Thailand's marijuana retail units are debating what the new legal threats might mean.
In a surprise move, The Thai prime minister revealed in an interview in New York that smoking pot for leisure needs to be outlawed once again. Srettha Thavisin told Bloomberg Television that the law needs to be rewritten to regulate ganja for medical use only. "There can't be a middle ground for recreational use," he concluded. Following the declassification of marijuana as a narcotic last year, around 6,000 "dispensaries" have opened nationwide with most of them not bothering to hide their sales to the smoke-for-leisure Thai and foreign population. The retail outlets are supposed to restrict to 0.2 percent the amount of tetrahydrocannabinol which is what gives inhalers the "high" sensation. But the whole ganja industry in Thailand has a great deal of latitude as there is no comprehensive law in place describing what is legal and what is not.
However, many commentators are skeptical that pot leisure smoking will again attract criminal penalties. "Off" Boonchert, who owns several retail outlets in Pattaya, said, "There isn't a sharp dividing line between medical use and leisure. A man with cancer might also enjoy the puff. One solution might be for customers to sign a paper prior to purchase indicating what illness they have." He added that the police would not want a return to the bad old days when the weed was sold underground which made it hard to control.
Another ambiguity is whether all the groups in the current eleven party coalition will agree on a common policy. The declassification last year was the achievement of health minister Anutin Charnvirakul whose Bhumjaithai party is still in the new government. Anutin has spoken favourably about new rules governing cannabis, but is also on record stating he disagrees the drug could become a narcotic once again. The popularity of Bhumjaithai in last May's general election was partly due to a pro-weed stance.
It will likely take up to a year for a new law to appear in the statute book. The expected clauses will emphasize protection of children and will likely detail new rules for Thai farmers growing cannabis for sale after registration. There will likely too be a ban on smoking cafes and promotional slogans such as "Have a high time here" or "Come to the stars with us". But it is still far from clear that the selling, purchase and use of cannabis by the public at large will once again automatically attract a prison sentence.
Srettha says Thaksin still has a lot to offer his government and the country
Prime Minister Srettha Thavisin on Thursday hinted that former leader Thaksin Shinawatra would get an advisory role in his government once he is out of prison.
Srettha said Thaksin would prove to be valuable to his administration and the country.
"I believe he has value to add to the government and to the people of Thailand," the PM said during an interview with Bloomberg Television in New York.
He also pointed to the ex-leader's huge popularity. "He was, and probably still is, the most popular prime minister in the history of Thai politics," Srettha said.
"Obviously, that comes with good reasons and if he becomes free it would be unwise of me not to seek his opinion and that of other prime ministers as well," he added.
However, the prime minister did not clearly state as to what role Thaksin would play in the new government. "Let's play by ear," Srettha said during his interview in New York.
Srettha, a property tycoon-turned-politician, acknowledged his political inexperience during his Bloomberg interview. But he dismissed any concerns about the stability of his coalition government. "I believe it is a very, very stable government," he said.
Thaksin is regarded as the patriarch of the Pheu Thai Party. The founder of Pheu Thai's predecessor Thai Rak Thai over two decades ago, the 74-year-old has retained huge influence over the current ruling party.
He served as prime minister from February 2001 to September 2006 before his government was ousted in a military coup.
Thaksin is serving jail sentences in multiple corruption cases following his return to Thailand after 15 years of self-imposed exile overseas. He reportedly was sent to Police General Hospital for treatment just hours after his return on a private jet on August 22.
Thaksin's flight touched down in Bangkok just hours before Srettha was voted in Parliament as Thailand's 30th prime minister. Srettha's win was credited to huge support from the Senate, in an arrangement widely seen as part of a deal between Thaksin and the royalist pro-military establishment.
The ex-premier recently saw his eight-year jail term reduced to one year due to a royal pardon. His family is looking at the possibility of securing his early release on parole, possibly in February.
The Thai baht continued to depreciate, reaching 36.24 baht per USD this morning, the lowest in 10 months. The currency has already weakened by 1.4% over the past week.
SCB Financial Markets expects the currency to be trading in the range of 35.95 to 36.25 baht per USD today. They said foreign investors are still selling their assets in Thailand, both in the bond and stock markets. Investors are also concerned about the impact of the government's stimulus measures on the country's financial stability.
Krungsri's Global Markets said crude oil prices have increased by 30% over the past three months, adding pressure to Thailand's trade balance. They also said investors are concerned that the government is willing to prioritize short-term economic growth over long-term financial stability.
The Bank of Thailand has reiterated many times that there is no need to stimulate consumption while Thai government bond yields are surging due to concerns over possible rising public debts from populist policies. There is a chance that the baht will continue to weaken.
Krungthai GLOBAL MARKETS said the baht has been depreciating more than other currencies in Asia, reflecting the impact of domestic factors. Investors are also unsure about the amount of Thai government bond issuance in the future. Many investors are also awaiting the results of the Federal Open Market Committee's meeting tomorrow, which could possibly strengthen the USD further if the new Dot Plot indicates that the Fed might hike its interest rates one more time this year.
Natreeya Thaweewong, PM's deputy secretary, on Tuesday offered an explanation as to why Prime Minister Srettha Thavisin's charter flight to New York to attend the 78th United Nations General Assembly from Sept 18-24cost 30-million-baht.
The prime minister flew to the US on a chartered Thai Airways International (THAI) charter flight.
She was responding to recent calls by political activist, Somchai Srisutthiyakorn, for opposition lawmakers and the House Committee on Anti-corruption and Misconduct to look into why the flight cost so much.
The service offered an all-round-trip from Suvarnabhumi Airport to New York with a stopover in Tokyo.
Ms Natreeya, who handled the travel arrangements, said e-bidding was held to seek a reasonable price, adding the Royal Thai Air Force (RTAF) wanted 32 million baht to put on a charter flight service, while Thai Airways asked for 25 million.
But the amount Thai Airways wanted rose to 30 million baht due to a hike in fuel prices.
In this regard, the price the RTAF set might have risen to 40 million baht, Ms Natreeya said.
Of the cost, 4.84 million baht was paid for aircraft-related expenses, 16.8 million baht was fuel costs, 1.47 million baht was for food and drink, 3.06 million baht was for ground services and 3.8 million baht was operation costs.
Ms Natreeya said around 50 other passengers who accompanied the premier on the aircraft, such as his daughter, paid for their own tickets and accommodation.
Representatives from the private sector made their own arrangements to fly to New York, she said.
She said the government opted for a charter flight to avoid disturbing other passengers on a commercial flight.
A source also said the THAI flight only offered business-class seats for Mr Srettha and his entourage.
The first official cabinet meeting under the administration of Prime Minister and Finance Minister Srettha Thavisin unveiled several major changes. Key among them were reductions in electricity and diesel prices effective this month, along with bi-monthly salary payments for civil servants starting next year.
Electricity prices will decrease to 4.1 baht per unit from 4.45 baht, beginning with the September billing cycle. Diesel prices will also be reduced to below 30 baht per liter, starting September 20. Further details on gasoline pricing for those genuinely affected will be announced at a later date.
A National Soft Power Strategy Committee has meanwhile been established, in line with campaign promises to boost income and create more opportunities for the Thai people. A three-year debt moratorium has also been enacted for farmers and small businesses.
Lastly, a new bi-monthly salary payment system for civil servants will be implemented starting January 1, 2024, with the aim of alleviating the financial burdens for lower-ranking officials.
Workers hold a May Day parade from the Democracy Monument to Government House to highlight their cause, on May 1. (Photo: Wichan Charoenkiatpakul)
Agreement is expected on raising the minimum daily wage to about 400 baht before the New Year, Prime Minister Srettha Thavisin said on Monday.
Mr Srettha, who is also finance minister, said increasing the minimum wage is one of the government's short-term policies to improve the people's economic well-being.
He had talked to people in the small-and-medium enterprise and industrial sectors about the economic roadmap, to convince them of the country's economic potential.
"At present, some workers in certain fields are already being paid more than 400 baht a day, but not in every province. We will look into this matter and expect to see the minimum daily wage go up to about 400 baht before the New Year, or by November-December," said the prime minister.
The current minimum daily wage ranges from 328 to 354 baht, depending on the province.
Mr Srettha admitted it would be difficult to implement the 20-baht flat electric train fare policy in Bangkok in just three months. The government had been in talks abut this with legal experts and the relevant agencies. The process of fully implementing the policy was arduous, but the government had started working towards that goal, he said.
Mr Srettha also said he had talked to the new director-general of the Revenue Department about land and house taxes, inheritance and other taxes to reduce tax inequality.
He said those who invest in other countries and bring home revenue must also be taxed, starting Jan .
Thailand's revenue departments has released new guidelines which will see all income from abroad taxed as personal income tax regardless of whether it was earned income or savings.
A senior official at the Ministry of Finance confirmed a document released by the revenue department over the weekend was accurate.
According to the document, "…those that have earnings from occupation or business abroad or wealth that is located abroad…and has brought these assets into Thailand…must factor this into their personal income tax for the year."
The program will begin January 1, 2024 and apply only to tax residents in Thailand meaning tourists and short term workers will be exempt. Also exempt will be those who have been taxed in a foreign country that has a standing Double Tax Agreement with Thailand.
The new Thailand Prime Minister Srettha Thavisin said he does not agree with recreational cannabis use and sales while in a recent interview with a prominent Thai media outlet.
PM Srettha told popular Thai media outlet The Standard his opinion on Friday afternoon (September 15th) when a reporter asked if he agreed with the current "free" marijuana cannabis policy. The reporter was referring to the decriminalization of cannabis in June of 2022 which has since seen thousands of dispensaries, cafes, and marijuana shops open across Thailand, especially in tourist areas like Phuket and Pattaya. The plan was spearheaded by now Deputy Prime Minister and Interior Minister Anutin Charnvirakul, the leader of the Bhumjaithai party. Anutin's original plan was to pass regulation and laws around the use of the plant but this has been held up since by furious debate amongst politicians, many with polar opposite views around cannabis. Completely opposite views, like those of some who support full recreational use and those who are calling for the plant to be recriminalized, have led to intense and sometimes emotional arguments and as a result the plant remains in a grey status legally, but dispensaries and cafes keep opening around the country leading many to question what the next step is, with the sector estimated at 1.2 billion Baht in the near future and continued growth.
Srettha said in response to the reporter asking for his views "Cannabis being appropriate and beneficial for medical use has become very clear and we have to be fair to the Bhumjaithai Party leader who has now become my Deputy Prime Minister and is also the Interior Minister, Anutin Charnvirakul. He has never talked about his cannabis policy with me and has never asked me to help with it. The Bhumjaithai Party as a whole has never talked about this with me too. However, we fully respect each other."
The reporter also added that the legal cannabis policy was the main policy of the Bhumjaithai party but brought up the fact that many people were against it for a variety of reasons, including concern of the effect of the plant on youth. Srettha stated he did not support the use of marijuana for youth.
Srettha added that illegal drugs are one of the main problems of Thailand and less people are talking about illegal drug problems. Meanwhile, in rural provinces, illegal drugs are one of the main problems along with the cost of living Srettha said. TPN notes that methamphetamine, and not marijuana, was the major issue pointed to by most law enforcement as causing issues, although some politicians and individuals have claimed that cannabis could be a gateway drug to harder and more problematic drugs and that is why it should be banned for recreational use.
Srettha has said he does not agree with recreational cannabis and his government policy will be to pursue medical use only. How this happens with an estimated 14,000 and growing dispensaries open in Thailand now and a growing tourism market for cannabis is anyone's guess.
This of course brings up the question of what exactly "medical use" of cannabis is, with some supporters claiming that using cannabis for stress, high blood pressure, back pain, headaches, insomnia, anxiety, and other fairly minor health issues would be a valid medical reason.
For now, the Thai cannabis industry and users can only wait and see what will happen in the future. One thing is certain, the new Thai government has vowed not to reclassify cannabis as an illegal narcotic again and bring back strict jail time and fines for use, so it remains uncertain how they will regulate the industry while supposedly preventing recreational use.
Airline price war unlikely amid high operational costs
Passengers check in for flights at Don Mueang Airport. (File Photo)
Airlines in Thailand are not expected to start another price war in the near future, while the Civil Aviation Authority of Thailand (CAAT) plans to maintain ceiling ticket prices despite higher operational costs.
Speaking at a seminar held by the Airlines Association of Thailand (AAT) and CAAT this week, Suttipong Kongpool, the CAAT director, said the jet fuel price, which normally makes up 30-40% of operational costs, would not surge above the baseline of US$120 per barrel in the short term.
This means the ceiling price regulated by the authority would remain the same for at least three years, he said.
According to CAAT regulations, low-cost airfares are capped at 9.4 baht per kilometre, while full-service airfares have a ceiling of 13.0 baht per km.
Even during the pandemic when fuel prices spiked to $170-180, the authority did not raise the price ceiling, said Mr Suttipong.
He said CAAT will not set a minimum price as lower airfares should benefit passengers, especially those who book tickets in advance.
There is a small chance airlines will compete on low fares, triggering another price war as happened in 2019, which resulted in an inappropriate revenue level based on the large passenger volume, said Mr Suttipong.
After airlines were stung by the pandemic, a price war is unsustainable for their businesses and the aviation ecosystem, he said.
Mr Suttipong, centre left, and Mr Puttipong, centre right, at a seminar held by the CAAT and the Airlines Association of Thailand to discuss airfare structure and pricing regulations with the public.
At the seminar on airfares, CAAT revealed booking data for a flight from Bangkok's Don Mueang airport to Phuket on May 19, 2023, for which 32.8% of passengers paid less than 1,000 baht, while 37.9% paid between 1,001 and 1,500 baht.
Only 0.8% of passengers bought the ticket at a rate of 3,501 to 4,000 baht, as airlines usually set their fares based on dynamic pricing, which enables early birds to grab the lowest prices first before gradually increasing the price when more seats are sold.
AAT president Puttipong Prasarttong-Osoth said it would take at least a 70-80% load factor for airlines to cover all costs and earn a profit.
The association hopes the government will lower the jet fuel excise tax rate from 4.726 baht per litre to an appropriate price as the tax increases airlines' expenses by 20%.
Some airlines in Thailand are offering a pay-to-fly scheme to recruit pilots wanting to obtain a licence for specific types of aircraft.
Mr Suttipong said this is normal practice for airlines to pass on hefty training costs to pilots, instead of absorbing the expense on their own.
Mr Puttipong, also president of Bangkok Airways, said the training cost for each pilot starts at 2.5 million baht.
He said Bangkok Airways will not use this scheme with its pilots. However, other airlines that plan to change their fleet types might have to consider this method because it would be expensive to absorb the training costs for all pilots, said Mr Puttipong.
Chiang Mai Airport is set to table its expansion proposal to Prime MinisterSrettha Thavisin during his scheduled visit this weekend. The airport's director, Wijit Kaewsaitiam, revealed that the Thai Cement Manufacturers Association (TCMA) is set to spearhead the construction of the terminal's first phase.
The extension plan is aimed at significantly increasing the airport's capacity, allowing it to accommodate over 16.5 million travellers annually, a huge leap from the current eight million. The airport also intends to ramp up its flight operations to 30 flights per hour, effectively doubling its existing capacity.
Wijit also noted that the airport's operating hours would be extended to operate 24 hours a day. This is to facilitate a higher frequency of international flights, especially those originating from Europe.
"The terminal project is aligned with the strategic plan of the Airports of Thailand and Chiang Mai's provincial development plan."
The first phase of the terminal will take approximately three years to complete and is expected to commence operations in 2029. Additionally, there are considerations for the construction of another airport in the province.
Prime Minister Srettha's visit to Chiang Mai is scheduled for September 15-17, following his tours of the North East and the South.
On Sunday, September 17, he is expected to engage with locals living in tambon Mae Hia of Muang district in Chiang Mai. This area lies adjacent to the airport and will be affected by the introduction of night flights. Discussions with executives from Chiang Mai Airport are also on his itinerary.
Two weeks ago the 61 year old prime minister made known his plan to revitalise airports in secondary cities, which has been warmly received by tourism operators in Nakhon Ratchasima. The airport revitalisation proposal, aimed at driving up tourist arrivals and stimulating the economy, was announced last month. Read more about the story HERE.
From closing the kingdom's biggest mass murder case to rescuing trapped Thai nationals abroad to leading delegations to foreign countries as well as rooting out corruption within the Royal Thai Police, General Surachate Hakparn has an impressive track record as he seeks the top job.
General Surachate Hakparn who is also known in Thailand as 'Big Joke' is in the running to become the country's next National Police Chief with the incoming government asking contenders to submit their vision for the role in the last week. It follows a reversal of course announced at the end of August when the outgoing government decided to leave the appointment for the new government of Prime Minister Srettha Thavisin.
Thailand's favourite top cop, Police General Surachate Hakparn, affectionately known as Big Joke, has been to the fore of countless newspaper reports over the past decade or so in a multitude of roles.
He is among the shortlist of top police officers who are in the running to become the 14th National Police Commissioner.
General Surachate Hapkarn or 'Big Joke' is on a shortlist for the role and has been asked to submit his vision in writing to the Police Commission
On Friday last week, General Surachate revealed that he is one of the candidates for the position and said he submitted a four-page outline of his vision for the role in a selection process that is being overseen by the outgoing Police Chief General Damrongsak Kittiprapas.
This is understood to have followed a decision on August 25th last by the Police Commission chaired by then outgoing Prime Minister Prayut Chan Ocha which decided to postpone the appointment of a new National Police Chief.
It was reported at the time that Police General Torsak Sukwimon, the current Technology Crime Suppression Division (TCSD) boss, was the leading candidate for the top job.
The decision to postpone the appointment was made in a spirit of good governance and respect towards the incoming cabinet which was sworn in on September 5th.
Top cop says his vision for the role revolves around protecting the Thai public and helping to restore faith and confidence in the national police force
In a brief statement afterwards, then Prime Minister Prayut, through a spokesman for the Royal Thai Police, Police Lieutenant General Achayon Kraithong, confirmed that the process of appointing a new police commissioner had been postponed until the appointment of the incoming government.
It is understood that Police General Torsak will also be a contender for the role of National Police Chief, which will be considered and decided on by the new government.
Commenting last week on his proposed submission to the selection process, General Surachate said his vision would revolve around the mission to keep the Thai people safe and to encourage faith in the Royal Thai Police.
The country's police force has seen its reputation damaged in recent years with shocking revelations in which officers have been arrested on corruption and indeed also on murder charges.
The deputy police chief has been involved in several cases which have seen charges brought against senior officers in the force including a case last year where charges were recommended against the former Provincial Police Chief of Narathiwat province.
Crackdowns on call centre scams and loan sharks
General Surchate or 'Big Joke' last week particularly highlighted his role as a police officer in combating the twin threats of the rampant excesses of call centre gangs and informal lenders or loan sharks who prey on the public as an example of activity that needs to be suppressed.
He said that these wrongdoers were inflicting a lot of hardship and suffering on the public and would be a key target for him if he is selected for the new role.
The veteran senior police officer, who has emerged as a point man for significant cases over the last 12 months under General Damiransuk, found his police career controversially sidelined in April 2019 when he was removed overnight as the Head of the Immigration Bureau.
General Surachate was subsequently moved to a role at the Prime Minister's Office, only to return less than two years later in March 2021, assigned to the office of the National Commissioner at Royal Thai Police Headquarters.
Controversial removal of Big Joke overnight from his dream job as Immigration Bureau Chief in 2019 leaves questions that have never been fully answered
Since then, the top cop has played a leading role in breaking significant cases and assisting the government in improving security for foreign tourists as well as directing the Kingdom's fight against human trafficking.
The deputy police chief is the leader of a task force involved in coordinating police activities in this matter across the country.
General Surachate also plays a key role in liaising with external police forces in the United States and China while in recent times, he has visited Brussels to brief the European Union on Thailand's efforts to rein in human trafficking.
In January 2022, he led a delegation to outline Thailand's campaign against the use of trafficked migrant labour on fisheries vessels.
This campaign won the country significant praise from both European and US political leaders.
In April 2022, General Surachate led another task force seeking to rescue 3,000 Thai citizens trapped in Cambodia by cybercrime cartels.
This resulted in a police operation in which he was subsequently critical of the performance of the Cambodian police.
Determination to rescue trapped Thai nationals in Cambodia working for scam gangs in April 2022 left him less than impressed with the Cambodian Police
General Surachate, in recent interviews with the media including the New York Times, suggested that he believed the gangs were tipped off by unknown sources leading to his campaign only rescuing 100 or so Thai nationals from the country.
Over the last two years, 'Big Joke' whose nickname relates to his favourite breakfast cereal while a trainee police officer, has emerged as a figure that the Thai public trusts.
A case in point is the suspected serial murderer Sararat Rangsiwutthaporn who became known as Am Cyanide, who is believed to have murdered at least 14 people in a campaign of poisoning over an 8-year period in a case that was only finalised by a team led by General Surachjate in June this year.
High-profile cases closed by the country's top policeman including Thailand's biggest serial murder probe this year linked with the notorious Am Cyanide
The case emerged when members of the public came forward pleading for his help in exposing their suspicions about the woman at the centre of what looks like being recorded as Thailand's biggest serial murder investigation.
General Surachate has also been a key mover of a complaint filed with the National Anti-Corruption Commission related to a database system installed within the Immigration Bureau which saw former National Police Chief, General Chakthip Chaijinda, accused of corruption at the end of July this year.
Controversy arose over the database system's procurement during Big Joke's time as Immigration Bureau Chief in 2019 and some analysts believe this may have been linked to his removal from that role at the time.
The top cop has consistently claimed that he is impervious to corruption.
Indeed, General Surachate first made a name for himself as a senior police officer in Bangkok, often coming to the assistance of foreigners in the Thai capital who found themselves the victims of shakedowns by criminal or rogue police elements.
THE NEW Cabinet approved seven key measures at its first meeting this morning (Sep. 13) and among them are free visas for visitors from China and Kazakhstan, slashing the electricity rate from 4.45 baht to 4.10 baht a unit plus amending the constitution with public participation, Thai Rath newspaper said.
A statement issued by Prime Minister-cum-Finance Minister Srettha Thavisin said the following measures had been approved:
1) The government will organise a royal ceremony in honour of His Majesty King Maha Vajiralongkorn's sixth cycle, 72nd birthday next year;
2) To resolve the problem of differences over the 2017 constitution Deputy Prime Minister-cum-Commerce Minister Bhumtham Wechayachai has been assigned to take charge of appointing a "referendum study committee" based on the Constitutional Court's guidelines to allow the people to join in designing democracy;
3) Free visas approved for visitors from China and Kazakhstan from Sep. 25, 2023 to Feb. 29, 2024 with this being a temporary exemption;
4) A national Soft Power Strategy Committee is being established in keeping with a campaign pledge to boost the potential of the Thai people thus increasing their income and spreading opportunities to all Thais;
5) A three-year debt moratorium for farmers and small business entrepreneurs;
6) Pay civil servants twice a month from Jan. 1, 2024 onwards;
7) Reduce the electricity rate from 4.45 baht to 4.10 baht a unit from this month's billing cycle onwards and reduce the pump price of diesel to less than 30 baht a litre starting Sep. 20, 2023.
CAPTIONS:
Prime Minister Srettha Thavisin. Top photo: Matichon, Front Page photo: Thai Rath
Insert: Deputy Prime Minister-cum-Commerce Minister Bhumtham Wechayachai. Photo: Matichon
Thai Airways eyeing up to 95 Aircraft from both Boeing and Airbus
Thai Airways, the flagship carrier of the Kingdom of Thailand, is reportedly engaged in discussions with two aerospace industry giants, Airbus and Boeing, regarding the acquisition of more than 90 new aircraft. While it remains premature to speculate about the airline's final choice, the order will likely encompass a combination of both Airbus and Boeing aircraft.
The strategic move by Thai Airways underscores its intention to capitalize on the burgeoning growth in air travel within the region. Notably, this potential order for 95 aircraft represents a significant initiative, especially in light of the air travel landscape during the turbulent years of 2020 and 2021.
However, it is essential to recognize that despite this ambitious step, Thai Airways is currently navigating through a financial reformation process, including staff and debt restructuring, while operating under bankruptcy-protected debt restructuring. Although previous reports suggested an intent to acquire 30 aircraft, Thai executives now perceive the need for a fleet expansion consisting of 95 narrow-body and wide-body jets, aligning with contemporary macroeconomic trends.
As per Reuters, Thai Airways' planned procurement encompasses up to 15 narrow-body jets and 80 wide-body jets, constituting the most substantial fleet expansion in decades for the airline. This development has raised questions about the potential for Thai Airways to recapture its former glory.
In June, Chai Eamsiri, the Chief Executive Officer of Thai Airways, announced the airline's intention to finalize a deal for 30 wide-body jets by the end of the current year. However, this plan remains subject to adjustments as circumstances evolve. Thai Airways aims to leverage the post-pandemic rebound to recover financially and revitalize its reputation and standing within the industry.
The airline has grappled with financial difficulties since the late 2010s, primarily due to managerial inefficiencies. Presently, it is seizing the opportunity presented by the rebound in air travel to embark on a path to recovery and improved performance.
In 2021, Thai Airways initiated a debt restructuring process involving debts totaling 400 billion baht, equivalent to $11.17 billion. The airline intends to transfer 20 Airbus A320 aircraft from its subsidiary, Thai Smile, to Thai Airways as part of the effort of this restructuring. Furthermore, the airline has secured slots for the delivery of 12 new Airbus A321neo aircraft, scheduled for receipt between 2025 and 2026.
Thai Airways currently operates a diverse fleet comprising both legacy and modern airliners. This mixed fleet has contributed to consistency-related complaints from passengers. The airline's inventory includes Boeing 787s, Airbus A350s, Boeing 777-300ERs, as well as older Boeing 777-200ERs and Airbus A330s.
Despite the ongoing complexities of debt restructuring, Thai Airways achieved a net profit of 2.2 billion baht, equivalent to $61.8 million, in the current year's second quarter, marking a significant turnaround from the 3 billion baht loss incurred in 2022, according to Reuters.
With its financial outlook showing signs of improvement, Thai Airways aspires to ascend to new heights and regain its stature as one of the world's premier airlines.
The Airports of Thailand (AoT) is poised to embark on the soft launch of Satellite 1 (SAT-1), a cutting-edge terminal situated within Suvarnabhumi International Airport, scheduled for September 28th. This undertaking comes on the heels of an extensive trial period, wherein the operational capabilities of SAT-1 were rigorously tested with the involvement of 180 simulated passengers and their accompanying luggage.
The trial process was conducted in collaboration with Thai Airways, which generously provided its cabin crew and aircraft to facilitate the procedure. Additionally, key authorities such as Immigration Division 2, the Cargo Clearance Customs Bureau, Aeronautical Radio of Thailand, and Bangkok Aviation Fuel Services meticulously observed and scrutinized the trial's various facets, as noted by Mr. Kittipong Kittikachorn, Director of Suvarnabhumi.
It is imperative to underscore that this comprehensive trial encompassed a wide spectrum of activities, including aircraft operations, the seamless flow of arriving and departing passengers, the efficient handling of transfer passengers, the optimization of baggage handling systems, and the coordination of cargo operations.
The upcoming trials, slated for September 20th, will be executed by Thai AirAsia X and Worldwide Flight Services Bangkok Air Ground Handling Co Ltd, followed by a trial on September 20th, spearheaded by Thai Vietjet, specifically tailored to assess the passenger experience for departing flights during nighttime hours, as per Mr. Kittipong's announcements.
During the soft-opening phase, which spans from September 28th to October 28th, SAT-1 will be exclusively accessible to three prominent airlines: Thai AirAsia X, VietJet Air, and Emirates. The overarching objective of this endeavor is to alleviate congestion woes at the primary terminal, with SAT-1 anticipated to achieve full operational status by December of the current year. Notably, SAT-1 is anticipated to accommodate a staggering 15 million passengers annually, thereby enabling Suvarnabhumi Airport to expand its capacity to a remarkable 60 million passengers per annum, reflecting a substantial 33% increase, as emphasized by Mr. Kittipong.
SAT-1, a state-of-the-art terminal, boasts an impressive array of facilities, including 28 contact gates, of which eight have been specifically designed to accommodate Code F aircraft, such as the double-decker A380 superjumbo jets, while the remaining 20 gates are tailored to cater to Code E aircraft, exemplified by Boeing B747s. Furthermore, this four-story edifice encompasses an expansive total floor area of 216,000 square meters, with two subterranean levels housing the Automated People Mover (APM) train system, among other pivotal components.
The APM train system, operating at a maximum speed of 80 kilometers per hour, is poised to seamlessly connect SAT-1 and the existing passenger terminal. Remarkably, each train is capable of accommodating 210 passengers per trip, translating to an impressive throughput of approximately 6,000 passengers per hour, with each journey consuming a mere three minutes.
With the inauguration of SAT-1, international passengers will be relieved of the need to rely on shuttle buses to access their respective gates, marking a significant enhancement in overall airport efficiency and passenger experience.
The Tourism Authority of Thailand (TAT) is shifting its focus towards promoting Thailand as a "sustainable destination" committed to environmental protection, according to TAT Governor Thapanee Kiatphaiboon.
The agency aims to educate foreign tourists about the country's efforts to align with global sustainability trends. Thapanee stressed that Thailand seeks to become a high-value and sustainable tourism destination while addressing environmental challenges such as wildfires in northern Thailand, which impacted tourism for extended periods.
The TAT's strategy, known as "Sustainably Now," aims to transform the tourism sector by embracing sustainable tourism goals (STGs) aligned with the United Nations' Sustainable Development Goals. The agency also introduced the Sustainable Tourism Acceleration Rating (STAR) project, awarding stars to operators improving their sustainability practices. The goal is to have at least 85% of participating tourism operators achieve three to five stars by 2025.
Meaningful travel experiences have been identified as a top priority for foreign tourists visiting Thailand, as revealed by a recent survey.
The TAT's efforts extend to partnerships, digital technology adoption, and niche markets, all aimed at enhancing Thailand's tourism industry while prioritizing sustainability. A pilot project in five provinces focuses on encouraging tourism businesses to offer environmentally friendly services.
The New Minister of the Digital Economy and Society Mr. Prasert Chantararuangthong told TPN media this week. "Many Thai people are benefitting from Facebook more than online scammers. There are more than 45 million Facebook users in Thailand. Many run small businesses and use Facebook live to market their products and services. It is the primary communication tool for many businesses as well."
"Therefore, any plan to shutdown Facebook in Thailand is very sensitive. We need to be very careful about how we go about to solve online scams and problems. Closing Facebook is not the real solution to get rid of these online scammers. We will discuss the problem further with Facebook executives from Singapore soon for better solutions." Prasert concluded.
