Connect with us

Business

Thai cabinet approves extension of jet fuel levy holiday

Thaiger

Published 

 on 

Whilst the current cheapest domestic air fares have been around the same prices they were before local airlines were grounded, there is a possibility of some more drops in your seat prices.

Thailand’s budget carriers could be offering lower seat prices after the cabinet yesterday approved an extension of the jet fuel tax holiday. Thailand’s low-cost carriers have been slowly adding new routes and frequency since taking back to the Thai skies at the start of July. The excise tax on jet fuel was dropped to just 0.2 baht per litre from the earlier 4.726 baht in February this year to try and mitigate the early impacts of the pandemic on domestic operators. That reduction expired at the end of September. The extended excise reduction will now run until April 9, 2021.

But the CEO of Thai Air Asia, Santisuk Klongchaiya, says the average lowest-cost fare at the moment is 900-1,000 baht, depending on the route and time of flight. Lion Air’s head of commercial operations, Nuntaporn Komonsittivate, told the Bangkok Post that their average domestic airfare is 1,200-1,500 baht… “slightly higher than the pre-pandemic period rate of around 1,000-1,200 baht as the aviation industry has to depend on domestic travellers”.

Both acknowledge that extending the reduction in the jet fuel levy will certainly help keep the prices down as their flights start filling up again.

Airlines met with the Thai PM last month calling for the allocation of 24 billion baht in soft loans to help tide the local carriers over until the international borders re-open. Although PM Prayut has agreed in principle, the request is yet to be granted.

Bangkok Air announced this week an Elite Card for unlimited travel throughout 2021 which will cost passengers 100,000 baht (plus taxes, conditions apply, etc, etc). Meanwhile the Thai Air Asia “Passport”, that ran from mid-July to mid-December for 3,000 baht, comes to the end of its promotion next month.

Thailand’s Sports and Tourism Minister, at yesterday’s remote Cabinet meeting in Phuket, acknowledged the importance of keeping the domestic air-fares competitive whilst the country had to rely on a mostly domestic-only tourism model until the borders could be safely re-opened, or when tourists were ready to start returning to Thailand.

The ‘av gas’ tax reduction is projected to cost the government 700 million baht in revenue during the period of the latest extension.

SOURCE: Bangkok Post

 

Want more Thailand news from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📝️ Join the conversation on Thaiger Talk - discuss news & life in our Thailand forums
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates

image

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:

Coronavirus (Covid-19)2 hours ago

Government plans 10 million vaccines for July

World5 hours ago

Thailand News Today | Vaccine deaths investigation, PM heads to Phuket, BMA extends vendor licences | June 18

Thailand6 hours ago

1 million AstraZeneca doses arrive, Anutin says “more” on the way

Phuket Sandbox July 1st

days
hours
minutes
seconds

Thaiger is getting behind local businesses for the restart of tourism in July - up to 50% discounts across all advertising packages in June!

Sponsored by image

Drugs6 hours ago

1.2 tonnes of methamphetamine and heroin seized near Malaysian border

Coronavirus (Covid-19)6 hours ago

Pattaya bars plead for government help

Thailand6 hours ago

Colour-coded zoning revised, restrictions to ease nationwide

Transport7 hours ago

Department of Land Transport will reopen, issue licenses

Best of7 hours ago

Top 8 Things to do in Chiang Mai

Tourism8 hours ago

Krabi schedules 82 flights per week from late October

Best of8 hours ago

Top 6 Online Forums in Thailand

Coronavirus (Covid-19)8 hours ago

Friday Covid Update: 3,058 new cases; provincial totals

Thailand8 hours ago

Worker falls off roof in Chon Buri, sustains multiple injuries

Phuket8 hours ago

Talad Kaset market in Phuket reopens

Coronavirus (Covid-19)9 hours ago

PM Prayut tests negative after parliament maid has Covid-19

World9 hours ago

Myanmar: American journalist’s detention extended 2 more weeks

Thailand4 months ago

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

Tourism4 months ago

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

Phuket4 months ago

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

Tourism4 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand4 months ago

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

Tourism4 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending