AOT to sue PAD for airport damage

The board of Airports of Thailand (AOT) yesterday instructed the management to file a lawsuit against the People's Alliance for Democracy, seeking compensation for the damage suffered by six airports during the forced shutdown from November 25 to December 3.

Acting president Serirat Prasutanond said a preliminary damage survey showed that Suvarnabhumi had lost Bt50 million a day, Don Mueang Bt10 million and the other four airports a combined Bt4 million.

"The management has told us to sue the PAD and launch preventive measures. Preliminarily, the damage is Bt64 million a day plus lost opportunity cost. We're not sure about the exact damage claims as other losses must be incorporated, including the impacts on King Power and the airlines," Serirat said.

The lawsuit will be filed in the Civil Court by January, he said.

Due to the airport shutdowns, AOT agreed to waive rents on duty-free shop operators and pay compensation to operators and airlines. The exact amount is not known, Serirat said.

Earlier, the board of Thai Airways International also backed a plan for the national carrier to sue the PAD for about Bt20 billion.

Surachai Tharasithiong, permanent secretary of the Transport Ministry and THAI chairman, said yesterday that lawyers were still working on the lawsuit. He was unsure whether the filing could be completed this month.

Other than THAI, Finnair reported that damage from the closure of Suvarnabhumi was ¤4 million (Bt185 million).

Prateep Wichittho, Suvarnabhumi Airport's deputy director of operations, said that after resuming operations on December 5, passenger and cargo traffic had dropped from the pre-closure period. On average, the number of passengers was 55,737, down 44.36 per cent from 100,000. Daily air cargo was 2,395 tonnes, down 28.83 per cent from 3,365 tonnes.

"Though all 105 airlines had resumed services, the number of flights averaged 496 a day - 362 international and 134 domestic, a 25.91-per-cent decrease from 714 flights earlier," he said.

The closure is expected to lead to huge damage to the tourism industry as the number of international arrivals is expected to fall to below 10 million. To lure back tourists, THAI and the Tourism Authority of Thailand are preparing more packages.

Surachai said rebooking from the European market is now returning to the pre-airport-closure period and booking from Asian markets is rebounding. He said THAI had resumed nearly all flights between Bangkok and Europe.

Tourism associations said it would help if the authorities were to visa fees and hotels agreed to offer room-rate discounts or other benefits such as a one-night free stay.

Surachai said THAI would soon borrow Bt19 billion from financial institutions as its liquidity was severely damaged by the airport closures. Of the total, while Bt14 billion is needed as internal cash flow for long-term use, another Bt3 billion is for urgent matters.

THAI's board yesterday also approved the sale of used aircraft engines and spare parts worth US$8.9 million (Bt312 million) and considered the extension of the lease of two aircraft by another nine years.

In the aftermath of the airport crisis, Civil Aviation Department director-general Chaisak Angkasuwan resigned as an AOT director, effective on December 1.