Five-point plan to bring down fares. Flight prices taking off. Prime Minister Prayut Chan-o-cha has ordered the Transport Ministry to proceed with a five-point plan to tackle the soaring prices of air tickets in the short and long term. Bangkok Post

Five-point plan to bring down fares

Prime Minister Prayut Chan-o-cha has ordered the Transport Ministry to proceed with a five-point plan to tackle the soaring prices of air tickets in the short and long term.

Deputy Transport Minister Atirat Ratanasate said the ministry has informed the prime minister of the measures taken and those in the pipeline to address the substantial hikes, which is due to the surge in demand after the Covid-19 pandemic.

The Civil Aviation Authority of Thailand (CAAT) has looked into the causes and factors and developed its five-point plan to deal with the issue that has frustrated passengers, affecting the tourism industry.

Gen Prayut has told the ministry to proceed with the plan and instructed the CAAT to keep tabs on domestic airfares and urge people to plan their trips in advance for more affordable air tickets, he said.

The CAAT has proposed five measures, including increasing ground handling capacity, relaxing rules to create flexibility for airlines, and considering a subsidy programme.

According to the aviation regulator, limited ground-handling capacity causes airlines to limit flights, so more ground-handling operators should be allowed.

Positive incentives should be introduced to encourage airlines to return their flight slots as early as possible if they cannot operate the flights so that the slots can be reallocated, officials said.

Airlines are operating with a limited number of aircraft, so related rules could be eased to enable them to procure more aircraft to solve the seat capacity problem, the CAAT said.

The CAAT suggests airlines should be given more flexibility regarding maintenance work carried out in other countries. When aircraft are serviced, the airlines' flight capacity is reduced.

As a long-term measure, laws should be improved to promote investment in maintenance centres to serve the country's growing airline business.

One short-term measure is to allow Thai-registered airlines to be serviced at the facility run by Thai Airways International.

Air tickets on certain routes are expensive due to low market demand or the service being provided by a single operator. The higher the airfares, the lower the demand.

The government should consider a subsidy policy for airlines that operate flights to less popular destinations.

The measure would drive demand and make these airports more attractive for investors, officials said.