After proposing the new terminal about a month ago, the three leading low-cost operators, AirAsia, Nok Air and One Two Go, learned of the green light for the new building at a meeting yesterday with the Civil Aviation Department and related agencies. Construction is expected to begin in the next few months.

Earlier, the government decided that all domestic, international, and low-cost airlines would be moved from the old Don Muang Airport to Suvarnabhumi in time for full-scale commercial operations to kick off at the new airport on September 28.

Some low-cost operators said they preferred to stay at Don Muang because of the lower operational costs there.

However, Airports of Thailand Plc (AOT), which runs both airports, has decided to move all airlines to Suvarnabhumi and close all operations at Don Muang except maintenance work and private jet traffic.

AirAsia chief executive Tassapon Bijleveld said the Transport Ministry has approved development of the new terminal and the Civil Aviation Department and AOT will be responsible for its construction.

Alongside the striking architecture of Suvarnabhumi's main terminal, what does Tassapon expect for the appearance of the new low-cost terminal?

"Building the low-cost terminal is so easy," he said. "We need a space about the size of a football field with an uncomplicated roof."

He said the three low-cost operators wanted their own terminal because of their special needs and, in particular, lower costs than other airlines will pay at the new airport.

The total number of passengers carried by the three low-cost airlines will be between five million and six million this year and this is expected to rise to 10 million in the next two years, he said. The three airlines generate revenue of Bt5 billion and this will gradually increase in line with passenger growth.

Both Singapore and Malaysia have recently opened low-cost terminals at their main airports. In Singapore, passengers using the main airport terminal pay an airport tax of US$14 (Bt530) per person, compared to $7 (Bt265) per person when using the low-cost terminal.

AirAsia expects its total number of passengers to increase from 1.8 million last year to three million this year. However, profit growth will decrease because of higher costs.

The three no-frills airlines are talking about increasing their fares and fuel surcharges soon, in the light of increased operating costs arising from oil price rises.

Suchat Sritama

The Nation