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Budget airlines seek measures to reduce financial burden

Nov 14. 2019
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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.

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