The International Air Transport Association (IATA), the global airline body, warned yesterday that growth in Thailand's aviation sector will be jeopardised unless it urgently resolves critical issues involving safety, capacity and costs.
Tony Tyler, director-general of the IATA, said safety oversights raised last year by both the International Civil Aviation Organization (ICAO) and the US Federal Aviation Administration (FAA) must be addressed.
The safety of the tarmac, taxiways and apron area of Suvarnabhumi airport, where aircraft can get stuck in the soft surface, is the latest issue brought up by the IATA chief.
Suvarnabhumi's capacity crunch and the long delay in expanding facilities against a backdrop of ballooning traffic demand and overcrowding have also become critical issues requiring prompt attention, Mr Tyler said.
Furthermore, new fees and levies either imposed or planned by Thai authorities — such as the 35-baht fee per segment for an advanced passenger processing system — are adding costs and eroding the country's competitive edge.
Thailand ranks 35th in the World Economic Forum’s Travel and Tourism Competitiveness Index, behind Japan, Singapore, Hong Kong, China, Malaysia and South Korea.
The airline operating environment is extremely competitive. Low-cost carriers account for 54% of the short-haul market in Southeast Asia. The Gulf hubs are strong and growing competitors for long-haul traffic.
“In the face of intense competition, Thailand’s aviation competitiveness is being chipped away with various new or increased taxes and charges," Mr Tyler said.
"It is in Thailand’s long-term self-interest to review and abandon proposals that increase the cost of transportation. That includes taxes or charges.”
At a media briefing in Bangkok yesterday, Mr Tyler spoke about the importance of aviation to Thailand's economic success and as a main driver of tourism.
IATA estimates that aviation and related activities account for some 2 million Thai jobs and generate US$29 billion in GDP.
By 2035, those figures are forecast to reach 3.8 million and $53 billion.
Mr Tyler conveyed his concerns about those issues during a meeting with Transport Minister Arkhom Termpittayapaisith on Wednesday.
He said he had a good discussion with the minister, who paid "close attention" to the topics raised.
"I have no doubt that they are serious about improving the safety regulations and programmes, and for cost constraints I hope they consider what I said,” Mr Tyler added.
On safety concerns about the "soft spots" at Suvarnabhumi, he said Thai authorities appeared to understand the urgency of resolving the matter.
Aircraft frequently get “stuck” in the soft surfaces that are the result of substandard materials.
The extra power and towing needed to manoeuvre through these surfaces is a safety risk to ground personnel, ground vehicles and aircraft.
On top of that, frequent surface repairs create congestion.
“The constant resurfacing of the tarmac, taxiways and apron area with asphalt is an unacceptable patchwork solution," Mr Tyler said. "We literally need a 'concrete' solution."
The assessments by ICAO and the FAA look at what the government is doing — not the airlines.
The two safety auditors have pointed out safety oversight concerns and divergence from global standards at the government level.
"Safety is aviation’s top priority, and the government of Thailand must address these concerns in support of a vibrant aviation sector that is the backbone of travel and tourism,” Mr Tyler said.
IATA has continued with its long-standing advocacy for Thailand to concentrate on developing Suvarnabhumi airport as a strong single air hub for Thailand, rather than dispersing traffic between two other airports in the region, Don Mueang in Bangkok and U-tapao in Rayong.
"If you disperse the traffic between those two airports, you are not benefiting from the strength of one strong hub," Mr Tyler said.
Suvarnabhumi has faced a capacity crunch: handling more than 52 million passengers a year, which already exceeds the terminal design capacity of 45 million, even as demand grows by 10% annually.
Fast-tracking the phase two terminal expansion would provide a much-needed increase in capacity at Suvarnabhumi.
IATA is also calling for the third runway plan at Suvarnabhumi to move forward.