PM holds talks with AOT, airline association on increasing flights, lowering airfares

MONDAY, AUGUST 28, 2023

Prime Minister Srettha Thavisin has scheduled a meeting on Monday (August 28) afternoon at the Pheu Thai Party's headquarters in Bangkok with Airports of Thailand Plc (AOT) and the Thai Airline Association to address issues related to inadequate flights and high airfares.

They will also discuss the challenges in accommodating tourists during the upcoming high-season period.

AOT Plc had previously presented a plan on resolving airport congestion, while major airlines are requesting tax reduction on aviation fuel.

Efforts are expected to be made to prepare the private sector for the tourism high season in the fourth quarter, beginning with the Chinese National Day in early October. Airlines are also being told to gear up to be ready and ensure both stability and safety.

AOT chief executive officer Kirati Kitmanawat mentioned that Srettha had noted problems concerning insufficient flights and high airfares. The PM has called a meeting with AOT and airline executives through the Thai Airline Association to address these issues.

AOT has been told by Srettha to expedite management measures to alleviate congestion at Suvarnabhumi and Don Mueang airports. The issue of high air ticket fares is expected to be resolved by November to accommodate tourists during the high season. AOT will also present plans to the PM addressing congestion at airports.

The capacity of the passenger terminal at Phuket Airport would be expanded from the current 12 million people per year to 20 million people per year, with a budget of 10 billion baht, expected to be completed by 2025. During the redevelopment of Phuket Airport, a study will be conducted to build a new airport in Phang Nga province, capable of accommodating 20 million passengers, with an estimated investment of 80 billion baht to help relieve the load on Phuket Airport.

The major Thai airlines represented by the Thai Airline Association will focus their discussions on important policies related to strengthening and enhancing the airline industry.

This includes adjusting appropriate rates for aviation excise taxes, accelerating industry-related processes, and increasing competitiveness, such as negotiating additional flight rights to facilitate travel by the target group of Chinese tourists and reducing visa fees to stimulate tourism.

Air travel is a crucial catalyst for the overall tourism-driven economy of the country, connecting revenue generation to various related businesses. With the ongoing recovery phase being critical, airlines being ready for the surge and continuous government support are necessary, experts believe.