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8 Thai Airlines must provide a business recovery plan or lose out on additional routes

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8 Thai Airlines must provide a business recovery plan or lose out on additional routes | Thaiger
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Commercial Airlines Registered in Thailand must provide a business recovery plan or run the risk of the civil aviation authority of Thailand (CAAT) halting the allocation of additional routes. According to reports, eight airlines have been targeted.

The 8 airlines on the list from the Civil Aviation Commission (CAC) are Thai Airways, Thai Smile Airways, Nok Air, AirAsia X, VietJet Air, Thai Lion Air, Asia Atlantic Airlines, and City Airways.

Comments by Transport Minister, Saksayam Chidchob, indicated that are also three other domestic carriers that will be placed under special monitoring outside of the 8 already mentioned.

The CAC has also instructed the CAAT to work together with the Food and Drug Administration (FDA) on the provision of Covid-19 vaccines to civil aviation personnel who directly handle tourists and air passengers in preparation for resuming international flights.

Thailand’s Central Bankruptcy Court last year, allowed flagship carrier Thai Airways to go ahead with debt restructuring as the airline has been hard hit by the Covid-19 pandemic. It is the biggest challenge the airline has ever faced as they defaulted on loans.

Thai Airways was under financial pressure even before the coronavirus outbreak caused passenger numbers to plummet, as low-cost airlines from South-East Asia continued put them under pressure on several routes. In 2019, it reported losses of 12bn baht.

Thai Airways is a state-owned enterprise of the Thai government and is on the verge of liquidation, as the airline is seeking urgent funding. Late last year they put up several aircraft for sale including 10 Boeing 747s and 12 Boeing 777s. The airline has around 80 aircraft and employs 21,500 people. To make matters more difficult, the International Air Transport Association thinks air travel is not expected to return to normal until 2023, which will put further pressure on Thai Airways’ restructuring plans.

SOURCE: Bangkok Post/AA com tr

 

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11 Comments

11 Comments

  1. Avatar

    Mr cynic

    Sunday, March 14, 2021 at 1:37 pm

    The projected figure of the aviation industry recovering by 2023 is probably very optimistic.for long haul arrivals that thailand is highly dependent on at present most senior industry figures are looking at q4 2025 recovery minimum.short haul will probably recover much quicker.it would probably be best for the thai tourism sector to focus on regional countries such as china and india.
    The chances of a quick recovery from the traditional north european markets is very slim.ultimately nobody knows.

  2. Avatar

    Ian Bromley

    Sunday, March 14, 2021 at 6:03 pm

    There is no country in the world that does not have an air transport crisis and the ritual chest beating of this minister contributes nothing constructive to the local carriers that are desperately clinging on by their finger nails. Better for him to be working to construct survival plans than issuing threatening destructive statements. But then what could one expect from someone with little experience in his portfolio. This posturing is nothing more than a fig leaf trying to cover his inadequacy and helps potential pax not one bit.

  3. Avatar

    Bobby m

    Sunday, March 14, 2021 at 10:28 pm

    Quite right Ian.

    All he is doing is pushing them in the lake with their hands tied behind their back.

    Sadly it’s what happens when nepotism and job purchase exits. Abilities, fall far short of the levels required to understand and undertake the necessary actions to obtain success. Notice there is no mention of Bangkok Air, I wonder why.

  4. Avatar

    toby andrews

    Sunday, March 14, 2021 at 10:30 pm

    I read today on TripAdvisor of a passenger who flew to Australia on December 2019. His return flight was cancelled.
    He is still stranded in Perth Australia in February 2021.
    Despite Thai airways selling flights from Perth Australia to the UK.
    Do not buy anything from Thais with money up front.
    They will steal your money and the Thai courts will help them.

  5. Avatar

    Pindringham

    Monday, March 15, 2021 at 1:08 am

    The Thai statute and process is fine but the courts and staff are gross. They open their mouths to eat or lie.

  6. Avatar

    Tony

    Monday, March 15, 2021 at 11:17 am

    Guys all that is keeping this airline from been completely closed down is pride Any one can see this airline is broke.every one will loose in the end creditors and the public waiting for refunds. Like last month’s snow where is it .Gone never to be seen again,

  7. Avatar

    Mr cynic

    Monday, March 15, 2021 at 1:55 pm

    Think a couple of the listed airline’s have been out of buissness for several years already?

  8. Avatar

    toby andrews

    Monday, March 15, 2021 at 3:37 pm

    Snow might disappear but will Thai greed and corruption?
    I see no signs that it will . . .

  9. Avatar

    Andre

    Tuesday, March 16, 2021 at 1:17 am

    Is Thai airlines still considered a state-owned enterprise after the downsale of the government stake to less than 50%?

  10. Avatar

    MikeG

    Wednesday, March 17, 2021 at 1:47 am

    The best long term solution would be to privatize Thai Airways and merge it with Malaysian and Singapore Airlines. Otherwise, it will continue to cost to good people of Thailand tons of hard-earned money to subsidize a poorly run jobs program.

  11. Avatar

    Mark R

    Saturday, March 20, 2021 at 7:56 pm

    And in other news, Thai Airways TAWNF is up 3,000% from $0.14 to $4.95.

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Andrew is an esteemed writer with 20+ years of blogging experience. His passion is aviation and football

Coronavirus (Covid-19)

Aviation authority calling for 20,000 vaccine doses for crew, ground staff

Maya Taylor

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Aviation authority calling for 20,000 vaccine doses for crew, ground staff | Thaiger
PHOTO: Christian Junker on Flickr

The Civil Aviation Authority of Thailand is calling for vaccine doses to protect around 20,000 airline crew and ground staff before the country re-opens to international tourists. The CAAT says it’s vital that those working in the aviation industry are protected and has submitted its request to the Centre for Covid-19 Situation Administration.

According to Suthipong Kongpool from the CAAT, there are around 20,000 airline employees, including crew and ground staff, who will need to be vaccinated. As 2 doses are required, a total of 40,000 doses are needed to fully protect staff. The Bangkok Post reports that the CAAT will meet on Thursday to review the aviation sector’s readiness for when the country re-opens without international arrivals having to quarantine.

Suthipong says they are seeking enough vaccine doses to protect employees of Thai-registered carriers.

“It’s a confidence-building measure for tourists and those providing the services to them.”

From July, the southern island of Phuket will be the first part of the country to waive quarantine for vaccinated international arrivals, subject to 70% of local residents being vaccinated. The “sandbox” project is a pilot programme that will be expanded to other areas if it proves successful. Between October and the end of the year, 5 other provinces – Phang Nga, Surat Thani, Krabi, Chon Buri, and Chiang Mai – are expected to adopt the programme. Officials hope to be able to re-open the country fully from January 2022.

According to the CAAT, the first foreign visitors expected to return to Phuket will be Chinese tourists, given that country’s success in managing the pandemic. Meanwhile, the CAAT says Thailand will see a 7% increase in air traffic this month compared to last, with a total of 36,150 domestic and international flights.

SOURCE: Bangkok Post

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Business

Labour union angry over changes to Thai Airways staff contracts under rehab plan

Maya Taylor

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Labour union angry over changes to Thai Airways staff contracts under rehab plan | Thaiger
PHOTO: Wikimedia

Union representatives are questioning changes made to the employment terms of Thai Airways staff as part of the national carrier’s debt-restructuring plan. The labour union claims the changes have removed or diluted several staff entitlements and welfare benefits, pointing the finger at acting president, Chansin Treenuchagron, who signed the orders.

The union is calling on the Department of Labour Protection and Welfare to review the changes to check if they align with a debt-restructuring plan submitted to the Central Bankruptcy Court. According to a Bangkok Post report, the union believes the signed orders may go against the terms of the rehab plan currently being reviewed by creditors. They include an order related to the company’s new organisational structure, as well as the screening of workers who will continue to be employed by the carrier during and after the rehab process.

Union representatives accuse the airline of changing the terms and conditions of employee contracts, meaning weaker welfare benefits. They are asking the DLPW to confirm if the changes comply with the 1940 Bankruptcy Act, the 1975 Labour Relations Act, and the 1998 Labour Protection Act. The union says that if the changes are found to violate the acts, Chansin should be ordered to cancel the orders and draw up new employment terms that comply with the airline’s rehab plan and with employment law.

SOURCE: Bangkok Post

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Thailand

Leader of Thai cryptocurrency exchange warns regulators about tight restrictions

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Leader of Thai cryptocurrency exchange warns regulators about tight restrictions | Thaiger
Stock photo by André François McKenzie for Unsplash

The co-founder of Thailand’s largest cryptocurrency exchange has slammed regulators for plans to set requirements that would limit who can trade cryptocurrency. Following a drastic spike in domestic crypto trading, Thailand’s Securities and Exchange Commission, decided to look into tighter restrictions and say traders will be soon required to have experience, be educated in trading or pass an exam.

Too many regulations will push some Thais away, according to 33 year old Atichanan Pulges, co-founder and CFO of Bitkub. He warns that too many restrictions might drive amateur traders to unregulated international platforms in other countries.

Atichanan told Bloomberg that these restrictions will do little to stem the increasing popularity of cryptocurrencies in Thailand. The SEC’s restrictions were proposed in response to an unprecedented surge in crypto trading beginning in November 2020. According to the SEC’s own data, crypto-trading in Thailand jumped six fold from 18 billion baht in November to 124 billion baht in February. Bitkub themselves reported a daily turnover of 4.2 billion baht throughout February, a jump of nearly 40% from the previous month.

Thai authorities continue to struggle with the increasing popularity of cryptocurrencies, as they strive to balance embracing innovation with protecting investors. The SEC recently walked back potential restrictions which would have limited crypto purchases to those with a minimum income of 1 million baht after public backlash. Instead, they’ve proposed a program to educate potential investors of the risks involved in investing in the notoriously volatile crypto market.

Undeterred by any potential regulations, Bitkub – who claim to host around 90% of crypto trading in Thailand – have announced plans to expand over the coming year, aiming to double their current staff to 500 and introduce their own debit card. The company is also aiming to achieve the coveted ‘unicorn’ status (a private valuation of more than $1 billion) at some point in the near future.

SOURCE: Bloomberg

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