  number of passengers at the  six airports under Airports of Thailand (AOT) might contract by 10 per cent if the novel coronavirus outbreak drags on further, said president Nitinai Sirismatthakarn on Thursday (February 20).

 

As of February 16, the total passenger number posted a negative growth of between 2.5 per cent and 2.6 per cent.

 

AOT board on February 19 approved relief measures for business operators at the six airports.

 

Topping the measures is a 20- per cent reduction on fixed monthly fees from February 1 2020 to January 31, 2021.  AOT will review the measure next year in line with the situation at the time. It only applies to operators under contracts of fixed revenue sharing.

 

The measure for non-fixed revenue sharing includes waiving collection of the annual and monthly minimum guarantee during February 1, 2020 to March 31, 2022. It will collect only the per cent-based fee.

 

However, AOT reserves the right to make changes, corrections, cancellations of conditions of assistance measures for operators whenever appropriate, in accordance with the situation and impacts  from the COVID-19 outbreak.

 

Nitinai said that AOT had considered these relief measures carefully.

 

By easing the financial burden of business operators during the virus crisis, they will be able to continue their operations.

 

If not offering any help at all, they will soon be asking AOT to terminate their contracts. AOT will have to call a fresh bid to bring in new operators and no one can guarantee if any company will be interested to enter the bid at this time.  

 

Some securities houses have revised downward their forecast of AOT net profit this year on the assumption that the relief measures might hit its financial performance.

 

AOT share price on Thursday (February 20) plunged 4.80 per cent to close at Bt64.50.

 

Source: https://www.nationthailand.com/business/30382524

 

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-- © Copyright The Nation Thailand 2020-02-21

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More like a drop of 50% and don't cry too much TOT, you have been raking in billions when the good times rolled so now dig into your coffers a bit until the next good times...

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3 hours ago, webfact said:

As of February 16, the total passenger number posted a negative growth of between 2.5 per cent and 2.6 per cent.

I doubt the lack of Chinese accounts for a 2.6% drop only - and if that figure is year on year and the 'stay away continues' that 10% contraction they are reporting will be more like 30% if dropping 2.5% a month

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No surprise.  The wheels have come off the pro-China wagon.

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As Chinese make up 25% of tourists....surely as none are coming its 25% reduction...

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   It's not just the Chinese who are not coming.  As the virus spreads, more people around the World are electing to not get on an airplane until the virus is more under control--which is likely to take months.  My partner's brother and sister were planning to visit Thailand from the US in March and they have cancelled their trip.  

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