Permission granted to foreign pilots to operate flights in Thailand is a temporary measure designed to address a surge in flight demand that local operators have been unable to meet, says the Ministry of Transport.
By making more planes and flights available, the measure has proven effective in lowering airfares, said Krichanont Iyapunya, an assistant to Transport Minister Suriya Jungrungreangkit.
The approval of wet-lease arrangements, as they are called in the industry, is temporary and will expire on Dec 31, 2025, he added.
Mr Krichanont was responding on Saturday to a petition filed on Friday by the Thai Pilots Association, which he had accepted on behalf of Mr Suriya.
A wet lease is an arrangement in which one airline (the lessor) provides an aircraft, complete crew, maintenance and insurance (ACMI) to another airline or air travel broker (the lessee), which pays based on hours operated.
The lessee is responsible for fuel, airport fees and other duties or taxes.
The surge in demand for air travel services following the Covid-19 pandemic has left the existing fleet of aircraft owned by local airlines insufficient to meet passenger demand. This shortage had contributed to higher airfares, said Mr Krichanont.
He said the wet lease arrangement serves as a quick solution, as it has significantly reduced air ticket prices. This in turn supports Thailand’s tourism growth and its policy of positioning the country as a regional aviation hub.
“While relying on this temporary measure, the government continues to encourage airlines to invest in acquiring new aircraft,” he added.
Teerawat Angkasakulkiat, president of the Thai Pilots Association, said the association understands the state of Thailand’s aviation industry.
However, he said pilots are concerned that approving wet lease arrangements could lead to Thailand being red-flagged for violating the Convention on International Civil Aviation (Chicago Convention), established by the International Civil Aviation Organisation (ICAO).
Mr Teerawat said earlier that as Thailand is not officially committed to Article 83bis of the Chicago Convention, which allows the state of registry to transfer supervisory responsibilities for an aircraft to the state of the operator. However, granting this type of permission might breach aviation laws and affect the status of the country.
In the worst-case scenario, he said, Thailand could incur a red flag, as happened in 2015 when the country failed an ICAO safety test, which stopped Thai carriers from expanding to other countries.
ICAO rules do not prohibit foreign pilots from flying on domestic routes. Flight crew members from one country are allowed to operate between other countries if they are registered in another country.