Thailand caps airfares to curb Songkran holiday price hikes
The Civil Aviation Authority of Thailand (CAAT) announced yesterday, February 3, its plans to address the issue of high airfares during peak travel periods, especially around the Songkran holiday.
According to CAAT chief Suttipong Kongpool, the initiative is in response to a directive from Deputy Prime Minister and Transport Minister Suriya Jungrungreangkit, aimed at regulating airfares for the benefit of travellers.
CAAT introduced several measures to maintain reasonable airfare levels. A price ceiling has been established based on flight distance, setting a maximum of 9.40 baht (US$0.3) per kilometre for low-cost airlines and 13 baht (US$0.4) per kilometre for full-service airlines. This regulation is applicable only to direct bookings made with airlines.
The pricing model adheres to standards set by the International Civil Aviation Organisation. Of the total fare, around 25% to 33% is allocated for fuel, 20% to 31% for flight operations, and 8% to 16% for maintenance.
The objective of the price cap is to prevent airlines from significantly increasing ticket prices beyond reasonable profit margins.
To further address the issue of airfares, CAAT has proposed three main strategies.
The first strategy focuses on increasing supply. CAAT is collaborating with airlines, airports, and air traffic service providers to enhance flight availability during peak seasons by adding more flights, expanding airline operations, and improving aircraft maintenance facilities.
The second strategy involves conducting regulatory reviews. CAAT is collecting data to reassess fare regulations, ensuring a balanced pricing structure that benefits both airlines and passengers.
The final strategy aims at reducing costs for airlines. The Transport Ministry is fast-tracking initiatives to lower operational expenses through measures such as restructuring airspace and improving infrastructure to enhance fuel efficiency and reduce costs, reported Bangkok Post.
CAAT advises travellers that the best flight deals can be secured by booking tickets at least two to three weeks in advance during the low season or six to eight weeks ahead during the high season.
Latest Thailand News
