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Budget airlines seek measures to reduce financial burden

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Budget airlines seek measures to reduce financial burden

By The Nation

 

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Representatives from five low-cost airlines namely Thai Air Asia, Thai Lion Air, Nok Air, VietJet Air, and Bangkok Airways formally requested the Finance Minister on November 13 to help them solve their financial problems, Vice Minister of Prime Minister’s Office Charnkrit Detwithak said.

 

He explained that the issue was generated by a decrease in customers from 80-100 per cent to 70-89 per cent per flight and the strengthening of the baht.

 

Even though the lower price of oil has eased business costs, budget airlines are still facing a variety of problems, which have led to the downsizing and dissolution of some airlines.

 

The airlines feel that the situation could be alleviated by lowering the excise tax for airplane fuel, currently at Bt4.726 a litre and controlling its limit on a sliding scale depending on the baht exchange rate.

 

“We are concerned about the situation of all entrepreneurs, not only low-cost airlines. The representatives have requested the setting up of a committee to seek a solution and present it to the Minister of Finance and the Cabinet,” Charnkrit said.

 

Source: https://www.nationthailand.com/news/30378323

 

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-- © Copyright The Nation Thailand 2019-11-14

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The Thai Gov has a huge surplus so just throw some cash their way that should alleviate some of their Burdon financially anyway . 

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More sick patients suffering from the rampant tourist deficiency. Will the doctor allow some palliative money injections?

Edited by RotBenz8888
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"Decrease in customers"...............but TAT states that all is OK on the tourism front?

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8 minutes ago, MiNombreEsFicticious said:

I was gonna suggest the airlines cut back on maintenance to save money, but they're probably already doing that. Never mind.

Not sure cutting back on maintenance is a good idea.

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That's strange. I thought the TM 30 would increase the number of budget airline passengers.

I certainly fly around Thailand on weekend breaks a lot more now that it also gives an excuse to spend Mondays at the Immigration office. Always a terrific laugh down there.

 

Edited by donnacha

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Not according to the 4 flights I have taken this week - the flights were 100% full.

 

Maybe its poor route choices, or poor times that need to be rethought.

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Are they implying that a race to the bottom isn’t a good business model?
 

In true Thai fashion, now would be a great time for 2 or 3 more budget airlines to pop up.

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24 minutes ago, DLock said:

Not according to the 4 flights I have taken this week - the flights were 100% full.

 

Maybe its poor route choices, or poor times that need to be rethought.

You mean flights were full during one of their biggest holidays? That’s absurd.

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Supply and demand, it's not rocket science! …...Or will yet another "stimulus package" be the answer?

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