PHUKET: Charoen Pokphand (CP) Group’s plan to consolidate its aviation-related business is becoming a reality. Subsidiary Siam Land Flying Co (SLF) has won approval from Airports of Thailand Plc (AoT) to build and run a private jet terminal and provide support services to general aviation operators at Phuket airport.

Bangkok Post
Monday 27 July 2015, 09:16AM

Phuket airport will get its first dedicated private jet terminal to be built by Charoen Pokphand Group’s subsidiary Siam Land Flying Co. Photo: Airports of Thailand
Phuket airport will get its first dedicated private jet terminal to be built by Charoen Pokphand Group’s subsidiary Siam Land Flying Co. Photo: Airports of Thailand
When completed, the new facility will be the second of its kind in Thailand after the one at Bangkok’s Don Mueang airport run by Mjets Ltd.
In return for the right, AoT has accepted SLF’s offer to invest in building the facility and then transferring ownership to the state-controlled airport operator before being allowed to operate the facility over a 30-year period.
In addition to the “build-transfer-operate” scheme, SLF must also provide a profit-sharing deal based on gross revenue at a progressive rate payable on a monthly basis, senior AoT executives told the Bangkok Post. SLF has already obtained a seven-rai plot adjacent to Phuket airport for the development of the terminal and fixed-base operator (FBO) facilities. FBO refers to the rights granted by an airport authority to an entity to provide aeronautical services such as fuelling, hangaring, tie-down and parking, aircraft rental, aircraft maintenance and other services for corporate and private aircraft.

SLF is negotiating for the purchase of 10 more adjacent rai to embark on full-scale development. The company’s ability to secure land is key to the project as the AoT has long maintained there is no nearby land available for a private jet terminal and FBO facilities. The AoT also insists there is no room within airport grounds to accommodate such facilities. SLF attaining the right to annex its facilities to the Phuket airport was seen as the most crucial part in realising the venture, as it allows private aircraft access to the airport’s runway, taxiway and other common facilities. A draft accord between SLF and AoT is under consideration by the Office of the Attorney General, whose approval is needed before an agreement can be clinched. Endorsement is expected over the next two months, said senior AoT executives. The project cost is estimated at B200 million, with facilities operating in 18 months.

SLF has engaged in private aircraft charters and air ambulance services for 24 years. The private jet terminal and FBO, though considered a tiny part of CP’s huge business empire, is seen as a move fulfilling patriarch Dhanin Chearavanont’s passion for flying. Mr Dhanin is a frequent private jet flyer who owns three jets – a Gulfstream 650, Bombardier Global Express and Dassault Falcon 2000.