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Products and services of the Company can be divided into core businesses and segments as follow

  1. 1. Airline Passenger Services

  2. 2. Airport-related Business

  3. 3. Airport Business

The Company owns and operates Samui Airport, Trat Airport and Sukhothai Airport.

The only privately-owned public airport in Thailand.

The Samui Airport is our most important airport interms of passenger traffic and contribution toincome. We commenced operations at the Samui Airport in 1989 as the only privately owned public airport in Thailand. We commenced operations with the Samui Airport Incorporation License.

In 2005, we completed an extension to the airport which now allows the airport to handle up to 16,000 passengers per day and six million passengers annually. In 2015, the Samui Airport served approximately 2 million passengers and 27,000 flights.

This tables shows flights into the Samui Airport as of December 2015, with details as follow

  Flights per day
Bangkok Airways 36
Thai Airways 2
Silk Air 10(1)
Firefly 1

Remark

(1) Flights per week

The Samui Airporto perates 16 hours a day. The total area of the airport’s premises is approximately 600 rai. The airport has one operating runway, with a length of 2,060 meters. The Samui airport has four taxiways with an area of approximately 28,000 square meters.

The airport can accommodate ATR 72-500/72-600, Airbus A319 and Boeing 737-400 aircraft, as well as business and private jets.

In the present, The Thai Department of Civil Aviation, based on the approved Environmental impact assessment by the Office of Environmental Policy and Planning, permitted number of flights in and out Samui Airport to 50 flights per day.

The airport has six terminals, which cover an area of 12,113 square meters, of which 1,939 square meters is commercial space. Within the arrival terminal, there are eight immigration officers on duty for 16 hours a day. Since August 2015, The Airport has provided more convenience to passengers by adding 10 common-use self-service (CUSS) kiosks at departure terminal.

In November 2006, we leased the assets of the Samui Airport to the Samui Property Fund for a period of 30 years from November 24, 2006 in accordance with the terms ofthe Long-Term Lease Agreement. Under the Long-Term Lease Agreement, we have agreed to, at our expense, among others, maintain the general environment of the Samui Airport and perform required marketing activities.

The Company continues to act as the operator of the Samui Airport in accordance with the terms and conditions under the Sub-lease Agreement and the service agreement dated November 24, 2006 (the “ServiceAgreement”). Under the Sub-lease Agreement, the Samui Property Fund sub-leased the Samui Airport to us for a three year term, renewable for up to nine additional three year terms upon agreement by both parties. Accordingly, we have the ability to sub-lease the Samui Airport for aggregate term of not exceeding 30 years. Under the Service Agreement, the Company agrees to provide services relating to equipment, machinery and other systems (such a sequipment for maintenance of runway, communication system and other systems) in the Samui Airport to the Samui Property Fund for a period of 30 years from the date o fthe Service Agreement. The Company also agrees to pay to the Samui Property Fund, (i) rent in an amount of THB26.1 million per month and (ii) a service fee, which consists of a fixed service fee in the amount of THB21.4 million and a variable service fee in an amount calculated based on the formula specifiedin the Service Agreement. Such formula is based on several factors, including the number of the departing passengers and the aircraft (excluding the rent of commercial areas within the Samui Airport).

Major revenues of the Samui Airport are obtained from passenger service charges, aircraft landing fee, aircraft parking fee and ground handling services fee charged to other airlines operating at the airport, and the rent of commercial areas within the Samui Airport.

Since we granted PGGS the right to provide ground services for other airlines at the Samui Airport, revenues from ground service charges provided to other airlines will not be directly paid to us. Instead, we obtain revenue from granting PGGS such rights. A substantial portion of our revenue from the Samui Airport operation will be paid to th eSamui Property Fund as rent, fixed service fee and variable service fee and they will in turn be paid to us as dividend income because we hold a 25.0% ownership interest in the Samui Property Fund.