Iraq, Sudan deals to build 'airport cities'
AMORNRAT MAHITTHIROOK
Thai Airport Ground Services is planning to expand heavily in the Middle East after the company recently secured contracts to provide airport services in Iraq and Sudan.
"Our aim is to become an 'airport city' provider and expand into the Middle East market," said Ladya Uriya, the president and chief executive officer of Thai Airport Ground Services (TAGS).
TAGS recently secured a seven-billion-baht contract to provide airport services at Al Najaf International Airport in Iraq to begin in March 2009.
Mr Ladya said the company also would provide ground services for six airports in Sudan in a deal valued at over 10 billion baht, excluding potential revenues from future air cargo and customs-free zone services.
The Al Najaf airport is run by the Kuwaiti company Al-akila Investment under a 30-year concession awarded by the Iraqi government. TAGS in turn has been appointed to manage airport services under a 10-year contract.
Mr Ladya said TAGS had sent more than 100 Thai staff to Iraq to help set up operating systems and procedures at the airport in preparation for the start of commercial services next year.
He said TAGS expected to employ at least 1,200 Thai staff at the Iraqi airport through the term of the deal.
The Sudan project involves six international airports currently open and run by the Sudanese government.
Mr Ladya said TAGS had been retained to upgrade the operating systems at six airports under a memorandum of understanding signed with the Sudanese tourism minister.
TAGS plans to send a team to Sudan in January to begin a survey of current airport systems and equipment.
Mr Ladya said airport authorities in both Iraq and Sudan have also indicated interest in having TAGS update their air cargo and customs-free zone systems to expand their commercial cargo and logistics handling capabilities. He said TAGS would leverage its experience in managing the free zone at Suvarnabhumi Airport, one of the largest in the world, for the Middle East projects.
TAGS, founded in 1990 by the Airports Authority of Thailand (now Airports of Thailand Plc), offers services including cargo and passenger handling, technical aircraft and line maintenance. Customers include United Airlines, Northwest Airlines, Qantas, Lufthansa, Japan Airlines, UPS, DHL and FedEx.
Mr Ladya, who joined TAGS at the beginning of the year, said the company's vision was to continue to expand to overseas markets, particularly in the Middle East, as a leading international airport services provider.
"Our target is simple - to be the best total solutions provider for the aviation industry in Asia," he said.
Mr Ladya acknowledged that the company's image over the past few years had been hurt, but insisted that the firm's future remained bright given its competitive advantages in terms of experience and staff.
TAGS has been forced to expand overseas after it failed to win the main ground services contract for Suvarnabhumi Airport. The company is a major subcontractor for nearly all operations at the airport, including running airport lounges for Thai Airways and supplying baggage trolleys for AoT. TAGS also manages ground handling services for the Phuket and Chiang Mai airports.
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