Connect with us

Tourism

Drop your excise tax on jet fuel, or we’ll pull out – Airlines

Published

 on 

The Thai Excise Department is proposing local airlines increase the number of flights to the Kingdom’s second-tier provincial airports in return for a reduction in the excise tax on jet fuel. The Department’s aim is to increase tourism into Thailand’s lesser-known tourist areas and attractions.

Nok Air, Bangkok Airways, Thai AirAsia, Thai Smile Airways, Thai Airways International, Thai VietJet Air and Thai Lion Air have all submitted requests to cut the excise tax on jet fuel to avoid downsizing, cutting services on low-performing routes, or shutting down operations.

Aviation fuel makes up 30-35% of an airlines’ costs, and the excise department charges on jet fuel tax of 4.726 baht per litre. The airlines say that the tax on jet fuel is a huge burden since it went up to 4.726 baht per litre from just 0.20 baht per litre just two years ago.

But Patchara Anuntasilpa, the director-general of the excise department said that if the low-cost and full-service airlines want the Department to cut the jet fuel taxes, they should “offer proposals that benefit the public”, including more frequent flights to second-tier provinces.

The Bangkok Post reports that meetings are now scheduled in two weeks where the key players will be joined by the TAT to discuss options. The TAT acknowledge the co-operation of airlines is vital to establishing new tourism hubs.

Meanwhile, airlines operating in Thailand say they are being battered by a weak economy and the baht’s strength, which is reducing international tourist arrivals, while the intense competition prohibits them from raising fares.

Thai AirAsia says they’ve had to reduce flights by 15% over the last four months, cutting frequency of flights to Chiang Mai, Phuket, Krabi and Khon Kaen to contain the high operating costs.

Meanwhile, the senior vice-president of Bangkok Airways, Anawat Leelawatwatana, says Thailand airlines’ fares are falling as carriers compete locally and internationally.

“Government support is required if airlines are expected to take part in stimulating tourism in particular provinces.”

“Promoting travel in second-tier provinces is crucial for Thailand’s tourism. Many foreign tourists are drifting towards other countries in the region because of a dearth of new tourism spots.”

SOURCE: Bangkok Post

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

If you have story ideas, a restaurant to review, an event to cover or an issue to discuss, contact The Thaiger editorial staff.

Follow Thaiger by email:

South46 mins ago

UPDATE: BRN insurgents admits to Deep South bombings

Crime59 mins ago

Alleged kidnapper arrested, girl reunited with parents after months

Cannabis1 hour ago

New govt bill on cannabis hopes to clear blurred lines in Thailand

Crime1 hour ago

Famous Thai actress “Pinky” jailed for Forex-3D scam, denied bail

Chon Buri2 hours ago

Father tragically drowns while fishing in Chon Buri pond

Crime2 hours ago

South African’s life sentence reduced to 33 years for drug trafficking in Thailand

Join the conversation on the Thaiger Talk forums today!
Thailand2 hours ago

PM’s office is one of Thailand’s top advertising spenders

What you get for $X3 hours ago

What $500,000 buys you for a condo in Phuket, Pattaya, Koh Samui, and Bangkok

Thailand3 hours ago

Health dept’s reply to rising food costs: ‘let them eat curry & rice’

Politics3 hours ago

Sri Lanka’s exiled president to head home after Thailand stay

Thailand3 hours ago

New Bill Restrictions for Cannabis use in Thailand | GMT

Thailand3 hours ago

Two Indians stopped for taking restricted goods to Bangkok

Thailand19 hours ago

Thailand News Today | Thais more relaxed about Covid-19

Bangkok19 hours ago

‘Win’ motorbike taxi drivers protest against GrabBike in Bangkok, Thailand

World19 hours ago

China not cod-ing about its zero Covid policy as it tests fish

Thailand11 months ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand1 year ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism1 year ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket1 year ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism1 year ago

Phuket Thai food treats you need to try | VIDEO

Thailand1 year ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism1 year ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending