AOT Extends Assistance Measures Period for Businesses Affected by Covid-19 till 2022

Airports of Thailand Public Company Limited (AOT) announced the Board of Directors Meeting on Wednesday, 23 September 2020 viewed that the concessionaires and airlines are still being affected by the COVID-19 outbreak due to Thailand’s current air transport restrictions as well as incomplete recovery of both directly and indirectly aviation-related industries, including airlines and concessionaires operated at airports. 

The Meeting therefore resolved to approve an extension of time for implementing assistance measures for concessionaires and airlines affected by the COVID-19 outbreak, which can be detailed as follows: 

 

1. Extend time for implementing assistance measures for concessionaires and airlines in terms of office and state property rents, terminal and building service charges and fixed monthly concession charges: 

     1.1 In case that the concessionaires and airlines submit a letter to temporarily suspend their operations or that AOT’s airports are temporarily closed, AOT will extend time for exempting the collection of office and state property rents, terminal and building service charges and fixed monthly concession charges until 31 March 2022 (instead of 31 December 2020 as previously specified) or until the date the concessionaires and airlines inform their resumption of operations, whichever comes first. 

     1.2 In case of the concessionaires and airlines who still operate at airports under AOT’s supervision: 

          1.2.1 Offer a 50% reduction in office and state property rents for all tenants until 31 March 2022 (instead of 31 December 2020 as previously specified) 

          1.2.2 Collect terminal and building service charges based on a percentage rate of the office and state property rents which have been reduced by 50%.

          1.2.3 Apply the rates of office and state property rents and terminal and building service charges prescribed in the List of Rate of Charges for the Use of AOT’s Airports, Properties, Services and Other Facilities Issue 2016 for the calculation of reductions under items 1.2.1 and 1.2.2 

2. Extend time for implementing assistance measures for airlines in terms of the collection of charges pursuant to the law on air navigation 

     2.1 In case that the airlines request for suspended operations or that the airports under AOT’s supervision are temporarily closed, AOT will exempt parking charges until 31 March 2022 (instead of 31 December 2020as previously specified), provided that the exemption of such charges must be approved by the Minister of Transport. 

     2.2 Offer a 50% reduction in landing charges and a 50% reduction in parking charges for airlines that are still operating flights on all domestic and international routes until 31 March 2022 (instead of 31 December 2020as previously specified) 

     2.3 In case of charter flights, they shall be eligible for such assistance measures until 31 March 2022 (instead of 31 December 2020as previously specified). 

 

3. The extension of time for implementing assistance measures under items 1 and 2 shall be applicable to all concessionaires and airlines operating at all six airports of AOT, effective from the date of AOT Board of Directors’ approval (23 September 2020). 

4. AOT reserves the right to make any change, correction, or cancellation of conditions of assistance measures for concessionaires and airlines under items 1 – 3, whenever appropriate, in accordance with the situations and impacts caused by the COVID-19 outbreak. 

 

With regard to the revenue forecast, AOT previously submitted the Letter of AOT No. 12837/2020 dated 25 August 2020, informing the Stock Exchange of Thailand that the assistance measures for concessionaires and airlines affected by the COVID-19 outbreak were expected to cause a 42.21% decrease in revenue in fiscal year 2021, compared to that in fiscal year 2020 and a 188.13% increase in fiscal year 2022, compared to that in fiscal year 2021. 

However, the assistance measures for concessionaires and airlines under items 1 and 2 are projected to cause a 0.143% decrease in revenue in fiscal year 2021 and a 0.010% decrease in revenue in fiscal year 2022 from the previous forecast