Thailand gets aviation safety upgrade, airline shares jump

[webfact]

Thailand gets aviation safety upgrade, airline shares jump

Aukkarapon Niyomyat, Wirat Buranakanokthanasan

 

BANGKOK (Reuters) - The U.N. International Civil Aviation Organization has removed a red flag against Thailand over safety concerns, the Civil Aviation Authority of Thailand said on Monday, sending shares in Thai airlines sharply higher.

 

Thailand was downgraded in June 2015 after its regulator missed a deadline to resolve significant safety concerns, meaning that airlines in Thailand were unable to add further international routes, though they could continue to operate routine flights.

 

The Thai aviation authority said the ICAO had made the decision after a meeting on Friday. The Montreal-based U.N. agency was not immediately available for comment, but the red flag which appeared against Thailand on its website had disappeared.

 

“Although lifting the red flag is a significant turning point for her aviation industry, Thailand as well as CAAT need to carry on their missions to improve the aviation safety standards,” the CAAT said on its website.

 

CAAT director general Chula Sukmanop told a news conference the removal of the red flag would give Thai airlines a chance to start new flights to China, Japan and South Korea.

 

Shares in Thai Airways climbed nearly 8 percent on the news before falling back to trade at over 5 percent higher. Shares in Asia Aviation, which operates as Thai Air Asia, rose as much as 5 percent and later traded up nearly 4 percent. Shares in airport operator Airports of Thailand rose over 2 percent.

 

The biggest beneficiaries of the decision would be smaller carriers, such as Thai AirAsia X, NokScoot and Thai Lion, said Corrine Png, the CEO of Singapore-based transport research firm Crucial Perspective.

 

“The ICAO downgrade had seriously impeded these new entrants’ growth to lucrative markets such as Japan and South Korea,” she said. “These airlines can now grow more aggressively. This would, however, imply increased competition for Thai Airways when they expand.”

 

Chula said he expected Thailand would regain a Category One status from the U.S. Department of Transportation’s Federal Aviation Administration (FAA), which also downgraded Thailand in 2015. The FAA downgrade meant Thai carriers could not start new routes to the United States.

 

The CAAT said its aim was to be at “the world’s forefront” in safety and reach the global average in each safety category. Actions were still needed to address findings of an ICAO inspection in January 2015 and an audit in July, it said.

 

ICAO’s red flag was based on its audit of the regulatory body, rather than individual airlines. Some major Thai airlines, including Thai Airways, Bangkok Airways, Thai Lion and NokScoot, have passed the International Air Transport Association Operational Safety Audit, a benchmark for global safety management in airlines.

 

Aviation safety is particularly important for Thailand given that tourism accounts for around 12 percent of its economy, the second largest in Asia.

 

The countries which still have red flags against them are Djibouti, Eritrea, Haiti, Kyrgyzstan and Malawi, according to the ICAO list.

 

Additional reporting by Jamie Freed in Singapore, Writing by Matthew Tostevin; Editing by Nick Macfie

 

-- © Copyright Reuters 2017-10-09

[webfact]

Prayut says it’s a pride of the country for ICAO’s removal of red flag status

By Thai PBS

 

 

Prime Minister Gen Prayut Chan-o-cha expressed Today (Oct 9) satisfaction with the International Civil Aviation Organisation’s decision to remove the country’s red flag status saying it is the pride of the country.

 

At today’s press conference to announce the ICAO’s decision, the prime minister said “today will mark the Honour Day of the country that I would like to personally read the statement after the International Civil Aviation Organisation has removed the red flag status on the country after placing it on June 18, 2015.”

 

Also present at the press conference are Transport Minister Akom Termpittayapaisith, and Civil Aviation Authority director-general Chuka Sukmanop.

 

Full story: http://englishnews.thaipbs.or.th/prayut-says-pride-country-icaos-removal-red-flag-status/

 

-- © Copyright Thai PBS 2017-10-09

[taichiplanet]

and it is national what that it got a red flag in the first place?!

[Oziex1]

So he's just over the moon and bursting with pride over the fact they have finally improved their commitment to international safety standards.

 

Sure it's not that his shares have jumped up?

 

What will the Americans have to say on this issue?

[canopus1969]

45 minutes ago, taichiplanet said:

and it is national what that it got a red flag in the first place?!

Errr 'embarrassment'    ?

[rebo]

Maybe it's a pride for a 3rd world country.
For civilized countries taking care for its people and guests it's a matter of course.

[webfact]

ICAO's lifting of red flag a significant turning point for Thailand : PM

By   THE NATION 

 

Arun Mishra, left, regional director of International Civil Aviation Organisation (ICAO) Asia Pacific, join  hands with Prime Minister Prayut Chan-o-cha yesterday after the ICAO removed the red flag over  safety issues on Saturday.

 

THE THAI government said the country would regain confidence in her aviation standard, and Thai airlines are expected to add flights, after the UN International Civil Aviation Organisation (ICAO) removed a red flag against Thailand over safety concerns.

Thailand’s Prime Minister Prayut Chan-o-cha said that it was a pride of Thailand and a significant turning point for the country’s aviation industry after concerted efforts boosted confidence in Thai airlines and a plan for the nation as a regional aviation hub.

 

Thailand was downgraded in June 2015 after its regulator missed a deadline to fix significant safety concerns and 33 issues remained to be resolved. As a result, airlines were unable to add further international routes, though they could continue to operate routine flights. 

 

According to Prayut, the ICAO had made the decision after a meeting last Friday. 

 

So far, 18 airlines in the country have been improved to a sufficient standard and there are 10 more |airlines for further improve-|ment to the standard within |this December, he said.

 

The country’s Transport Minister Arkhom Termpittayapaisith said that, based on the ICAO in Asia-Pacific office, the red flag that appeared against Thailand on its website had disappeared. 

 

After this, Thailand’s Ministry of Transport will go ahead to solve two issues, including other insignificant matters for safety, and development of aviation personnel sufficient for working up to and maintaining the standard, he said.

 

“Lifting the red flag will allow Thai airlines to fly all routes where Thailand has aviation agreements. There was no limitations like earlier. Thai airlines are expected to add more potential routes,” he said.

 

Civil Aviation Authority of Thailand (CAAT)’s director-general Chula Sukmanop said that Thailand expects to regain a Category One status from the US Department of Transportation’s Federal Aviation Administration (FAA) on expectation to see the result in the first quarter of next year. The FAA also downgraded Thailand in 2015.

 

The list of nine, out of 11, airlines which were granted air operator’s certificates (AOCs) was sent to the ICAO for acknowledgement, he said, expressing confidence two more airlines would receive AOCs.

 

He said lifting the red flag would give more confidence to other regional auditors. CAAT will meet with the European Aviation Safety Agency (EASA) for discussion on ICAO’s removal of the red flag against Thailand and her improvements.

 

KTB Securities (Thailand)’s Senior Director Mongkol Puangpetra said that the Thai aviation industry’s outlook improved after the ICAO’s red-flag removal against Thailand, which could foster the Thai aviation industry to grow more.

 

Nok Air Plc is expected to gain most with more flights, he said. In the fourth quarter of this year, the airlines are expected to grow satisfactory as a result of more Chinese tourists.

 

Asia Plus Securities expects Thai Airways International Plc with its plans for more routes in Japan, South Korea and the United States to see the highest gain, followed by Nok Air which plans to expand its routes in Japan and South Korea.

 

AirAsia could also gain with passengers who travel by Thai AirAsia X which is expected to open new routes in South Korea and Japan.

 

Kasikorn Research Center also reported that the ICAO removal of the red flag will boost Thailand’s aviation revenue to the tune of achieving Bt278 billion by the end of this year and will achieve Bt294.5 billion in the year 2018 or up 5.5 per cent from this year.

 

Yesterday, share prices of aviation firms rose following the ICAO move but The Stock Exchange of Thailand (SET) Index closed lower at 1,692.22, dropping 3.75 points with a trade value of Bt47.92 billion.

 

Thai Airways International Plc closed at Bt19.10 per share yesterday, up 3.24 per cent from Friday. Asia Aviation closed at Bt6.70, up 3.06 per cent. Nok Airlines also closed at Bt3.60 per share, up 2.27 per cent from Friday. Bangkok Airways Plc’s share price ended at Bt18.80 per share, up 1.06 per cent from Friday.

 

Source: http://www.nationmultimedia.com/detail/Economy/30328885

 

-- © Copyright The Nation 2017-10-10

[Thian]

15 hours ago, webfact said:

The ICAO downgrade had seriously impeded these new entrants’ growth to lucrative markets such as Japan and South Korea,” she said. “These airlines can now grow more aggressively

Yes Yes, more rich people which can be scammed. 

 

Last weekend i ate in Arno's steakhouse in Emquartier, the place was full of japanese diners but NONE of the staff could speak a word english...555555  Thailand 4.0.

 

And worst of all, i got scammed with a mini hamburger instead of the big one which i ordered by pointing on the picture and letting my thai wife tell her that i wanted that one...of course i had to pay for the big one which i didn't get.

[Srikcir]

4 hours ago, webfact said:

As a result, airlines were unable to add further international routes, though they could continue to operate routine flights. 

Was Prayut proud that state-owned Thai Airlines continued to operate internationally for more than 2 years despite addressing "significant" safety concerns and 33 other unresolved issues?

Certainly shutting down the airlines from international flights would add urgency to address all the safety issues ASAP. But that would massively cut short foreign tourist revenues and slow economic growth. Better to risk safety of passengers than impugn the reputation of the government.

[Sir Swagman]

Is nonsense really. What it means is they have got the paperwork in order, so it all looks right. There is no actual physical monitoring of maintenance, training standards or operating procedures. Things will (with luck) stagger along as they have done. Same same and not different. The culture in this area does not lend itself to consistently safe procedures. The 'challenge and response' cockpit environment is mostly (if not totally) lacking. 

[Thakkar]

On 10/9/2017 at 3:44 PM, webfact said:

Prayut says it’s a pride of the country for ICAO’s removal of red flag status

Thai based airlines’ new advertising slogan: “Proud to be not sh!tty anymore!”