AOT Extends Credit Term for Concessionaires and Airlines amid Prolonged Covid-19 Crisis

Airports of Thailand Public Company Limited (AOT) stated that the company will give additional support to concessionaires and airlines at all six airports under AOT’s supervision amid the ongoing Covid-19 crisis.

 

Reference is made to the Letter of AOT, informing the resolution of the AOT Board of Directors, in the Meeting No. 2/2021 held on Wednesday, 20 January 2021, regarding the assistance measures for concessionaires and airlines affected by the Coronavirus Disease 2019 (COVID-19) outbreak at all six airports under AOT’s supervision.

Such measures include an additional extension of a 6-month credit term of payment for concession charges for periodic payments during February – July 2020, thus totaling a 18-month credit term of payment, and those during August – December 2020, thus totaling a 12-month credit term of payment.

An additional extension of a 6-month credit term of payment also applies to office and state property rents, terminal and building service charges, landing and parking charges, and aircraft service charges for periodic payments during April – July 2020, thus totaling a 18-month credit term of payment, and those during August – December 2020, thus totaling a 12-month credit term of payment.

However, such extensions will end and cause the concessionaires and airlines to start making payments to AOT normally from August 2021 onwards.

 

Amid the ongoing COVID-19 crisis, the government has implemented strict travel restrictions to control the outbreak, causing a sharp decline in the number of flights and passengers, unusual operations of concessionaires and airlines and a lack of financial liquidity. They have then requested AOT to consider an additional extension of such assistance measures so that they can ensure continued operations.

The government has also implemented a policy to provide assistance to the micro entrepreneurs affected by the COVID-19 outbreak, while the Stock Exchange of Thailand and the Thai Listed Companies Association have issued a letter requesting AOT to consider assistance procedures for small and medium-sized enterprises (SMEs) to help support the Thai economy during the COVID-19 outbreak and establish measures to boost liquidity for trade partners, for example, an extension of debt collection period or a reduction in debt settlement period.

Therefore, the AOT Board of Directors, in the Meeting No. 10/2021 held on Wednesday, 21 July 2021, resolved to approve an additional extension of payment terms and installment payments for concession charges, office and state property rents, terminal and building service charges, landing and parking charges, and aircraft service charges, other than the resolution of the AOT Board of Directors, in the Meeting No. 2/2021 held on Wednesday, 20 January 2021, as follows:

 

1) Approve an additional extension of credit term of payment for concession charges, office and state property rents, terminal and building service charges, landing and parking charges, and aircraft service charges as follows:

1.1) Concession charges

1.1.1) For periodic payments during February – July 2020, an additional 5-month credit term of payment, thus totaling a 23-month credit term of payment, shall apply.

1.1.2) For periodic payments during August – December 2020, an additional 5-month credit term of payment, thus totaling a 17-month credit term of payment, shall apply.

1.2) Office and state property rents, terminal and building service charges, landing and parking charges, and aircraft service charges

1.2.1) For periodic payments during April – July 2020, an additional 5-month credit term of payment, thus totaling a 23-month credit term of payment, shall apply.

1.2.2) For periodic payments during August – December 2020, an additional 5-month credit term of payment, thus totaling a 17-month credit term of payment, shall apply.

 

2) Approve installment payments for concession charges, office and state property rents, terminal and building service charges, landing and parking charges, and aircraft service charges for the extended periodic payments under item 1, which shall not be deemed as delayed.

 

3) If any concessionaire and airline, who were once granted the right for the extension of credit term of payment for concession charges, office and state property rents, terminal and building service charges, landing and parking charges, and aircraft service charges, wish to receive the right for the extensions under items 1 and 2, they will have to submit a new request letter to AOT.

 

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