Transport minister outlines overhaul of aviation agency

TUESDAY, JUNE 23, 2015
Transport minister outlines overhaul of aviation agency

THE TRANSPORT Ministry has outlined a major restructuring of the Civil Aviation Department, and associated budgetary requirements, as it strives to resolve the aviation-safety crisis.

Transport Minister Prajin Juntong said yesterday that under the proposed restructuring, the department would be transformed into the National Office of Civil Aviation. Two other new bodies would be formed – an Airports of Thailand Department and an Office of Monitoring and Analysis of Aviation Problems, under the Office of the Prime Minister – to increase the level of screening in the sector’s inspection system.

Around Bt2.1 billion will be allocated from the 2016 fiscal budget to cover the establishment of these new organisations, and another Bt400 million might be needed for additional staffing, he said.

In regard to the International Civil Aviation Organisation’s recent red-flagging of Thailand for its failure to address significant safety concerns, Prajin acknowledged that it would take time to provide sufficient safety oversight to ensure the effective implementation of applicable ICAO standards.

"There is some problem in finding qualified personnel to inspect the certificates, which will lead to a delay in the new round of examination of the air operators’ certificates," he explained.

The ICAO originally expected the inspection work on the affected airlines to be undertaken before July 11, but the deadline will now be extended. Forty-one airlines – 28 domestic carriers and 13 foreign-based airlines – operating out of Thailand will come under the new round of certificate inspection.

The Transport Ministry will hire certified foreign personnel to make up for the shortage of domestic inspectors, said the minister.

The planned hiring process will be finalised this week and presented to Prime Minister Prayut Chan-o-cha, he added.

Meanwhile, Thai AirAsia yesterday announced that it would continue its expansion and budgeting as planned, despite the unresolved aviation-safety crisis.

"This year, Thai AirAsia plans to operate five more routes, mostly to China and India. We have just received three aircraft, and will have another two later this year. We will also have a new hub, U-tapao Airport, to link Thailand and destinations overseas," said chief executive officer Tassapon Bijleveld.

By the end of this month, the airline will operate from Bangkok to Bangalore, which will be its second destination in India.

He said Asia Aviation, the listed majority shareholder of Thai AirAsia, had not been affected by the ICAO’s decision to red-flag Thailand on its website last Thursday.

The budget carrier can give an assurance that it will continue operations as usual, he added.

However, Thai AirAsia X on Monday announced the suspension of its service to the Japanese city of Sapporo from August 1, although it plans to reintroduce the service once the Japan Civil Aviation Bureau gives it long-term traffic rights.

The Bangkok-Sapporo route was launched a few months ago and now contributes about 10 per cent of AirAsia X’s income.

Meanwhile, Tassapon said Thai AirAsia aimed to carry 14.5 million passengers this year, as previously projected.

It is also confident that Middle East respiratory syndrome (MERS) will not have any further impact on its future bookings, said the CEO.

The airline is satisfied with its first-quarter results and expects the air-travel sector to continue to expand this year, especially in the final quarter, he added.

He expressed confidence in Thai AirAsia’s ability to ensure the utmost safety standards, while citing the fact that many countries had recently increased safety precautions, including ramp inspections, station audits and base audits, all of which had shown AirAsia "to be within acceptable parameters, with no issues for concern".