The delay in operations of Suvarnabhumi International Airport has hit Bangkok Aviation Fuel Services Plc (BAFS), an aircraft-refueller, causing forecast net profit to drop by 6-7 per cent and revenue to increase by only 3 per cent this year.

Managing director MR Supadis Diskul said after the shareholders' meeting late last week that demand for jet fuel at Bangkok International Airport was forecast to grow by an average of 3 per cent to 4.2 billion litres this year and the company had projected its revenue growth accordingly.

The delay in opening Suvarnabhumi till June has hit the company's operational costs, particularly by rising interest rates, which it will start paying to creditors in July. The interest-rate burden alone is costing BAFS Bt10 million per month.

This will reduce net profit by 6-7 per cent this year. The company reported revenue of Bt1.22 billion and net profit of Bt417.57 million last year.

Supadis said the company planned to reduce other expansion to maintain net profit. If BAFS cannot reduce other costs, it may consider increasing its service charge from the current US$0.258 a US gallon (Bt0.26 a litre).

"We will be negotiating with Airports of Thailand Plc to reduce its rental fee for the pipeline in Don Muang Airport to maintain our costs. If that cannot done, we may consider increasing our service fee," he said.

However, Supadis said that if the company had to raise its service fee, it would keep it lower than other international airports in the region, though it could not say by how much.

Hong Kong International Airport at Chek Lap Kok charges a service fee of $0.055 a gallon and Singapore's Changi Airport $0.059.

Supadis said the company had no new investment plans for this year and the next but might invest Bt100 million in building a new depot at Chiang Mai International Airport in 2008, depending on demand over the next two years.

"We have bought land near Chiang Mai International Airport for construction of the new depot if traffic growth supports higher demand," he said.

BAFS refuels aircraft at Don Muang, Sukhothai Airport and Samui Airport.

Somluck Srimalee

The Nation