Political Turmoil Grounds U-Tapao Rayong–Pattaya International Airport Development
A political impasse has halted the ambitious development of U-Tapao Airport. U-Tapao International Aviation Co. Ltd (UTA) seeks a one-month reprieve as the Eastern Economic Corridor (EEC) stalls on plan approvals. If the situation doesn’t resolve, the company threatens to terminate the contract and demands compensation of over 4 billion Thai baht for previous investments.
Puttipong Prasarttong-Osoth, head of Bangkok Airways and a stakeholder in UTA, spoke out on Monday, explaining that political shifts are holding back Cabinet approval for the Eastern Aviation City project. This uncertainty hampers progress, with UTA aiming to realign the project with current passenger trends and expansion plans.
In an effort to ease these delays, Puttipong proposes granting the EEC a month for the new Cabinet to settle in, hopeful for a nod from the powers that be. If UTA fails to secure approval, it could terminate the entire deal and request a refund from the EEC for its substantial 4 billion baht outlay.
Despite multiple requests for patience from the EEC, UTA remains cooperative but firm, stressing the project’s significance. However, UTA wants to remove the connection between the airport project and the slow-moving high-speed rail initiative, arguing that it shouldn’t be a roadblock.
UTA has also aired grievances about issues affecting private sector incentives. These include tax breaks, liquor licensing for food outlets, and smoother processes for work permits—all seen as essential to drawing investment and business to the area.
Adapting to post-pandemic realities, UTA advocates adjusting U-Tapao’s passenger terminal capacity drastically. Instead of the proposed 12 million, UTA recommends starting at 3 million, aligning more realistically with current figures and AOT’s Suvarnabhumi Airport expansion.
The plan is to eventually scale up to 60 million over a 50-year timeline as demand dictates. Presently, U-Tapao is managing 400,000 passengers annually against a capacity for 2 million, making a big build-out impractical. UTA emphasises a phased approach, matching terminal size with passenger growth organically, reported The Nation.
With the airport serving a fraction of its proposed capacity, the push is on to right-size the initial development. Achieving a streamlined kick-off with a 3-million-capacity terminal will pave the way for expansions as the traffic scales up. This approach promises more sensible and efficient use of resources, taking practical steps towards future growth.
The situation remains fluid, with UTA eager for swift resolution. For now, the fledgling aviation project endures political turbulence, with eyes fixed on potential liftoff.
Source: https://aseannow.com/topic/1371880-political-turmoil-grounds-u-tapao-airport-development/#google_vignette
Adapted by ASEAN Now from The Nation 2025-09-03
