Siam Land Flying Co (SLF), the private jet charter subsidiary of Charoen Pokphand (CP) Group, recently secured a final permit from Airports of Thailand Plc (AoT) to develop fixed-base operator (FBO) facilities.
An FBO operator is an entity given the rights by an airport authority to provide aeronautical services such as fuelling, hangaring, tie-down/parking, rental, maintenance and other services for corporate and private aircraft.
The permit was granted exclusively to SLF for a 30-year period under build-transfer-operate (BTO) terms, Monrudee Gettuphan, Director at Phuket International Airport, told the Bangkok Post.
Under BTO, SLF is required to turn over ownership of the facilities, to be connected with Phuket airport, to AoT once construction is completed, at which time the firm can then assume operations.
SLF is also contractually bound to complete the construction within 27 months of Feb 18, 2017, the date when the accord was concluded.
In return for the rights to build and operate the facilities, the company must share revenue derived from their operation based on a certain percentage of flights handled with a minimum guaranteed amount.
Ms Monrudee made clear that AoT has not set aside any land from Phuket airport’s premises for the SLF project, which spans 17 rai.
SLF is using two plots – seven rai that was bought and 10 rai of adjoining land rented from a landlord –as the site for the development.
As stipulated in the deal, SLF must turn over the rights to those two plots to AoT as well, Mrs Monrudee said.
SLF executives could not be reached for comment, but industry executives estimate the cost of the SLF project at more than B200 million.
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