Organisational Analysis on

Airports of Thailand Public Company Limited (AOT)

By

Warit Senawat 5803640118

Nattanon Karnjanasilaroj 5803640191

Pholphat Boonjun 5803640324

Vichayutt Patikarnsakul 5803640779

PI343 Strategic Planning and Management

Professor Tavida Kamolvej

July 23, 2017

Introduction

Aviation industry has been cutting edge of human innovation for hundreds of years

its facilitate social, economic, scientific, and cultural exchanges throughout the world. In

order to make aircraft take off and landed it need runways in which in the past, large area of

any plain field can be used as the runway. But as time passed by the industry growing further,

the aircraft can transport many people at once. The airport has been created, which is the

space on land or above the water that serve as the place for the plane to takeoff and landing

and for the passenger to get on and off the aircraft. Over 800 million passenger and 10

million aircraft passing through the airport each year. It synchronise the world transportation

and commerce. Its impact are far reaching even beyond the aviation industry. The multibillion

dollar transportation infrastructure facilitate the globalisation to bring the big wide world to

the smaller community, more interconnected, more opportunities.

Airport is major transport infrastructure and a significant sector of the economy.

Airport has the ability to expand business activity in their area and promote future

development. The development of airport infrastructure is important to maintain and develop

the continuous growth of the country. The adequate airport capacity are required to cover the

higher demand of air transport. There will be the significant increase of air traffic in

Southeast Asia due to the economics growth in the region from the collaboration of ASEAN

member in establishing ASEAN economic community and the emergence of China and India.

These phenomenon will attract traveler and investor from around the world to the region.

Majority of the visitors using air travel since it is convenient, fast and accessible. In addition

to the shorten of traveling time comparing to other mode of transportation, the bursting of

low-cost airline also help enable people to travel more frequently. Not only airport become

the imperative gateway to support the growth of the region but also it become fundamental

!1
infrastructure to enhance the capabilities of the country to compete in the global stage. These

are the reason why we are interesting to do this paper relevance to the aviation industry since

its bring the world to the age of globalisation, imperative to business sector, directly affect

the growth of the country and also the Thai government plan, the 20 years strategic plans in

which aims to enhance the capabilities to compete in global stage, develop the business and

service sector, invest in the infrastructure and connect the world to Thailand. The biggest

organisation that provide the airport operation service in Thailand is the Airport of Thailand.

The leader of airport business in Thailand, Airports of Thailand Public Company

Limited (AOT), were created by the transformation from Airports Authority of Thailand

(AAT) as the result of corporatization on 30 September 2002. AOT main business consists of

Managing, Operating and developing airports in Thailand. The main sources of income of

AOT coming from 2 ways which are aeronautical revenues and non-aeronautical revenues.

Aeronautical revenues are the income generating from the aviation-related business such as

landing and parking charges, aircraft service charges and passengers service charges, the fees

that airlines have to pay to the airport and the facilitates such as contact gate and aerobridges.

In 2016 it is 60% of the income of AOT. Another 40% came from non-aeronautical revenues

which include office and state property rents, services revenues and concession revenues

which come from airport store, fuel services, catering, car rental services, restaurant, parking,

advertisement, the currency exchange services. Moreover, there are companies outside the

organization supporting the operation of AOT such as Thai Airways International and

Worldwide Flight Services Bangkok Air Ground Handling Company which provide ground

services.

!2
 There are 6 airports under the responsibility of AOT which includes Suvarnabhumi

Airport (BKK), Don Mueang International Airport (DMK), Phuket International Airport

(HKT), Chiang Mai International Airport (CNX), Hat Yai International Airport (HDY) and

Mae Fah LuangChiang Rai International Airport (CEI) all of these are providing the service

for both domestic and international flight. Suvarnabhumi Airport is operated as the national

airport which has the capacity to service up to 45 million passengers and 3 tons of cargo each

year also support 76 flight per hour. In 2016 of all the passengers using AOTs airport,

Suvarnabhumi Airport has 46% of all the passengers which increase 11% from 2015.The

airport facilitates 111 airlines in which 8 of them are only for cargo. In 2016 the quantity of

international air travel has increased as the result of the stable political situation in the

country while the passenger in domestic flight has shifted their behavior to use a low-cost

carrier at Don Mueang International Airport. Even so, Suvarnabhumi still has increased the

number of passenger and flight also the number of cargo especially domestic cargo in which

increased 13% from 2015. Don Mueang International Airport services 20 airlines, 14 of them

are a low-cost carrier. The low-cost carrier has grown incredibly fast both in the number of

flights, routes, and passengers. The price competition between the airlines to attract customer

are harsh as the result the number of air traffic is high. Its increased 12% and the cargo

quantity increased 60% from 2015. AOT consists of 4 regional airports which include Phuket

International Airport service 50 airlines the number of flight has increased 15% both carrier

flight and charter flight. Both the number of passenger and cargo has increased up to 17%

and 12% respectively. Chiang Mai International Airport services 23 airlines even though the

number of international cargo has dropped but the number of passenger travel through the

airport has increased 14%. Hat Yai International Airport service only 7 airlines, it is the

!3
smallest airport in AOT responsibility. And Mae Fah LuangChiang Rai International Airport

services 8 airlines.

The table below is the comparison between the number of flight, passenger and

cargo of AOTs 6 airport of 2015 and 2016 which can be seen that the number are higher in

every airport imply that there are more demand of airport service.

Airport Passenger Flight Cargo (Tonnes)

2015 2016 2015 2016 2015 2016

BKK 52,384,217 55,473,021 310,870 333,263 1,240,320 1,263,013

DMK 28,589,312 34,689,890 214,809 240,601 40,787 65,104

HKT 12,538,042 14,722,010 82,000 94,989 37,484 41,858

CNX 8,069,918 9,208,256 62,626 67,134 19,178 19,385

HDY 3,568,093 3,871,468 24,258 26,862 11,817 12,349

CEI 1,640,332 1,959,353 12,799 14,073 4,624 5,798

Total 106,789,914 119,923,998 707,362 776,922 1,354,210 1,407,507

AOT currently have 6,044 staff. Last year AOT have 172.2 Billion Baht as an asset.

The profit has increased every year from 12.2 million baht in 2014 to 18.7 Million Baht in

2015 and 19.6 million baht in 2016. From 2015-2016 AOT has grow 4.3%.

!4
Target and Strategies of AOT

AOT vision: AOT Operates the worlds smartest Airports

AOT mission: Operate and support airport business including providing the airport related

services by taking sustainable development into an account

AOT has three objectives which are Service area, financial area and the standard area

under the scope of AOT Strategy house to support AOT operation to conduct the business

sustainably which support 7 strategies includes Airport strategic positioning, Airport service

capacity, Aeronautical business, Non-aeronautical business, Intelligent services, Regional

Hub and Business development.

Strategy 1: Airport Strategic Positioning

Airport operation is considered fundamental as it is infrastructure to drive the country

to development and compete on the global stage, therefore AOT has to set the direction of

their operation to facilitate business sector effectively. To make AOTs airports develop

according to the plan, AOT have analyzed the basic information of each airport location to

pinpoint the advantage and opportunities including study user profiles of the customer in each

airport including sex, age, income, life pattern and trends to construct the strategy in each

airport along with the roadmap of competency development to compete in the major area.

The information of user profiles, location, business, and technology are used to shape airport

master plan and respond to the need of passengers and carrier. Suvarnabhumi airport will be

used as international gateway since it is the door to Thailand and Southeast Asia and its

!5
located in the middle of the country, the airport will service the passenger with the smile and

the warmth of Thai culture. Don Muang will be the fast and hassle-free airport. It will be the

centre of low-cost carrier in the region. The objective will be to facilitate and support the air

travel in Thailand to be easy, convenient and fast. For a regional airport, Phuket International

Airport will be the door to Andaman, Chiang Mai International Airport will be the door to

Lanna culture, Hat Yai International Airport will be the gateway to the Southernmost

Thailand linking 5 Southern provinces of Thailand includes Songkhla, Yala, Narathiwat,

Satun, and Pattani. The airport will be Muslim friendly providing Halal food since 70% of

Southern Thai are Muslim. For Mae Fah LuangChiang Rai International Airport it will be

the regional centre for aviation business support the fast growth of Mekong region and south

of China.

Strategy 2: Airport Service Capacity

Aviation industry grow continuously every year. AOT emphasis the enhancement of

the capacities to service the flight, passenger and cargo. There are 3 level of infrastructure

improvement includes, firstly the capacity management utilize the every available space to

have the highest best use, reduce the congestion in rush hours. Secondly, airport expansion,

expand the airport by build more runways, terminal and airside to reduce the congestion and

to support the busier air traffic status in the future. And lastly establish the airport master

plan, to lay down policy and set the duration of each project in both short-term and long term

project.

!6
Strategy 3: Aeronautical Business

The core business of AOT concerning the main mission of AOT which is Operate

and support airport business. AOT aims to develop the capacity of passenger flow, improve

transit and transfer process, safety & security check, fast and convenient ground handling

service to the airline and lastly space utilization. Moreover AOT want to develop the air

travel market in both domestic and international level which cover the transportation of

passenger and cargo by increase the frequency of flight and number of airline that will use the

AOTs 6 airport. The operation will be conducted along with the customer relation

management to secure the existing customer.

Strategy 4: Non-Aeronautical Business

The pattern of airport business in the present day apart from managing the airport in

the aeronautical field which is the main operation, AOT has emphasized the non-aeronautical

field as well. AOT aims to respond to the different needs and expectation of the customer

both passenger and airline. Non-aeronautical field has high productivity in terms of

generating income, 40% of AOT's income has been generated from this area. Along with

airport strategic positioning and user profiles, non-aeronautical business seeks to respond the

diverse needs of the customer in each airport. The data have been gathered in AOT so that

AOT can make the plan to expand the airport commercially. Ground service handling is

matters as much as air services. The convenience must be provided to the customer.

!7
Strategy 5: Intelligent Services

The communication technologies and innovation are needed for airport operation. The

total experience of the customer depends on the services the airport provides to them. In order

to create superior services experience the services have to cover every dimension both

aeronautical and non-aeronautical. AOT develop the technologies that are friendly to use and

accessible to every airport, moreover, the lifestyle of the customer are being studied so that

AOT can respond to every group of user. The organization culture is also being embedded to

the staff to keep the services quality at the top-notch level.

Strategy 6: Regional Hub

Thailand has a geopolitical advantage above the other country in the region. The

location of Thailand is situated in the middle of South East Asia which is easy to access and

connect to another part of Asia such as China, India and another country in Southeast Asia.

AOT aims to be the centre of air travel in the region and in the world that can support any

kind of travel whether business or travel. AOT wants to be transit and transfer hub, logistic

centre and MRO hub (Maintenance Repair and Overhaul hub) and the hub for aviation human

resource development.

Strategy 7: Business development

Operation leading to sustainability. AOT looking forward to the new opportunities of

business in the region particularly AEC. AOT seeks to improve and change the regulation

internally to compete at international level.

!8
Internal & External Environmental Analysis

For external environment analysis, we use PESTELI model to analyze them and for

internal environment, we use Theory of 7S as framework to analyze them which will be

described as the following

PESTELI

Politics

Even though government have strategic plan to support the role of AOT in becoming

the hub connecting the world and Thailand, but there are political tension occurred several

times and the most obvious consequence is the closure of Suvarnabhumi Airport and Don

Mueang Airport in 2008 which affected the decreasing number of customers during the

political unrest. It has been estimated that around 402 flight affected from the closure and

more than 53 million baht loss per day. These chart below are the statistic that show the

number of passengers and flight that have been significant decrease during the political

tension in 2008.

Source: https://airportthai.co.th/main/th/1115-air-transport-statistic

!9
Economics

With the economic growth in the region attracting customers like tourist and investor

from around the world. Especially the tourist which are more preferable class based on

money they spend in airport that more than business travel. As the graph show the Chinese,

despise some zero baht tour, produce more income for the country than other nations with

their rapidly economic growth.

Source: Tourism situation summary August 2016 by Department of Tourist

http://newdot2.samartmultimedia.com/home/listcontent/11/221/276

Social

With more intense competition between airlines in a term of affordability, the social

trend of people using airlines has changed significantly for a decade as can be seen from the

increasing number of low-cost airlines. AOT, therefore, has to convince these airlines to use

one of AOTs airports with can facilitate them most e.g. Don Mueang Airport can handle and

specialise airport usage for those air careers. Moreover, many social activities and events also

have effect to how people decide to travel for instance currently many famous football teams

from europe are hold a lot of matches in many big cities in China and it was expected that

!10
many people will go to watch the match. Such an event will inevitably affect the number of

traveller i.e. passenger.

Technology

Due to the advance of technology air control become manageable in which make

AOT capable to support more flight to land and the ticket reservation become much easier.

People who want to travel no longer have to go through travel agencies anymore, they could

purchase tickets and book the hotel or hostel by themselves. Application and website like

Traveloka, booking.com and Airbnb come to play major role or even grab or uber which all

of these have effect on the number of passenger that will come to use AOT airport.

Additionally, AOT has other cooperation with other important companies in accompanying

aeronautical business, notably Aeronautical Radio of Thailand Ltd. which has the latest

technology for flight management.

Environment

Natural disaster like flooding is sometime unavoidable. The 2011 flooding shut down

Don Muang Airport, caused two airlines which based there to stop their operation until the

flood went by. This incident clearly showed that environment is important and uncontrollable

in which it affects enormously. However, only a few like flooding will have effect to the

Airport since geographic location of Thailand are in favor that it will not face huge storm or

earthquake which will prevent the landing and departure of the planes and sometime do

damage to the airport itself.

!11
Legal

Ministry of Finance holds 70% of AOTs shares implying government hold final

decisions toward all AOTs activities. Moreover, the concerning of airport management

regarding to several laws hinder its airport development. For example, law on design and

usage of building, and law on environment. According to 15th environment committee

announcement the highest voice should not exceed 115 decibel and average voice per day

should not exceed 70 decibel, Moreover, the 17th environment committee also adjudicate the

noise at 10 decibel, or else by the authority from public health act and National

Environmental Quality Promotion and Preservation Act 1992 there will be considered as

criminal act and will be charge or imprison. There are a case that environment group sue

AOT for noise pollution but the court dismissed the case cause the noise didnt exceed 10

decibel.

Source: http://aot-th.listedcompany.com/shareholdings.html

!12
International

It cant be denied that international situation also have effects on the operation of

AOT and also its costumer. International epidemic and terrorism are among them that have

most obvious effect. International epidemic like Zika virus makes people less likely to travel

to the reportedly infected countries. Therefore, AOT is unavoidable to consider the

international situation as such terrorist attack that will greatly affect the number of

customers . Even during Ratchaprasong bombing in Thailand, many countries warned their

citizens to be caution and some even avoid to come to Thailand.

Source: Tourism situation summary August 2016 by department of tourist

http://newdot2.samartmultimedia.com/home/listcontent/11/221/276

!13
THEORY OF 7S

Structure

According to structural chart, Board of Directors are in charge to several

committees and the President (as the Board is the one who appoint them). The President

controls several hierarchical offices (as indicated in light blue colour) in which each of them

has several departments. Some committees have a relationship i.e. informal communication

with other departments inside their offices; that means one departments can be overviewed by

both the offices and committees. Additionally, the President is also in charge three main

airports and other Regional Airports in which each of them has separated departments. By

and large, there are too many key actors in the structure which are responsible in the

structure, and thus it makes the structure within AOT complicated i.e. the structure is not flat

at all.

Strategy

AOT have main strategy call Sustainable growth which these emphasis on 3 area;

Service area, financial area and the standard area. The Sustainable growth could be

classified into 7 sub-strategy.Briefly, First, Airport Strategic Positioning which are

practically to assign each airport with their geographic location such as international gateway

for Suvarnabhumi airport, Gateway to Lanna Heritage for Chiang Mai airport and Gateway to

Southern-most Thailand for Hat Yai airport. Second, Airport Service Capacity, which are to

develop capacity management, airport expansion and to create Airport Master plan, must

consider capacity for airside like runway, taxiway, passenger terminal and cargo terminal.

Thus, maintenance the infrastructure to be able to use to their max capacity. Third ,

Aeronautical business are to increase the efficiency of passenger flow, transit/transfer

!14
process, safety & security process and ground service handling for airline by concerning

space utilisation, convenience and speedy along with customer relation management to keep

old customers and find the new customers. Forth, Non-Aeronautical by using user profiles

matching with airport strategic positioning to devise a plan specifically for each airports and

by doing that it can improve the efficiency and services that will respond to the customer

need. Fifth, intelligent service is to develop system and facility to be easier to use or so call

user friendly. Sixth, Regional hub is AOT aiming to be regional and then world hub on

logistic and maintenance Repair and overhaul including becoming centre for develop aviation

personnel. Finally, business development is to expand the non-aeronautical business to other

area and also the aeronautical business to other countries such as airport management and

duty free shop by improve internal regulation in order to compete with international.

System

There are three main systems used in AOT: Management Information System (MIS),

System Application Programme (SAP), and Airport Operations Database (AOBD). MIS is

used at main headquarter and regional airports for operational and financial management, for

airport operation, and for a collection of flight information. SAP is used for human resource.

AOBD is used for flight information management. Additionally, all of these systems are

combined with the latest technology in which AOT seeks to use to improve the efficiency of

airport management, and also the capacity for each employee, either from AOT or outsourced

companies.

!15
Source : AOT annual report

!16
Style

The style is task-oriented which is could be found in many public sectors. Even

though it do get the jobs done but the relationship between operational staff and executives is

Top-Down. When the staff have new idea they cannot share or express their idea to the

position above them. Top-down relation obstruct the creativity of the staff. The idea can be

express only within the top level executive but not at the operational level staff which

experience the customer first-handed have no voice to express their opinion and ideas.

Moreover when the staff have any problems about the service with customers. They cannot

make any decision by him or herself. They have to wait for the decision from above so that it

create red tape in the working process.

Staff

There are 6,044 personnels within AOT and 13,372 from outsourced companies. For

within AOT, there is a definite job description and job specification as defined in 1975

Standardised Quality for Committee and Employee in State Enterprise Act (

.. 2518), 1992 Public

Company Limited Act ( .. 2535), and 1992 the

Securities and Exchange Act ( .. 2535).

Furthermore, a committee has an authority to recruit based on experience, knowledge, and

talent on each candidate. For outsourced employees, AOT holds seminars regarding the

general knowledges and operations in each airport to get use to and enhance their operation

when they perform their tasks in the airports, headquarters, and certain environment.

!17
Skill

AOT have 4 type of courses for employee such as Airport Management Training,

General Management Training, functional & operations training and soft skill training.

Moreover, AOT also invite expert to lecture from various institution like IOD and National

Anti-Corruption Commission on the program like Anti-corruption: the practical guide

(ACPG).

Source: http://airportthai.co.th/corporate/en/1922-internal-society

!18
 Beside normal training AOT also have training roadmap which will depend on the

number of year experience that will determine the level which will also indicate course and

scholarship that employee will be able to participate.

Source: http://airportthai.co.th/corporate/en/1922-internal-society

Shared values

AOT have 5 core values which are Service Minded, Safety & Security, Teamwork,

Innovation and Integrity. AOT spread their core values through holding seminar and

activities such as Role model seminar which will appoint the senior or management level

personnel to be a role model for junior and outstanding AOT core values change agent

awards to increase morale and attract employee to act accordance to the core values.

!19
SWOT Analysis

Strengths (Internal Environment)

S1 As we have long experience running these kind of business with professional experience
and expertise in airport business and management

S2 The location of airport are located in the strategic location covering many region in Thailand
and proclaim to be the gateway to others

S3 Existing mobile digital service for passenger, AOT application providing departure and arrival
flight also the airport facilities information.

S4 Expandable space, specially at Suvarnabhumi Airport to increase capacity management

S5 Suvarnabhumi have existing customers by having 111 airlines when compare to others in
the region

S6 Specialisation of airport usage for example Suvarnabhumi Airport for mostly Full services
carrier while Don Mueang Airport for Low Cost carrier

Weaknesses (Internal Environment)

W1 Capacity in which its inadequate and inecient in utilize land usage

W2 Broken deteriorate equipment like runway ,taxiway and broken screen which require regular
maintenance

W3 Transport to airport is unequally distribute which leads to the unequally development in the
transportation to the airport

W4 AOT has no flat structure in organisational management

W5 Not enough skilful stas, and new comers have to no experience in which they have to go
to training processes

Opportunities (External Environment)

O1 Government policy, especially twenty-year strategic plan aims to make Thailand link to other
country.

O2 Geopolitical location of Thailand situated in the middle of Southeast Asia

O3 Economic growth in this and surrounding region like China and India directly aect the
number of passenger to the airport

O4 Thailand is the popular tourism destination of many tourist around the world

O5 Air travel becomes accessible by the emergence of low-cost airlines as the wealth of people
increases and they have more choices that there will be more passengers and flight

O6 Government support the service innovation in its Thailand 4.0

Threats (External Environment)

T1 Competition with other 20 international existing and constructing airports, including Vietnam

T2 Global terrorism and epidemic which aect the level of tourism and, subsequently, the number
of passengers using airports

T3 Political Instability in Thailand makes it unsafe for tourists, and gradually reduces the number
of visitor using airports

!20
IFE and EFE Analysis

Key Internal Factor Weight Rating Weight Score

Strengths (3-4)

As we have long experience running these kind of business 0.05 3 0.15

with professional experience and expertise in airport business
and management

The location of airport are located in the strategic location 0.05 4 0.2
covering many region in Thailand and proclaim to be the
gateway to others

Existing mobile digital service for passenger, AOT application 0.1 3 0.3
providing departure and arrival flight also the airport facilities
information.

Expandable space, specially at Suvarnabhumi Airport to 0.125 4 0.5

increase capacity management

Suvarnabhumi have existing customers by having 111 airlines 0.05 3 0.15

when compare to others in the region

Specialisation of airport usage for example Suvarnabhumi 0.15 4 0.6

Airport for mostly Full services carrier while Don Mueang
Airport for Low Cost carrier

Weaknesses (1-2)

Capacity in which its inadequate and inecient in utilize land 0.15 2 3

usage

Broken deteriorate equipment like runway ,taxiway and broken 0.1 1 0.1
screen which require regular maintenance

Transport to airport is unequally distribute which leads to the 0.075 2 0.15

unequally development in the transportation to the airport

AOT has no flat structure in organisational management 0.05 1 0.05

Not enough skilful stas, and new comers have to no 0.1 1 0.1
experience in which they have to go to training processes

Total 1 4 2.6

!21
Key Internal Factor Weight Rating Weight Score

Opportunities

Government policy, especially twenty-year strategic plan aims 0.05 4 0.2

to make Thailand link to other country.

Geopolitical location of Thailand situated in the middle of 0.1 3 0.3

Southeast Asia

Economic growth in this and surrounding region like China and 0.2 4 0.8
India directly aect the number of passenger to the airport

Thailand is the popular tourism destination of many tourist 0.15 4 0.8

around the world

Air travel becomes accessible from the emergence of low-cost 0.05 2 0.1
airlines as the wealth of people increase and they have more
choices which implies that there will be more passengers and
flight

Government support the service innovation in its Thailand 4.0 0.05 3 0.15

Threats

Competition with other 20 international existing and 0.2 3 0.6

constructing airports, including Vietnam

Global terrorism and epidemic which aect the level of tourism 0.05 2 0.1
and, subsequently, the number of passengers using airports

Political Instability in Thailand makes it unsafe for tourists, and 0.15 4 0.6
gradually reduces the number of visitor using airports

Total 1 3.65

!22
AOTs Vision Dilemma

After reviewing AOT vision AOT Operates the worlds smartest Airports we found

that out of their strategy house which includes Airport strategic positioning, Airport service

capacity, Aeronautical business, Non-aeronautical business, Intelligent services, Regional

Hub and Business development. There are only one strategy (Intelligence service) that are

related to Smart airport. The rest of the strategies is to enhance to capabilities of the airport

in both aeronautical-related and commercial non-aeronautical business. From their

environment the location of the airport, the existing customer which is linking the airport to

many region, the economic growth in the region and their planned strategy which has the

regional hub as the strategy in strategic house. we found that the destination that they are

going is to be the regional hub of Southeast Asia. Their strategy is not correlated with the

vision AOT Operates the worlds smartest Airports but it do correspond with the Thai

version of vision . in which it

could be translated directly as AOT Operates the worlds class airport. So we presumed

that when they planned their strategy they looking at the Thai version vision not the english

one which is to be smartest airport. But their on-going strategy was covering many area in

order to make Thailand connect to the world according to Thailand 20 years strategic plan.

Even though they did not correspond to their English version of vision, at least they

correspond to national strategy and their Thai version strategy. We presumed that the reason

why they translated the vision from Thai to English so differently is because they want to

archive both, to be world-class airport and also the smart airport. So we decided to change the

vision from AOT Operates the worlds smartest Airports to AOT Operates the world-class

smart airport"

!23
 World-class airport is measured differently by the passengers and the airlines.

Passengers want the best performance of airport facilities, services, and retails. At the same

time, there must be a research or survey regarding what passengers or customers need inside

the airport in order to improve their satisfaction. In the other hand, airlines seek for airports

that have good characteristics i.e. airlines have certain criteria to choose the airports which,

for examples, have high number of connecting airlines, offer high quality of marketing that

make both airports and airlines infamous, and can provide special areas for airlines for

specific usages like lounges etc. By and large, by being a world-class airport, it should see

itself to be more customer-focussed, spend more time getting to know an airlines and their

passengers. Thus, everyone, both airlines and passengers, or other people, can easily access

the airport.

The definition of Smart Airport is the concept that centre around passenger services

by regarding the safety and security element by using technology. The main point are the

interconnectedness within the system includes infrastructure, checkpoint, passenger and

ground handling services, information point and internal communication using technology.

AOT has the platform of mobile application which gives the passenger the real-time

departure and arrival flight also provide the airport information. The goal of the smart airport

is to make systems and process digitally aware, interconnected, and simple to access by

everybody. The main idea is to integrated and unified digital platform.

In order to make AOT operate the world class smart airport operators we have done

TOWS analysis to shape our additional strategy for the AOT to reach its precise goal.

!24
TOWS Analysis and Strategic Issues

As we have calculated weight score we found that the score is above average in both

matrix means that we should use SO (Strength and opportunity) strategy i.e. using strength to

take advantage of opportunities.

STRATEGIC ISSUES

Strategic issue 1: To enhance performance of the airport and become smart regional

hub (S1+S2+S3+S4+S5+S6+O1+O2+O3+O4+O5)

Strategies

1. Increase capacity of the airport

2. Increase customers satisfaction and security of the airport

3. More easier and more accessible services provided to all customers

Strategic Goals

To have the airport that can serve a large number of passengers and flights

To create more customers satisfaction and their safety

Customer be able to access the information when they need it in realtime

Projects

Smart Airport

We found out that the way to be World class airport is to be customer-centric which in

this globalisation, the technology plays important role. Smart airport has the concept of

using technology as the instrument to satisfy customer and they have the same principle

with world class airport which is customer centric. Which means that in the age of

globalisation where technology are going to be part of our life. Smart airport is the path to

be world class airport. The basic of smart airport is connectivity, here we want to

!25
introduce the IoT or Internet of Things which is the development that allow the

everyday data to have network connectivity through the internet. The interconnection

starts from small smart object that customer can bring with them for example smartphone

and wearables items like smartwatch. The smart airport will make the system and process

aware digitally.

Passenger doesnt have to be in the airport to get the information about the flight and

the airport but they can be anywhere and check them on their phone. Smart mobile app

is the key to all system in smart airport. Luckily AOT have the AOT Application

available to download online both Android and iOS device. The application can check

the departure and arrival flight and provide you the airport information. To enhance the

performance the improvement should be made. The stability of application should be

improve. In addition to the existing function of the app which is inadequate to be smart

airport there should additional function includes Boarding alert when the gate is

open or about to close there should be a notification notify on the phone that passenger

should go to the gate. In case there are flight delay, the path to the restaurant and shops

nearby the gate will be available on the phone also the special offer to attract the

passenger. When the plane arrive the passenger doesnt have to waste time waiting for

baggage instead they will be guiding to the duty free shop until the baggage arrive and

the notification on their phone will alert them. Payment in the airport could be done

through the app. The buying patterns will be influencing through the social network and

media in the airport, this will generate the non-aeronautical revenue to the airport by

stimulating the customer to shop in the retails and shop within the terminal while

waiting. Also their will be the terminal traffic report which will inform passenger, how

many people are in the check-in and how long that they have to wait in the queue and

!26
 recommendation of the fastest way to the gate. Typically the online check-in can be

done remotely through the particular airline application but the new version of AOTs

application will be the centre for check-in of every airlines, so the passenger doesnt

have download many application. The parking reservation could done through the app

as well. Also the application has the in-app booking service for both the airport

limousine service and hotel.

For security, Digital camera and sensor will be the heart of the control. It will monitored

the passenger at check-in, security checkpoint, even the parking area. Track and trace

technologies will be used to track the missing luggage. Tracking technology will also be

use to track the AOT asset that service in the airport includes trolley, car, bus and bikey

in the terminal. For the security checkpoint the millimetre waves scanner will be install

in all of the AOTs airport. Biometric technology (face recognition and eye scanning)

will be use to enhance the security.

Self-services check-in technology will be provided to all of AOTs airport.

As mentioned the data is significant in order to become smart airport. The data will not

only provided to the passenger but also to the airport so airport can keep up with their

performance and correctly respond the need of customer. Smartphone will generate the

growth in the data collection. New artificial intelligence will have the knowledge

management tools to predict analytically the emergence trends of the customer using

the behavioural data.

Smart airport cannot be done only through the innovation and technology since the

airline are the main customer of the airport. The airport have to team up with airlines to

collaborate to create efficient end-to-end journey for the passenger.

!27
 Aerotropolis (Suvarnabhumi Mahanakorn)

Employed the smart airport function to the new terminal of Suvarnabhumi Airport.

The South Terminal (Bang Na - Trat Rd.) at Suvarnabhumi Airport i.e. Changi model

- more facilities inside the new terminal e.g. swimming pool, small zoo, park, theatre,

large playground, and relax centre in which all passengers regardless of wealth status can

freely access to those facilities that can increase customers satisfaction.

In other word, not only those passengers can use these, but also ordinary citizens who

also check out these things - creating a new public arena of relaxing like in department

store to do activities. Furthermore, building South Terminal can decrease passenger

density at the original terminal as there will be more clearer specification of airlines to

use one of those terminals e.g. South Terminal is for other airlines alliances like

SkyTeam and oneworld while North Terminal is reserved for Thai Airways

International and other Star Alliance airlines. As the airport become the city, the

passenger will never have to leave the airport. It prevent illegal immigrant to sneak out

off the airport. Since there are no excuse of leaving the airport.

Change security checking apparatus and equipment to be more advance in checking

banned materials in all airports because the current technology used inside airports cant

detect certain elements and substances which can be used for terrorism. Additionally,

although security guards are trained well from both outsource companies and AOT, they

are needed to have more job awareness to increase efficiency at security checkpoints by

develop more up-to-date rules and regulations.

!28
Measurements

The increasing percentage of passenger 40% of original capacity at original terminal at

Suvarnabhumi Airport

Customer evaluation system, integrated airport analytics across the system to categorise

the data in order to analyse performance.

Number of download from application and review.

Sightseeing by AOT officer at self-immigration

Strategic issue 2: To maintain or enhance financial status and quality of AOT to prepare

for saving budgets for further airport investments (S1+S4+O3+O5)

Strategies

1. To continuously downsizing the number of employees, especially the outsourced

employees

2. To liberalise the source of commercial income from other retail companies

Strategic Goals

To reduce the redundant and insignificant number of employees in one performing task.

Especially with the outsourced employees, to decrease the dependence on them

To led more competition among retail companies in getting, leasing one space in the

Terminal, and asking shops they are interesting at to open, apart from having AOT own

that space and offer shops to open

!29
Projects

As mentioned on the first strategic issue regarding on the introduction of newer

technologies used in security checkpoint, the technologies nowadays and in the future will

be very advanced and efficient in the way that they can operate in a longer time without

any replacement in a long run. Therefore, it is very good investment at once. On the other

hand, when there are sophisticated technologies, and with the increasing of wage, and

variation of performing quality, there will be lesser or even no need of outsourced

employees e.g. security guards to be recruited at each airport. More self-immigration

checkpoints at the airports for easier, faster, and cost-saving processes.

Open bidding for other retail companies to lease one of the area. For example, if the

construction of South Terminal is finished, AOT has an authority to open bidding to

interest companies such as King Power, The Mall, or Central. The company which is

willing to pay more in leasing one space in the Terminal has a right to perform its business

in the Terminal.

Measurements

Customer evaluation system, integrated airport analytics across the system to categorise

the data in order to analyse performance.

The number of companies interesting in joining the bidding processes as shown in a

formal document or in press

Sightseeing by AOT officer at self-immigration

!30
Balance Scorecard

!31
 Bibliography

Dr. Amir Fattah, Smart Airports: Transforming Passenger Experience To Thrive in the New

Economy, July 2009, Cisco Internet Business Solutions Group (IBSG).

A Research Program , How Airports Can Achieve World Class Status As Viewed by

Passengers AND Airlines, CAP Strategic Research 2011

(). 2559.

,(), 2558

!32