Thai Transport Ministry weighs airline debt extension, Jet A-1 tax cut
Phiphat Ratchakitprakarn heard carriers' proposals on aviation fees, payment terms and Jet A-1 excise tax after the Middle East conflict raised costs.
- Thailand's airline association is seeking government relief due to rising jet fuel costs caused by conflict in the Middle East.
- One key proposal is to extend the payment period for aviation fees by six months for the April to September 2026 billing cycle.
- Airlines have also requested a significant, temporary reduction of the excise tax on Jet A-1 fuel from THB4.726 to THB0.20 per litre.
- The Transport Ministry is now considering these proposals and has assigned the Civil Aviation Authority of Thailand (CAAT) to review them.
Transport Minister Phiphat Ratchakitprakarn met Puttipong Prasarttong-Osoth, president of the Airlines Association of Thailand, Bangkok Airways executives and executives from Thai AirAsia, Thai VietJet Air, Nok Air and Thai Lion Air, to hear and discuss the impact on flight operating costs from the conflict in the Middle East.
Phiphat said the meeting was held to discuss the impact of rising aviation fuel prices caused by the conflict in the Middle East, which had left airlines carrying a heavy cost burden.
Airlines had tried their utmost to maintain flights, even while incurring losses during the recent Songkran festival, to ease the impact on passengers.
However, they now needed to reduce flights while continuing to operate more than 60% of their pre-crisis operating plans.
The association’s proposals for the Transport Ministry to consider are as follows:
Reduce, waive or defer increases in aviation charges for six months.
Extend the payment period (credit term) for aviation fees, and for billings for April to September 2026, by six months.
Reduce the excise tax rate on Jet A-1 aviation fuel from THB4.726 per litre to THB0.20 per litre for six months.
Phiphat added that in cases where airlines reduce flights, they must be ready to take care of passengers and provide remedies in full accordance with regulations.
As for the proposals, the Transport Ministry has assigned the Civil Aviation Authority of Thailand (CAAT) to consider them with relevant agencies and examine the details carefully to reach a joint conclusion, comparing them with assistance measures introduced during the COVID-19 pandemic, to deliver the greatest benefit to the public and the country’s aviation industry as a whole.
