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Suvarnabhumi » Airports of Thailand board rejects plan to sell its stake in Airport Associate Co

Sunday, July 20th, 2008

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The board of Airports of Thailand (AOT) yesterday rejected a plan put forward by the company’s management to sell its 10% stake in Airport Associate Co (Asso) to end legal difficulties.

The AOT management proposed the share sale to Car Mac Co, which holds the remaining 90% stake in Asso, in the meeting of the AOT board members chaired by Gen Saprang Kalayanamitr.

The sale of AOT’s 10% stake proposed by the company’s management could bring in nearly four million baht.

However, the AOT board and its legal adviser argued that the legal dispute with Asso executives is being tried by the Supreme Court and is likely to be concluded within the year. The wait will result in legitimacy, according to acting AOT president Kulya Pakakrong.

Asso is a joint venture between AOT and Car Mac. It was contracted to operate limousine services at the international terminals of Don Muang airport. The eight-year deal expired on Nov 30, 2004.

AOT filed a lawsuit in 2001 against Asso executives Kasem Pootrakul and his wife Nantawan from Car Mac for embezzling funds from Asso, demanding 40 million baht in compensation.

The Criminal Court and the Appeals Court sentenced the couple to 10 years in jail and ordered them to pay 8.26 million baht in compensation to Asso shareholders.

An AOT board member said the board’s decision was based on ensuring justice was served, not because they wanted to reap the compensation money.

Selling the 10% stake to Car Mac would give a chance for the withdrawal of the lawsuit and the accused would be freed, the source said.

The AOT management also reported its finding to the board yesterday that the Loxley-ICTS consortium underperformed in its security guard contract for Suvarnabhumi Airport.

Loxley-ICTS was awarded two 10-year-contracts to provide security guards and other security measures. AOT plans to find a new contractor to provide security guards for the airport, Mrs Kulya said.

Both of Loxley’s contracts were originally signed for 10 years, which is deemed too long, she said. The AOT board is due to decide on the reduction of Loxley’s work at the airport next Tuesday.

As for the problem of cracked runways and taxiways at Suvarnabhumi airport, the AOT board has formed an ad hoc committee to speed up solutions.

The committee will accelerate the drainage of underground water beneath runways and taxiways to contain surface damage. The work should start next week (Mar 12, 2007).

Gen Saprang (One of the Coup Leaders) also insisted in the board meeting yesterday that his recent trip to inspect security at airports in England and Germany was genuinely aimed at learning effective security measures.

He denied allegations that the trip of new six AOT board members and seven others who accompanied them was more related to a vacation than business.

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