CHARM OFFENSIVE - Orient Aviation

s p e c i a l r e p o r tTIME FOR ACTIONIt has been forty-one years in theplanning, but a cloud still hangs overthe future of Bangkok’s proposednew international airport hub. Now,international and local aviationofficials are warning further delaycould cause Thailand serious economicdamage. TOM BALLANTYNE reportsfrom Bangkok.When Thailand’s Prime Minister,Thaksin Shinawatra, announcedin July he would step in andpersonally oversee the US$2.6 billion NewBangkok International Airport project, ensurecosts were kept down and that constructionwould be completed in 2004, it brought norelief to the frustrated airline community inBangkok.They all know about the political machinationsthat have dogged the developmentfor more than four decades. They know onlytoo well there are no guarantees that Thaksinwill be prime minister in four years time andthat, if not, his replacement may have differentideas. Ultimately, they will only believetheir own eyes when the doors open towelcome the first passengers.Dogged by controversy, construction ofSuvarnabhumi Airport – previously knownas Nong Ngu Hao – has been repeatedlypostponed and even cancelled at one stage.There is now growing concern in Thailandand elsewhere that if it is not completed thistime, the ramifications could be serious forThailand’s position in the region.The International Air Transport Association(IATA) has expressed its concern.Corporate communications director, WilliamGaillard, has warned any further delayswould “not only damage the tourism andaviation industries, but also the country’seconomy”.Lt-General Bunchon Chawansin,the spokesman for the New BangkokInternational Airport Company (NBIAC), saidanother construction postponement couldjeopardise Bangkok as a global airport hub.He disclosed British Airways had warneda delay would force airlines, particularly longhaultrans-continental flights, to switch theirhub from Bangkok to Singapore.The existing Don Muang InternationalBangkok’s Don Muang airport will reach its design capacity this yearAirport is expected to reach its saturationpoint of 35 million passengers this year. “DonMuang airport is getting too congested.Flights, particularly on the Australian routes,which have to stay overnight, are likely tochoose other countries as their hubs if thenew airport is not completed on time,” saidLt-Gen Bunchon.Thailand’s need for a new facility hasgrown critical as neighbouring nations raceahead with development of their own airporthubs. Singapore Changi International Airportcontinues to expand and Malaysia’s greenfieldsKuala Lumpur International Airport hasbeen in operation for three years. Other majorairport developments in the region, such asHong Kong and Seoul, have left Bangkok wellbehind in international airport facilities.The Suvarnabhumi project was firstlaunched in 1960. The plan has since passedthrough the hands of 15 premiers and 30cabinets. There have been disputes about itssize and design, alleged corruption in contractawards and if Thailand could afford a newairport. During the Asian economic crisis theproject was cancelled altogether in favour ofa scheme to expand the existing airport.IATA said projections suggest Thailandcould lose 9.8 million business and leisurevisitors as well as 3.8 million other travellersin transit to other destinations if its airportsare unable to handle the traffic. It warnedadditional losses would be substantial ifthe deadline was not met, especially ifDon Muang was not upgraded to handleincreasing traffic in the interim.Even if the Suvarnabhumi airport doesopen on time, the second phase will not beready until 2006, which means Thailand willoperate a split-airport system for more thantwo years. The plan involves opening thefirst phase of the new airport in 2004, withannual capacity of 30 million passengers, andthe second phase in 2006, with capacity for50 million passengers. To operate from bothairports airlines will face huge cost overruns,according to IATA.Don Muang now handles about 80 airlines,but several carriers, including Germany’sLufthansa, have already moved their regionaloffices to Singapore from Bangkok.While many industry insiders remainsceptical the airport will be completed onschedule, Lt-Gen Bunchon is optimistic aboutthe prospect. After prime minister Thaksin visitedthe site the airport spokesman declared:“He is the first premier to come to the site.This is a good omen. Malaysian and Singaporeanairports were completed on schedulebecause their premiers were hands-on.”Indeed, Thaksin has stepped in to personallynegotiate with the project’s majorfinancier, the Japan Bank for InternationalCooperation (JBIC), to ensure it accepts anamended – and cheaper – design for one ofthe facility’s most controversial projects, thepassenger terminal. One of the difficultiesin implementing plans is under its lendingterms, the JBIC requires Thailand to seek itsapproval for the selection of all the project’scontractors.Thaksin is insisting the terminal design bealtered to make more use of local constructionmaterials, reducing the cost from US$1.2 billionto US$790,000, but this adjusted designhas been opposed by the JBIC. “I will convincethe JBIC to accept changes to the passengerterminal design and the accompanying reducedconstruction costs,” said Thaksin.Whether he can remain in office longenough to make good his promises is anothermatter altogether.40 | Orient Aviation | September 2001