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Annual Report 2019 ANNUAL REPORT 2019 INSPIRING THE WORLD WITH SMARTEST AIRPORTS CONTENTS 13 134 Message from the Chairman Connected Transactions 14 136 Report of the Audit Committee Financial Highlight 17 139 Report of the Nomination Committee Management discussion and analysis of financial statements 18 147 Report of the Remuneration Committee Air Traffic Statistics 19 160 Report of the Risk Management Committee Airport Development Projects 20 167 Report of the Corporate Governance Committee AOT Human Resource Development 22 173 AOT Board of Directors Pre-Shipment Inspection Center 25 174 AOT Executives Establishment of AOT Ground Aviation Services Company Limited 28 AOT Organization Chart 176 Safety, Occupational Health and 31 Working Environment Operations History Vision, Mission, Core Values 182 32 Aviation and Airport Safety and Security Standards AOT’s Goals and Sustainable Development 190 36 Environmental Operations Business Characters 198 39 Corporate Social Responsibility Risk Management 204 41 Community Relations Activities General Information 211 43 Awards and Accolades Securities and Shareholders 214 45 Financial Statements Management Structure INSPIRING THE WORLD WITH SMARTEST AIRPORTS 6 ANNUAL REPORT 2019 Airports of Inspiration, 40 years of Thai airports with universal standards Potentials of great pride: Thai airports at universal level Moving forward to become Asia’s aviation hub with international capabilities. to world-leading airports, we have 136 airlines in 6 airports with about 9 hundred thousand and 142 million passengers. With advantages that Thailand is one of the most popular destinations among regional and global tourists with areas to be expanded for further business development in relation with aviation industry, we have unrivalled experience and expertise in managing airports to meet universal standards. AIRPORTS OF THAILAND PLC. 7 4 decades of Thai Airports Don Mueang Airport Accepting transfer of Chiang was improved to be Mai Airport, Hat Yai Airport 8 March: the first plane Bangkok Airport and Phuket Airport Don Mueang landed as auspicious 1 July, Airports of Area was selected moment at Thailand Authority (AOT) as an airport Don Mueang Airport was established 1911 1914 1955 1979 1988 8 ANNUAL REPORT 2019 Suvarnabhumi Airport was inaugurated as the Airports of Thailand national main airport Being selected Public Company Limited as a member of Suvarnabhumi Airport AOT Airports (AOT) was registered in Dow Jones has been ranked by Application is launched th Stock Exchange of Thailand Sustainability (DJSI) Skytrax as the 36 to facilitate airport users best airport in the world AOT Airports 2002 2006 2015 2016 2019 AIRPORTS OF THAILAND PLC. 9 Modern Development connecting Thailand to the world AOT administrates 6 airports, facilitates travelling in and out of the country and international transport and develop its operations unceasingly. That is, Suvarnabhumi Airport is the main airport of the nation with modern facilities along with Thainess while 100-year Don Mueang International Airport has been developed to be a service point for regional low-cost airlines and Phuket International Airport has state-of-the-art passenger terminal to enhance potentials as the gateway to Andaman in support of foreign tourists to embrace the magnificence of the world-class seashore city. 10 ANNUAL REPORT 2019 CNX CEI INSPIRING THE WORLD Mae Fah Luang – Chiang Rai WITH International Airport Number of flights to be supported 12 flights/hour SMARTEST Chiang Mai International Airport Number of passengers to be supported 3 million Number of flights to be supported 24 flights/hour passengers/year AIRPORTS Number of passengers to be supported 8 million passengers/year BKK DMK Suvarnabhumi Airport Number of flights to be supported 68 flights/hour Don Mueang International Airport Number of passengers to be supported 45 million Number of flights to be supported 48 flights/hour passengers/year Number of passengers to be supported 30 million passengers/year HKT HDY Phuket International Airport Number of flights to be supported 20 flights/hour Number of passengers to be supported 12.5 million passengers/year Hat Yai International Airport Number of flights to be supported 12 flights/hour Number of passengers to be supported 2.6 million passengers/year AIRPORTS OF THAILAND PLC. 11 AOT Digital Platform has been considered a major step toward the transformation of AOT’s business model and structure to elevate our services to respond to the changing behaviors of users and to create business immunity. 12 ANNUAL REPORT 2019 Message from the Chairman For the past 4 decades, Airports of Thailand Public Company Accreditation, which has reflected our energy efficient Limited (AOT) has been proudly operating as a state enterprise management to reduce carbon dioxide emissions and our which has played an important role in the public and operations in accordance with our Green Airport Policy. commercial sectors to support and drive the country’s As a result, Suvarnabhumi Airport, Don Mueang International economic development while delivering value to airport Airport, Chiang Mai International Airport, Hat Yai users and responding to the expectations of shareholders International Airport, and Mae Fah Luang - Chiang Rai and investors by giving importance to governance and International Airport have been certified with Airport Carbon organizational development under the principles of good Accreditation at Level 3: Optimization while Phuket corporate governance to promote organizational growth International Airport is requesting for the approval of the and sustainability along the path of airport business. 1st level: Mapping. These recognitions have reflected our intention towards sustainable development in all aspects. The air transportation industry has been experiencing changes and challenges during the past year. AOT has On the auspicious occasion of the Coronation and the been accelerating our capacity expansion to meet the Celebration of the Official Royal Title of Phrabat Somdet Phra growing air traffic demand at airports within our area of Paramenthra Ramathibodhi Srisindra Maha Vajiralongkorn responsibility while upgrading our organization to a digital Phra Vajira Klao Chao Yu Hua, AOT is pleased to join with operating system by using digital technology and 11 leading organizations to organize the “Happy and Healthy innovations based on AOT Digital Platform to enhance the Run and Bike for the King” activity - a bike and run event to overall management for more efficiency. In other words, celebrate the royal grace of His Majesty the King. More than airport users can access to airport services and data on 15,000 people participated in this historic event at the a real time basis to plan their activities and effectively Happy and Healthy Bike Lane, one of the world’s best bike manage their time. AOT also promotes e-commerce lanes located in the area of Suvarnabhumi Airport. A voluntary activities and has developed a loyalty program via the activity was also conducted to improve the landscape of platform, supported by business partners for various the airport to be clean and tidy during the coronation services, such as Duty Free, car rental services, airport ceremony to express our loyalty and gratitude for lounge services, hotel reservation, etc. Thus, AOT Digital His Majesty’s boundless and gracious kindness. Platform has been considered a major step toward the transformation of AOT’s business model and structure to On behalf of the AOT Board of Directors, I would like to elevate our services to respond to the changing behaviors pledge my sincere gratitude to all shareholders, business of users and to create business immunity amid challenges partners, and stakeholders for their continued support of from the tourism industry and the air transportation industry our operations. I would also like to thank the AOT executives to drive continuous improvement and to provide world-class and staff for their commitment and efforts towards airport services in a sustainable manner. our organization as they have raised the level of airport operations beyond standards, provided services with tender AOT is determined to be a world-class airport operator. loving care supported with advanced technology, created To guarantee our quality, we have been awarded by added value, and taken responsibilities towards society domestic and international institutions, such as the 2019 under good corporate governance in order to move forward Thailand’s Top Corporate Brand Value for 5th consecutive to the 41st year of AOT’s sustainable operations. year – as a corporation whose brand value ranked highest in the category of transportation and logistics, and the honorable 2019 ASEAN’s Top Corporate Brand Value, which represented AOT’s contributions to Thailand’s society and economy. At the same time, AOT conducts business by taking environment into consideration for steady (Mr.Prasong Poontaneat) and sustainable growth endorsed by the Airport Carbon Chairman AIRPORTS OF THAILAND PLC. 13 Report of the Audit Committee Dear shareholders, The Airports of Thailand Public Company Limited (AOT) assigned by the Board of Directors by adhering to the Audit Committee consisted of 3 experienced independent Audit Committee Charter in compliance with Regulations directors with expertise. of the Ministry of Finance regarding Audit Committee The List of the Audit Committee from October to and Internal Audit of State Enterprises B.E. 2555 (2012), December 2018 the Audit Committee Handbook for State Enterprises,
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