Products and services of the Company can be divided into core businesses and segments as follow
The Company owns and operates Samui Airport, Trat Airport and Sukhothai Airport.
The only privately-owned public airport in Thailand.
The Samui International Airport is our most important airport in terms of passenger traffic and contribution to income. We commenced operations at the Samui Airport in 1989 as the only privately-owned public airport in Thailand. We commenced operations with the Samui International Airport Incorporation License.
In 2005, the Samui International Airport expansion was completed in order to increase the passenger capacity accommodation. In 2017, Samui International Airport recorded 2.6 million passengers in and out and over 31,000 flights.
This tables shows daily flight volume in and out of Samui International Airport in December 2017.
|Airlines||Flights per day|
The Samui International Airport operates 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 International 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.
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. 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 of the 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 International Airport in accordance with the terms and conditions under the Sub-lease Agreement and the service agreement dated November 24, 2006 (the “Service Agreement”). Under the Sub-lease Agreement, the Samui Property Fund sub-leased the Samui International 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 International 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 as equipment for maintenance of runway, communication system and other systems) in the Samui International Airport to the Samui Property Fund for a period of 30 years from the date of the Service Agreement. The Company also agrees to pay to the Samui Property Fund, (i) rent in an amount of THB 26.1 million per month and (ii) a service fee, which consists of a fixed service fee in the amount of THB 21.4 million and a variable service fee in an amount calculated based on the formula specified in 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 International Airport).
Major revenues of the Samui International 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 International Airport.
Since we granted PGGS the right to provide ground services for other airlines at the Samui International 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 International Airport operation will be paid to the Samui Property Fund as rent, fixed service fee and variable service fee and they will in turn be paid to us as dividend income.