Measures out to cut costs of airlines

[webfact]

Measures out to cut costs of airlines

By THE NATION

 

 

The Cabinet today (March 17) approved the relief package proposed by the Transport Ministry for airlines reeling from the impact of Covid-19, said Transport Minister Saksayam Chidchob.

 

Topping the list is a 50 per cent reduction in landing and parking fees for all Thai and foreign airliners from April 1 to December 31.

 

Another is an extension of the reduction in jet fuel excise to December 31 from the original expiry date of September 30.

 

Airports of Thailand president Nitinai Sirismatthakarn said passenger number at AOT's six airport last month dropped 27.7 per cent year on year. During March 1 to 16, the number fell 49 per cent on average and even plunged to 60 per cent on some days.

 

Source: https://www.nationthailand.com/business/30384269

 

-- © Copyright The Nation Thailand 2020-03-19

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[Chang_paarp]

Looks like Thai will lose less money with this. Less fuel costs, less staff costs, less airport fees.

[djayz]

But will the airlines, which are also hurting, pass these savings on to their passengers? 

[RichardColeman]

32 minutes ago, Chang_paarp said:

Looks like Thai will lose less money with this. Less fuel costs, less staff costs, less airport fees.

If you were booking to go to the UK quickly , they were not accepting more bookings on their website for Wed, Thurs Friday this week - I'll assume full up, or reduced spacing on the flight (not that Thais think that way).

 

Anyhow next flight was near £1,000 for simple return to UK on saturday, before falling back to normal on monday to £500. 

 

I think give it a week and they'll stop flying to London - since they will be flying back without anyone on the plane as UK warned not to travel now

 

 

[J Town]

 I was really shocked when, out of morbid curiosity, I looked at how much my annual trip back to the states would cost. The price went UP almost 10%! Cruise line prices are less than half what they were a year ago.

[Iron Tongue]

4 hours ago, J Town said:

 I was really shocked when, out of morbid curiosity, I looked at how much my annual trip back to the states would cost. The price went UP almost 10%! Cruise line prices are less than half what they were a year ago.

10% more isn't much when flights have been reduced so drastically and most are empty on the return trip.

 

50% off a cruise isn't saving anything when liners have stopped sailing altogether.

[Somtamnication]

Oh Manitou, do not close airports until I arrive back home! 

[sometimewoodworker]

9 hours ago, djayz said:

But will the airlines, which are also hurting, pass these savings on to their passengers? 

What passengers?

 

Only those with a genuine need to travel and the terminally stupid will fly.

 

And what savings? Unless there are load factors of over 85%, even with reduced costs they are not making enough to cover overheads.

 

Cheap flights only make money for the airlines when they are regularly flying with high load factors, and enough flights to cover all the other expenses.

 

I would not be amazed to find that the low cost fares disappear for the next year or so.