Civil Aviation Authority of Thailand Unveils Plans to Curb High Airfares

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File photo courtesy: Wikipedia

 

Amid rising concerns over exorbitant airfares during peak travel times, the Civil Aviation Authority of Thailand (CAAT) has announced measures to ensure affordable options, particularly during high-demand periods like the Songkran holiday. This initiative, directed by Deputy Prime Minister and Transport Minister Suriya Jungrungreangkit, aims to regulate fare structures for the benefit of passengers.

 

Central to the CAAT's strategy is the implementation of a price ceiling tied to flight distances. Specifically, for low-cost carriers, fares are capped at 9.40 Baht per kilometre, while full-service airlines are restricted to 13 Baht per kilometre. These regulations apply expressly to tickets purchased directly from airlines, ensuring transparency and fairness in pricing.

 

This price cap model is grounded in standards set by the International Civil Aviation Organization. According to the framework, a significant portion of the fare, approximately 25-33%, is allocated for fuel costs, with 20-31% covering flight operations and 8-16% earmarked for maintenance.

 

CAAT’s objective is clear: to deter airlines from inflating prices egregiously, which effectively puts a cap on excessive profit margins.

Beyond capping prices, CAAT has put forward a trio of primary strategies to align airfares with consumer expectations and market dynamics:

 

1. Boosting Supply: CAAT is collaborating with airlines, airport authorities, and air traffic control entities to increase the number of available flights during busy travel periods. The strategy includes expanding flight schedules, enlarging airline operational capacities, and upgrading maintenance facilities.

 

2. Regulatory Revision: To ensure a fair pricing system, CAAT is collecting comprehensive data to review fare regulations, aiming for a balance that equally satisfies airlines and consumers.

 

3. Cost Reduction Measures: The Transport Ministry is advancing efforts to reduce airline operational costs by streamlining airspace management and investing in infrastructure improvements to enhance fuel efficiency.

 

CAAT advises travellers to plan ahead for the best fares. Booking flights at least two to three weeks prior during low seasons, and up to six to eight weeks in advance during peak seasons, can yield significant savings, reported Bangkok Post.

 

-- 2025-02-04

 

 

 

[hotchilli]

They will just ignore that and gouge as usual.

[The Old Bull]

Bringing back the seniors discount would be a good start. It went when Thai Airways took over Thai Smile.