The government has moved to extend commercial land lease terms at 28 regional airports to as long as 30 years in a move aimed at attracting private investment and generating more revenue from airport operations.
Deputy government spokeswoman Lalida Persvivatana said the initiative forms part of efforts to expand the role of airports operated by the Department of Airports (DoA) beyond aviation services and develop them into regional transport, tourism and business hubs.
She said the Transport Ministry and the DoA have been working to increase revenue from both aeronautical and non-aeronautical activities at regional airports. The agencies have also worked with domestic and international airlines to promote new domestic, cross-regional and international routes to improve connectivity and support economic activity in surrounding areas.
To support investment, the Transport Ministry has pushed for reforms to ease administrative restrictions that have limited business development on airport land.
This led to the signing of a memorandum of understanding between the DoA and the Treasury Department, giving the agency greater authority to manage state-owned land within and around airport premises.
Under the agreement, the DoA can directly sign lease agreements and public-private compensation contracts with private investors for projects worth up to 500 million baht.
The agreement also significantly extends allowable lease periods.
Previously limited to a maximum of three years, leases can now be granted for terms better suited to long-term investment. Land within airport premises may be leased for up to 10 years, while land outside airport boundaries may be leased for up to 20 or 30 years, depending on the size of the area and the nature of the business.
