PM’s plan to tackle soaring cost of air ticket prices in Thailand

Prime Minister Prayut Chan-o-cha has taken charge to address the soaring prices of air tickets with a comprehensive five-point plan. The plan comes after Deputy Transport Minister Atirat Ratanasate informed the ministry of the measures taken and those in the pipeline to address the substantial hikes due to the surge in demand after the Covid-19 pandemic and the recent decision by the Big Oil Majors to cut oil production.

The Civil Aviation Authority of Thailand (CAAT) has developed a five-point plan to deal with the issue that has frustrated passengers, affecting the tourism industry, reported Bangkok Post. The 69 year old PM instructed the Transport Ministry to proceed with the plan to address the soaring prices of air tickets and urged the CAAT to keep tabs on domestic airfares.

The measures proposed by the CAAT include increasing ground handling capacity, relaxing rules for airlines, and considering a subsidy programme. The limited ground-handling capacity causes airlines to limit flights, so more ground-handling operators should be allowed, said officials. Positive incentives should be introduced to encourage airlines to return their flight slots early if they cannot operate the flights so that the slots can be reallocated.

The CAAT also suggests that airlines should be given more flexibility regarding maintenance work in other countries, enabling them to procure more aircraft to solve the seat capacity problem. Laws should be improved to promote investment in maintenance centres to serve the country’s growing airline business.

In the short term, Thai-registered airlines could be serviced at the facility run by Thai Airways International, which would help bring down the cost of air ticket prices. Officials have also proposed a subsidy policy for airlines that operate flights to less popular destinations. The measure would drive demand and make these airports more attractive to investors.

Air tickets on specific routes are expensive due to low market demand or the service being provided by a single operator. However, should the PM successfully implement these measures, officials believe that demand will increase, and prices will eventually come down.