Airlines are urging the new government to relieve the huge burden from exaggerated operational costs, which is 15-20% higher than in other countries, attributed largely to taxes on fuel, revenue and importing aircraft, saying this issue should be fixed within the first 100 days.
The Airlines Association of Thailand (AAT) yesterday asked Pita Limjaroenrat, leader of the Move Forward Party and first in line to attempt to garner the votes for prime minister, to take care of three issues: removing obstacles for aircraft imports and integrating cooperation between airlines and airports; setting an appropriate level of excise tax on jet fuel and enhancing airline competitiveness by increasing the rights to fly to target countries; and reducing visa fees for travellers.
Mr Pita said the party acknowledged industry concerns from the Tourism Council of Thailand earlier and would plan future discussions with AAT to formulate a plan to urgently fix these problems.
He said Thailand lost opportunities because of its inability to become an aviation hub, attributed to regulatory issues or public administration.
Singapore can draw many flights and has a tourism promotion apparatus in place to attract Mice (meetings, incentives, conventions and exhibitions) travellers, said Mr Pita.
“If we benchmark the operational cost of airlines in Thailand with neighbouring countries, it remains 15-20% higher in Thailand,” he said.
The higher operations cost results in more expensive tickets for consumers.
Mr Pita said state authorities may lose income from offering reduced service fees to airlines, but higher tax revenue from tourist spending might offset or exceed those reductions, having a greater impact on local communities.
He said the country has insufficient maintenance, repair and overhaul (MRO) facilities, with only two in Thailand, causing airlines to seek this service overseas.
Mr Pita said the new government plans to urgently address this issue, as the country has lost opportunities to earn income from being an MRO hub for other airlines.
Tassapon Bijleveld, vice-president of AAT and executive chairman of Asia Aviation, the holding company of Thai AirAsia, said the company hopes the new government can sort out ongoing problems without delay.
He said increasing air service agreements should be a priority because it can help draw more passengers from key markets such as India, China and South Korea.
Nok Air chief executive Wutthiphum Jurangkool said the new government should prioritise its requests within the first 100 days of its administration.
He said the process to import new aircrafts must be accelerated, as the complicated procedures prevent airlines from expanding in accordance with growing demand.
