Pattaya hotel chases up Chinese businessmen for 7 million in rent

Air Asia is introducing a super app, in an attempt to off-set – at least partially – the significant financial losses brought about by the Covid-19 pandemic. The app will offer users a variety of options, including digital payment services, delivery services, and an e-commerce platform. Chief Executive Tony Fernandes says the idea for the app was floated prior to the pandemic, but Covid-19 hastened its development.

“This journey didn’t start during the pandemic, this journey started 2 years ago, but it was accelerated because of the outbreak. This is not a Plan B, this was always our Plan A, but we still think aviation will definitely come back.”

Air Asia was hit with losses of US$238 million in the second quarter of 2020 and says it desperately needs to seek new sources of revenue while the economic effects of Covid-19 continue to be felt around the globe. The Bangkok Post reports that from October 8, users in Thailand and the wider ASEAN region can access the new app through the company’s website or through its existing mobile app.

Fernandes says payment and logistics services will be provided by the airline’s subsidiary operation, Air Asia Digital. Users will be able to book flights (including those of other airlines) and hotels, as well as enroling in a rewards programme.

“Air Asia’s roots are from moving people from A to B and moving cargo from A to B, and that is the basis of Air Asia Digital and the basis for our platform AirAsia.com.”

The app is expected to face tough competition from super apps Grab and Gojek, currently understood to be in merger talks. Should a merger go ahead, the combined operation would create a monopoly on food delivery and car-hailing services in the ASEAN region. However, Fernandes remains optimistic, with the airline hoping to complement existing services.

“I don’t believe we are here to compete, but here to complement. Airlines always see us as competitors, but we complemented the full service and created a new market that was not there. Before, only a few people could fly, now everyone can fly, and in the same way we will complement the market.”

SOURCE: Bangkok Post

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The Social Security Office, a department under the direction of Thailand’s Ministry of Labour, is being asked to explain its investment in the trust fund of Phuket’s Sri Panwa Phuket Resort. The demand comes as members of the opposition and political activists call for an investigation into the property’s land rights. The owner of Sri Panwa Phuket, Vorasit Issara, has been condemned online recently, with his property attracting multiple negative reviews, after he criticised anti-government protest leader, Panusaya Sithijirawattanakul.

Thai PBS World reports that the Civil Society for State Welfare is calling on the SSO to clarify its investment in the Sri Panwa Hospitality Real Estate Investment Trust, thought to be worth around 500 million baht. Nimit Thian-udom says that, while the SSO’s investment does not break any laws, the board must explain the reasons behind the investment decision and clarify the return on that investment. In addition, he says the SSO should attach more importance to good governance when choosing where to invest.

The call for clarity is echoed by opposition MP Chirayu Huangsap, from the Pheu Thai Party, who calls on the Labour Minister to explain the investment. He adds that any discrepancies will be reported to both the National Anti-Corruption Commission and the Public Sector Anti-Corruption Commission.

The land rights of the luxury Sri Panwa Phuket resort, which sits on prime land atop Phuket’s Cape Panwa, overlooking the south-eastern tip of the island, are also being called into question. Veera Somkwamkid, from the People’s Network Against Corruption, says he is looking into the property’s land rights and will pass his findings to the Department of Special Investigations.

For his part, the Labour Minister, Somsak Thepsuthin, says he doesn’t know if the property has been legally built, saying it’s up to the DSI to investigate and that a complaint does not need to be filed in order for them to do so.

Meanwhile, review site Tripadvisor has had to suspend reviews for the Sri Panwa resort, as anti-government netizens exact their revenge on the proprietor by posting negative feedback on the property.

“Due to a recent event that has attracted media attention and has caused an influx of review submissions that do not describe a first-hand experience, we have temporarily suspended publishing new reviews for this listing.”

SOURCE: Thai PBS World

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Airlines in Thailand are being offered a financial lifeline, as the Government Savings Bank announces soft loans for carriers left struggling as a result of the current Covid-19 ‘disruption’. Nation Thailand reports that the GSB is offering the loans over a 60 month period, with an annual interest rate of 2%. Chairman Patchara Anuntasilpa says the proposal will shortly be put to Cabinet for approval.

Airlines have been left financially devastated by the fallout from the ongoing Covid-19 pandemic, with countries closing their borders, passenger numbers plummeting, and carriers forced to slash the number of flights on offer. The services available, including the food services, were also curtailed early on as a preventative measure but that restriction has since been lifted. The effect is being keenly felt by all the airlines in Thailand, with the Kingdom’s borders closed to nearly all international traffic since March.

In a further effort to ease the financial crisis faced by Thai airlines, the Excise Department says it will extend the fuel tax cut for low-cost carriers by another 6 months from the end of this month. Patchara, who also serves as director-general of the Excise Department, says the tax may end up being abolished completely. In normal times, taxation on aviation fuel generates around 1 billion baht a year.

Air Asia has also cut some of its ground costs by using airport buses to ferry passengers from a cheaper aircraft parking area, back to the terminals, foregoing the costs of the airport airbridges. Flights from Phuket to Don Mueang, for example, are now a full ‘bus’ service, sometimes adding an additional 15 minutes at either end for the loading up of the buses and the trip to the planes or the terminal.

It’s understood the excise tax collected since October 2019 totals 503 billion baht, down more than 6.5% on last year’s figure. Most of the income comes from oil or oil products, cars, alcohol, and cigarettes.

SOURCE: Nation Thailand

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