AOT board to mull disposal of stakes in five companies

       Airports of Thailand's board is expected to decide tomorrow whether the company should dispose of stakes in five companies in order to avoid conflicts of interest, an AOT source said yesterday.
       The five companies are Thai Airport Ground Services, in which AOT has a 28.5-per-cent stake; King Power Duty Free, in which it holds 5 per cent; Airport Duty Free (10 per cent); Airport Associate (10 per cent); and Fuel Pipeline Transportation (1.38 per cent).
       "The share-disposal suggestion is the result of a study by a working committee chaired by AOT director Prasong Poontaneat. The study suggested AOT should dispose of shares in five of its 11 subsidiaries and affiliated companies, due to possible conflicts of interest," the source |said.
       The source said the committee had concluded AOT could maintain stakes in the remaining six companies, as there were no signs of conflict of interest.
       The six companies are Suvarnabhumi Airport Hotel (60-per-cent holding), Thai Aviation Refuelling (10 per cent), Bangkok Aviation Fuel Services (4.94 per cent), Phuket Kitchen (10 per cent), Don Mueang International Airport Hotel (9 per cent) and Trade Siam (1.5 per cent).
       AOT operates Suvarnabhumi and four other international airports in Thailand.
       Meanwhile, the board will also consider the management's proposal to operate a ticket-screening service. AOT had planned to outsource the service but now considers that operating the service itself will save on maintenance costs.
       The source said the board would also consider a new marketing campaign that would see AOT provide more benefits to certain airlines. Under such a campaign, airlines with a high number of passengers passing through its airports would enjoy special landing and parking fees.
       AOT had planned to provide special fees across the board but now considers this would make too much of a dent in its revenue.
       AOT posted a net profit of Bt1.47 billion for the quarter from April to June, against Bt7.3 billion in the same period last year.
       The full-year net profit is also expected to drop, due to a |sharp decrease in the number of travellers.
       It estimates the number of international arrivals this year will drop from last year's 14.6 million to between 12 million and 13 million, due to the global economic crisis and domestic political turbulence.