The prolonged COVID-19 situations have a tremendous impact on the aviation industry, affecting several businesses related to the aviation industry. Some people may not aware that another significant business that have been heavily affected is aviation refueling. M.L. Nathasit Diskul, President of Bangkok Aviation Fuel Services (BAFS), a leading aircraft refueling service provider with nearly 40 years of experience and expertise, revealed that the crisis has caused the global airline industry to drop to its worst pace in century. According to the forecast made by the International Air Transport Association (IATA), businesses related to the aviation industry is expected to surpass its pre-COVID level in 2024 with an approximate number of 4 billion passengers per year worldwide and the number will gradually double to 8 billion passengers per year by 2040. The figures also indicate that the aviation ground service equipment would need to increase to meet the growing demand. This is in line with BAFS' commitment to sustainability, through the development and adoption of advanced technology which will enhance the efficiency of aviation fuel services in line with global standards.
"BAFS Group's main revenue comes from aviation refueling. We have a total fleet of around 80 hydrant dispensers and refuellers, considered one of the largest numbers among ASEAN countries, stationed at Don Mueang International Airport and Suvarnabhumi International Airport. We plan to increase the proportion of our revenue from the company's core business to 50 percent and the remainder of the revenue, which comes mainly from our subsidiaries in the utilities and renewable energy businesses. For utilities business, we have the largest fuel pipeline network in ASEAN. The delivery capacity is approximately 9 billion liters per year. Within the next five years, our renewable energy business is expected to expand and they are likely to become our significant source of revenue in the future," said M.L. Nathasit.
The above-mentioned explanation has led to the establishment of a subsidiary named BAFS Intech Company Limited in 2018, with BAFS and Uniwave Company Limited holding 90 percent and 10 percent of the total shares, respectively. This brought together the strengths of BAFS and Uniwave to create favorable synergy. Mr. Aniruth Boonyatirana, Managing Director of BAFS Intech Company Limited, said BAFS Intech's core business involves the assembly of an electrically powered aviation refueling vehicle, also known as EV hydrant dispenser, and refueller, together with maintenance services. In addition to manufacturing aviation refueling vehicles to be delivered to BAFS, the company also supplies similar products to other Thai customers as well as customers in foreign countries such as the Lao PDR and Myanmar. BAFS Intech has recently joined forces with Spain's ITURRI, the world's leading manufacturer of aircraft refueling vehicles, to accelerate the production of the Battery Electric Vehicle (BEV) in the hydrant dispenser. To promote environmentally friendly and 100-percent electrically powered innovations, the vehicles can ensure net zero carbon dioxide emissions, while being able to reach a maximum running distance of 170 kilometers and refuel an average of eight fights on a single full charge. The strategic collaboration between the two companies is expected to develop a new range of innovative products designed appropriately and exclusively for users in the Asia-Pacific region.
The collaboration also unveils ITURRI's intention to keep developing new solutions for zero-emission vehicles, particularly to comply with the new rules, regulations, and regulations established by the International Civil Aviation Organization (ICAO) for the reduction of carbon dioxide, carbon footprint, and noise in the airport areas, both domestically and internationally. Mr. Amadeo Douton Rodriguez, Managing Director of ITURRI and Mr. Luis Ramon Parias Vazquez, Aviation Manager of ITURRI, reaffirmed the collaboration with BAFS Intech in Thailand is regarded as the best business partnership in the ASEAN market for the aviation and refueling industries. The agreements will mutually be developed with the support of ITURRI's research and development department, with the piloting of power supplies, electric refueling machines, and smart solutions for hydrogen-powered vehicles, thanks to BAFS Group's long-standing experience and expertise in aviation refueling and its accurate and successful business management strategies. ITURRI is also setting its sight to drive its export volume to 70 percent of overseas production by 2025, as part of the attempt to achieve the targeted total turnover of 500 million euros, which will double the current value.
M.L. Nathasit Diskul added "The impact of the COVID-19 pandemic makes people in various businesses realize that no one can stand alone. BAFS has hence underscored the importance of business collaboration with various companies in Thailand and in several other countries. The plan to manufacture the BEV has been previously considered as we have been fully committed to operating our business based on the principle of social and environmental sustainability. One of BAFS's proudest achievements is having received the certification for being the carbon neutral company since 2019. As a leading aviation refueling service provider, we always ask ourselves what can we do more for the environment and move toward true sustainability. Consequently, Net Zero has become our ultimate goal to be achieved before 2050."
COVID-19 is considered an important lesson for humanity and everyone must learn to overcome all difficulties. BAFS realizes how important it is to reinvent itself to get over the challenges in today's business and thrive through this crisis.