Troubled airline, unidentified, to be grounded

Troubled airline, unidentified, to be grounded

CAAT mulls freeze on operator permit

Chula Sukmanop, director of the Civil Aviation Authority of Thailand (CAAT), won't give the airline's name. (Bangkok Post file photo by Somchai Poomlard)
Chula Sukmanop, director of the Civil Aviation Authority of Thailand (CAAT), won't give the airline's name. (Bangkok Post file photo by Somchai Poomlard)

The Civil Aviation Authority of Thailand (CAAT) plans to suspend or revoke the Air Operator Certificates (AOCs) of a Thai-registered airline which is facing a financial crisis.

An inspection by the agency found the airline was previously owned by a Thai operator who sold his shares to a Chinese firm which in turn used the Thai company as its nominee to run the business, CAAT director Chula Sukmanop yesterday said. The name of the airline was withheld.

Mr Chula was speaking after a meeting of a sub-committee to address civil aviation issues, chaired by Transport Minister Arkhom Termpittayapaisith yesterday. The plan to suspend or revoke the AOCs came after the CAAT launched an inspection of all airlines operating international flights, prior to reissuing them with the AOCs in accordance with the safety standards of the International Civil Aviation Organisation (ICAO).

Mr Chula said airlines facing problems including financial woes risk having their Air Operating Licences (AOLs) revoked.

The airline was one of three required to propose a financial rehabilitation plan to the agency. The airline submitted the plan but failed to carry through with it, he said.

However, the CAAT must wait for another inspection this month before deciding whether to suspend or revoke the airline's AOCs as it would affect passengers and its business operation.

In the event not many passengers are affected, its AOCs could be revoked immediately following the inspection as the passengers could be transferred to other airlines.

Mr Chula said a second airline which faced a similar financial problem has also been called in to meet the CAAT after its employees lodged complaints. The airline would be instructed to devise a financial rehab plan as an initial solution, he added.

As for issuing new AOCs, the certificates were expected to be granted to nine out of 23 Thai-registered airlines by June as part of plans to get the ICAO to lift its ''red flag'' safety warning over Thai airlines which was issued earlier.

The warning indicated significant safety concerns for Thailand's failure to meet standards in regulating aviation businesses.

The nine are Thai Airways International (THAI), Bangkok Airways, Thai AirAsia, Nok Air, K-Mile Air, Orient Thai Airlines, AirAsia X, NokScoot and Thai Smile. The approval of AOCs would be submitted to the ICAO so it could conduct an inspection. The remaining 14 airlines were expected to receive AOCs in January next year.

"We don't have to wait for all 23 airlines to be granted AOCs. The ICAO's inspection can be launched after AOCs are issued to the first nine airlines which are the main aviation operators flying 70% of the international flights (out of Thailand)," he said.

Issuing the new AOCs involves five steps, the final one requiring the CAAT director to consider the opinions of specialists in aviation operations, airworthiness, cabin safety and dangerous goods. Mr Chula said THAI, Bangkok Airways and Thai AirAsia were at the fourth step involving inspections of aircraft performance and field tests while Nok Air, K-Mile Air and Orient Thai Airlines are at the third step which is aviation document inspection.

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