The Department of Airports (DoA) is extending land lease periods at its facilities, a move designed to foster broader development beyond aviation services and transform these locations into multifaceted regional hubs for transport, tourism, and business.
Expanding Airport Potential
This initiative, spearheaded by the Ministry of Transport and the DoA, aims to significantly boost revenue streams from both aviation-related and non-aviation activities at regional airports. Efforts are also underway in collaboration with domestic and international carriers to introduce new flight routes, enhancing connectivity and stimulating economic growth in the surrounding regions.
Streamlining Investment and Development
To facilitate greater investment, the Transport Ministry has championed administrative reforms to remove obstacles that have previously hindered business development on airport-owned land. A key development in this effort is a memorandum of understanding between the DoA and the Treasury Department. This agreement grants the DoA expanded authority to manage state-owned land situated within and adjacent to airport premises.
Key Lease Agreement Enhancements
Under this new framework, the DoA is now empowered to directly negotiate and sign lease agreements and public-private compensation contracts with private investors for projects valued up to 500 million baht. Crucially, the agreement introduces substantially longer lease terms, moving away from the previous three-year maximum.
Land located within airport boundaries can now be leased for up to 10 years. For land situated outside airport perimeters, lease periods are extended to either 20 or 30 years, with the specific duration determined by the size of the area and the type of business planned.
