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[webfact]

An airplane flying away from Phuket after taking off from the island’s airport. Photo:  [email protected] (CC BY 2.0)

 

by TNR Staff

 

THE Thai Airline Association said today (Dec. 26) that seven airlines are going to cut airfares by up to 20% from January 2023 after the government reduced the excise tax on jet fuel to only 20 satang per litre to stimulate tourism, TV Channel 7 said.

 

Mr. Puttipong Prasarttong-Osoth, president of this association, said excise tax on jet fuel was cut to 20 satang per litre from 4.726 baht for six months starting January.

 

All seven airlines will be jointly organising a special promotion with all air fares to be gradually reduced by up to 20% depending on how each airline arranges it.

 

Full story: https://thainewsroom.com/2022/12/26/7-airlines-to-slash-airfares-by-up-to-20-from-jan-2023/

 

-- © Copyright  THAI NEWSROOM 2022-12-27

 

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[alyx]

555 That is a good one

Mind you it only applies to low cost airlines

[Straight8]

easily fixed when idiots stop paying 3 times more than pre-pandemic days. Even the cost of oil has returned to under $80 so airline can't keeping using that card for these ridiculous increases.

 

Other than those who absolutely "must" fly, people should just holiday locally until this ***** returns to normal

[Muhendis]

Airlines have been trying to recoup their losses from the Covid restrictions. My perception is that prices went up by 50% then so a reduction of 20% still leaves the airlines 30% better off than they were pre-covid.

[Boomer6969]

4 hours ago, Muhendis said:

Airlines have been trying to recoup their losses from the Covid restrictions. My perception is that prices went up by 50% then so a reduction of 20% still leaves the airlines 30% better off than they were pre-covid.

Dunno how you can say that. These are the fares I was used to before Covid, even somewhat lower. And that's a shame, governments should step in and heavily tax,

[Pib]

 

 

Even though the govt reduced the fuel excise tax "immediately" on 1 Jan the airlines are only going to start reducing their airfares "gradually"  as they see fit which means foot dragging by the airlines....basically the excise tax cut staying in the airlines pockets as additional profit....like a taxpayer subsidy to the airlines.

 

Quote:

All seven airlines will be jointly organising a special promotion with all air fares to be gradually reduced by up to 20% depending on how each airline arranges it. 

End quote.

[oslooskar]

I have decided, for health reasons, to bite-the-bullet and pay extra for business class if I ever fly back to the States again for a visit. I rarely fly anymore, so I'm not going to worry about airfares.

[RichardColeman]

Does not apply but my newly booked Thai to Heathrow was £850 - up like £250-300. Putting up anything and then bringing it down and putting it as a promotion is just a TOPS style con of putting up your favourite soft drink 3 baht and the putting it back to the original price as promotion, Land of scams

[AhFarangJa]

This scam is just the same as the taxman in U.K. at budget time. If tax on fuel goes up, it is always at midnight the same day. However, if, on the rare occasion they lower it, then it is always a month or two months ahead. 

Reading this article, all that has happened is that the airlines are being given a nice little earner to recoup Covidiocy losses................................

4 hours ago, webfact said:

All seven airlines will be jointly organising a special promotion with all air fares to be gradually reduced by up to 20% depending on how each airline arranges it.

Gradually reduced by up to 20%................As Richard posted above, they have increased fares by a higher percentage, to make it look like a big drop in the future.

[4MyEgo]

I have always found that by booking a seat at least 6 months in advance, preferably on a promotion can save you a heck of a lot.

 

If no promotion is available, you still get a great deal because each seat has a price tag unbeknown to most travellers, so the later you book, the higher the price as the more seats are booked.

 

Last flight for me 2022 when I checked a week before I flew out was double the price, now times that by 4 people flying and it does add up.

 

If you can't book early for whatever reason, then you just have to pay the price.

[chricha]

Unfortunately I am paying a high price to fly on the 28th. Wanted to book earlier but couldn't.

In the past the sweet spot for late bookers is 2-4 weeks out when the airlines on-sell to the agents to fill the planes at cheap prices - but not this year!

Flew economy direct with Thai for less than $AUD800 in May/June.

Booked last week with a 15 hour journey via Manila from Sydney premium economy at $2550 - $2100 for economy. 

I'm very tall so the current "honey they struck the plane seat" trend means the airlines are now charging $US75 for aisle seats on the MNL-BKK leg!

Wish I could afford business but it's overkill. I don't need the amenities - just a 33" not 29" seat!

Comfortable long distance travel is now only the domain of the rich and cattle class is only for short rubber people ????

Edited December 27, 2022 by chricha
supplement

[Mywayboy]

Oh sorry you wanted a seat in that price.

Sorry no luggage included in the price etc etc,etc.

[KhunLA]

2 minutes ago, chricha said:

Unfortunately I am paying a high price to fly on the 28th. Flew economy direct with Thai for less than $AUD800 in May/June.

Booked last week with a 15 hour journey via Manila from Sydney premium economy at $2550 - $2100 for economy. 

I'm very tall so the current "honey they struck the plane seat" trend means the airlines are now charging $US75 for aisle seats on the MNL-BKK leg!

Wish I could afford business but it's overkill. I don't need the amenities - just a 33" not 29" seat!

Comfortable long distance travel is now only the domain of the rich and cattle class is only for short people ????

There is nothing in TH worth seeing or doing that I'd pay high airfares for to endure sitting in the back of the bus on any long trip. 

[Bim Smith]

But the tourist tax remains? Makes perfect sense.

[ezzra]

I'll believe it when I see it, so far fares have been going up and up owing to all sorts of excuses, and once fare is is up very difficult to bring it it down...

[radiochaser]

48 minutes ago, oslooskar said:

I have decided, for health reasons, to bite-the-bullet and pay extra for business class if I ever fly back to the States again for a visit. I rarely fly anymore, so I'm not going to worry about airfares.

Much more comfortable than economy plus.  
Join the different airline groups such as Star Alliance and others.  Search their websites for the lowest fare.  

[andygrr]

The seven airlines are, Bangkok Airways, Thai AirAsia, Thai AirAsia X, Thai Smile, Nok Air, Thai Lion Air and Thai VietJet. So, it will only affect domestic flights and flights to neighboring countries.

[sandyf]

2 hours ago, Muhendis said:

Airlines have been trying to recoup their losses from the Covid restrictions. My perception is that prices went up by 50% then so a reduction of 20% still leaves the airlines 30% better off than they were pre-covid.

That is garbage, I doubt the prices on the airlines concerned went up 10%, certainly not anywhere near 50%. The prices on budgets can vary for all sort of reasons so you have to be specific when making outrageous claims.

"The seven airlines participating in this promotion are Bangkok Airways, Thai AirAsia, Thai AirAsia X, Thai Smile, Nok Air, Thai Lion Air and Thai VietJet."

 

Very unlikely the 20% will make much difference, maybe some saving if you fly during unsociable hours.

[MRToMRT]

1 hour ago, Boomer6969 said:

Dunno how you can say that. These are the fares I was used to before Covid, even somewhat lower. And that's a shame, governments should step in and heavily tax, the planet is burning. 

Same thing occurred to me immediately, internationals have already reduced their fares for 2023 travel vis a vis 2022. My return ticket to europe's return leg was significantly cheaper than my inbound leg (to Thailand) a few months ago.

[Reigntax]

2 hours ago, Muhendis said:

Airlines have been trying to recoup their losses from the Covid restrictions. My perception is that prices went up by 50% then so a reduction of 20% still leaves the airlines 30% better off than they were pre-covid.

Wouldn’t that be still 20% better off?

because the 20% discount also applies to the 50% increase as well.

Edited December 27, 2022 by Reigntax

[save the frogs]

32 minutes ago, Boomer6969 said:

So you didn't get it, really? That these 4 feet of snow are due to the so called "global warming" which most learned people would now call "climate change". But no worries mate, keep your head in the sand. That's how emus get buggered.

there are some organizations who would like to put restrictions on travel at some point for climate change.

such as ... you're only allowed to take an international flight once every 3 years.

not sure how influential they will be persuading govts.

not sure people will accept it. or if the travel industry will fight it.

maybe we should travel less and stay longer in one place when we do travel.

 

hopefully in the future they will invent airplanes that run on coca-cola instead of fuel. 

we seem to have an abundance of coca-cola and maybe we'll find more on mars.

 

ps .. .there are deals to be had now ... there were european cruises on sale for 26$/night a few weeks back.

Edited December 27, 2022 by save the frogs

[superal]

10 minutes ago, sandyf said:

That is garbage, I doubt the prices on the airlines concerned went up 10%, certainly not anywhere near 50%. The prices on budgets can vary for all sort of reasons so you have to be specific when making outrageous claims.

"The seven airlines participating in this promotion are Bangkok Airways, Thai AirAsia, Thai AirAsia X, Thai Smile, Nok Air, Thai Lion Air and Thai VietJet."

 

Very unlikely the 20% will make much difference, maybe some saving if you fly during unsociable hours.

Do any of the 7 fly outside of Asia ? certainly not to the UK .  Also not forgetting that B.A. and Scoot Air have stopped flying the direct service from the UK to Thailand and EVA Air is now flying at a reduced service .  In general all flight companies have raised their prices , especially nearer to the departure date , in a similar fashion to that of a cartel . 

[Muhendis]

19 minutes ago, Reigntax said:

Wouldn’t that be still 20% better off?

because the 20% discount also applies to the 50% increase as well.

You're right but it would probably depend on how the airline decides to (gradually) do it. 

[Cake Monster]

5 hours ago, alyx said:

555 That is a good one

Mind you it only applies to low cost airlines

Wot !

It doesnt apply to the Russian Airlines

[mikebell]

42 minutes ago, andygrr said:

Bangkok Airways

Damn - booked Utapao - Samui last week for travel Jan 18th!

[sandyf]

13 minutes ago, superal said:

Do any of the 7 fly outside of Asia ? certainly not to the UK .  Also not forgetting that B.A. and Scoot Air have stopped flying the direct service from the UK to Thailand and EVA Air is now flying at a reduced service .  In general all flight companies have raised their prices , especially nearer to the departure date , in a similar fashion to that of a cartel . 

Quite. The covid situation came at a significant cost to the airlines with precautions, refunds etc alongside the increase in fuel. It is not any surprise they will try and recoup some of the loss.

The OP however relates to a reduction in fuel duty here in Thailand, something many choose to ignore.

[sandyf]

36 minutes ago, Reigntax said:

Wouldn’t that be still 20% better off?

because the 20% discount also applies to the 50% increase as well.

You mean that fictional 50%.

[Reigntax]

8 minutes ago, sandyf said:

You mean that fictional 50%.

Yes, the fiction of airlines giving discounts. I’m sure any benefit in tax reductions will assist greatly in increasing the bonus’s of upper management.

[new2here]

Clearly “crude” prices globally have fallen off their covid peak levels… however, carriers tend to watch and use the Platts fuel index as that’s specific to their commodity- Jet-A/A1

https://www.iata.org/en/publications/economics/fuel-monitor/

 

So, on that front, there’s a case to be made for downward pressure on fares..

 

But…

 

I think the other major element that’s still keeping upward pressure on fares is “supply” … with load factors in some markets in the upper 80s plus, carriers see demand and their inability to add capacity is somewhat like leaving money on the table so to speak.  I suspect that carriers do want to add capacity, but most are also acutely aware they adding capacity can drive down fares IF load factors don’t remain high to support the incremental costs.

 

but adding capacity for some is also problematic as planes they put into storage can take weeks to re-certify for revenue service … and their crew and staff.. many who were furloughed or laid off, now have to be recalled… and like in many other fields, some of these previously employed airline staff, have found new jobs and careers, and don’t want to go back ..:

 

so they have to hire “off-the-street” and for many positions, there’s a lengthy licensing and training period required before they are ready 

 

In totality, I DO think that the cut of the excise tax will help, but that’s just one piece of the pricing equation and in the longer term, not really going to have a MAJOR impact on bottom line ticket prices. 

 

 

[sandyf]

9 minutes ago, Reigntax said:

Yes, the fiction of airlines giving discounts. I’m sure any benefit in tax reductions will assist greatly in increasing the bonus’s of upper management.

"also applies to the 50% increase as well."

Why the compulsion to distort the context?