Eastern Aviation City project, U-Tapao airport still on track

Bangkok Airways has confirmed its commitment to U-Tapao International Airport and Eastern Aviation City Development project and is confident that construction will commence in mid-2025. The first phase is expected to be completed by 2029.

During a media briefing on Monday, Puttipong Prasarttong-Osoth, president of Bangkok Airways, explained that two contingency plans have been developed should the high-speed rail link between Don Mueang, Suvarnabhumi and U-Tapao airports not come to fruition.

He noted that progress on the U-Tapao airport and the Eastern Aviation City Development Project is currently stalled pending decisions on the high-speed rail project linking the three airports. The company has already invested 4 billion baht in the venture, which aims to create an entertainment hub featuring shopping centres, duty-free hotels, food courts and a Formula 1 racetrack, although no casino is included in the plans.

Despite the current lack of momentum, U-Tapao International Aviation Company (UTA) recognises the Special Economic Development Zone’s high potential and is thus committed to advancing the project. The first phase involves a joint investment of 15 billion baht to build terminal facilities, with projections for accommodating 8 to 10 million passengers annually within four years. However, if the high-speed rail cannot be constructed by the contract’s midpoint in 2025, UTA will need to discuss adjustments with the EEC board to align with new timelines and estimates.

The airline is actively negotiating detailed conditions with the Office of the Eastern Special Development Zone Policy Committee (ESDZPO), an independent public agency that governs the Eastern Economic Corridor (EEC), to ensure the project’s smooth progression.
 

The aviation city component of the project is also progressing well, with Bangkok Airways seeking partners to invest in hotels, shopping centres, and other amenities. The company is optimistic that the region’s strong economic growth and increasing tourism demand will drive the success of the project, even without the high-speed rail link.

The commitment follows Bangkok Airways’ report of strong operational performance for the first nine months of 2024, with passenger traffic rising by 10% compared to the same period in 2023. Additionally, the airline’s passenger load factor has improved, surpassing pre-pandemic levels.

The company’s positive outlook aligns with the robust growth of the Asia-Pacific aviation market. The International Air Transport Association (IATA) recently reported that the region is experiencing the highest average growth rate for international travel, with strong demand from both European and Asian markets.

To capitalise on this growth, Bangkok Airways plans to increase flight frequencies and introduce new routes, including the resumption of the Samui-Kuala Lumpur service in the fourth quarter of 2025. The airline is also leasing additional aircraft to support the increased demand during the peak travel season.

In a significant move to establish itself as a top regional airline in Asia and worldwide, Bangkok Airways is set to host the Asia-Pacific Airline Association's General Meeting, which includes the 69th AAPA Assembly of Presidents, as part of its strategic plans for 2025.

Puttipong highlighted that the upcoming event is designed to cultivate a cooperative aviation industry network, with an anticipated attendance of 200-300 participants, focusing on the critical integration of modern technologies and innovations necessary for adapting to the evolving sector.

The initiative seeks to address industry challenges and promote business growth opportunities while also offering a remarkable experience for visiting airline leaders, thereby reinforcing Thailand's ambition to become a prominent aviation hub in the region.