Aviation regulator bids to curb high airfares
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Aviation regulator bids to curb high airfares

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Travelers visit Phuket airport in December. (Photo: Achadthaya Chuenniran)
Travelers visit Phuket airport in December. (Photo: Achadthaya Chuenniran)

The Civil Aviation Authority of Thailand (CAAT) on Monday unveiled plans to tackle high airfares during peak travel seasons, particularly around the Songkran holiday.

CAAT director Suttipong Kongpool said the initiative follows a directive by Deputy Prime Minister and Transport Minister Suriya Jungrungreangkit to control airfares for the benefit of travellers.

CAAT has outlined several measures to keep airfares reasonable. A price ceiling has been set based on flight distance, capping low-cost airline fares at 9.40 baht per kilometre and full-service airline fares at 13 baht per kilometre. This regulation applies only to direct bookings with airlines.

The pricing structure is based on International Civil Aviation Organization standards. Approximately 25-33% of the collected fares go towards fuel, 20-31% for flight operations and 8-16% for maintenance.

The aim of setting a price cap is to prevent airlines from excessively inflating ticket prices beyond reasonable profit margins.

To further address airfare issues, the CAAT has proposed three key strategies.

The first is to increase supply. The CAAT is working with airlines, airports and air traffic service providers to increase flight availability during peak travel seasons. Plans include adding more flights, expanding airline operations, and enhancing aircraft maintenance facilities.

Another strategy is to conduct regulatory reviews. The CAAT is gathering data to reassess fare regulations and ensure a balanced pricing structure that benefits both airlines and passengers.

The last strategy involves cost reduction for airlines. The Transport Ministry is expediting initiatives to lower operational costs by, for example, restructuring airspace and improving infrastructure to enhance fuel efficiency and reduce expenses.

According to CAAT, travellers can obtain the best flight deals by reserving tickets at least two to three weeks ahead of travel dates during the low season or six to eight weeks in advance during the high season.

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