9 July 2010 | By: Mohamed Hairul Borhan

Thailand’s airport authority has opted to grant the rights to build and operate the proposed private jet terminals in Phuket and Chiang Mai to the private sector and will be releasing the terms of reference for interested bidders in mid-August.

Serirat Prasutanond, President for Airports of Thailand Plc (AoT), the main airport operator in the country, said that the proposed terminals should be completed within three years to meet the demand from VIPs, businesspeople and celebrities.

The two new terminals would also serve the needs of the rising number of private jet owners and charters from China and India, spurred by the two countries' growing wealth and business travel.

The proposed private jet terminals will be largely self-contained with their own customs and immigration facilities, and separated from the main terminals. In return for the rights, successful bidders are required to pay a concession to AoT.

While the terms of reference are being drawn up, Thai-registered companies will be eligible to participate in the bidding for the right to build and operate the facilities for at least 10 years.

Mr Serirat said that the decision to grant the rights to the private sector was a means to circumvent bureaucracy and likely delays if it was to carry out the developments itself.

Plans for the two new private terminals come about after the successful launch of Thailand’s first private jet terminal at Don Mueang airport in March.

The THB50 million (S$2.13 million*) terminal, complete with a spacious luxury lounge, two hangars and a full range of facilities and services for private aircraft, was built by Mjets Ltd. The company won the bid to operate the facility under a five-year concession by offering AoT a payment of THB35.7 million for the period.

However, Mr Serirat said that AoT will not build similar private jet terminals in other provincial airports operated by the company, namely Hat Yai and Chiang Rai, in the near-to-medium term as they do not “offer the potential for such development”.

*Exchange rate correct as at 9 July 2010