A Thai study on airline tickets is under way to find out air fares can be further cut

[attrayant]

Sounds like the minister is trying to justify his paycheck.

[Bakeman]

Last I heard they wanted to raise the prices?????

[rickirs]

"in a free market it is not the business of government to seek to influence prices"

However, it has been the business of Thai governments to interfer with company profit margins, ie., under the authority of the Goods and Services Price Control Act of 1999. Under this act business operators are also banned from engaging in activities that may raise or lower the price of goods and services, or may lead to a "confusion" regarding their prices. Violation of the Act means a fine of up to Bt140,000 and/or imprisonment of up to seven years.

It has also been the practice of the junta-led government to subsidize farmer profit margins, require food vendors to lower prices, "invite" companies to discounts product prices, etc. in the name of "Happiness to the People." Interference with a free market in Thailand may not be acceptable to the other ASEAN countries looking to expand businesses in Thailand. And if Thailand creates an unfair market barrier to ASEAN countries, they may create trade barriers in response. ASEAN is not going to become a happy familiy.

[attrayant]

In other words, more of the same micromanagement that any of us who has ever worked for a Thai-owned business knows all too well.

"Do your job however you like, but don't do this or that, and don't use these or those, and make sure you do this and that!"

Edited January 16, 2015 by attrayant

[tonysilly]

I guess the bus companies and mini vans will ha w to lower their prices, stop being drunk, stop driving so crazy in the road. Love small airline companies.

[jacko45k]

I thought they were planning to increase the fares, particularly those of the budget carriers?

It is very hard to keep up here!

[h90]

All airlines use modern very safe Aircraft. Can the same be said of the bus companies with their buses. I was looking at one recently which had just arrived in Suratthani from Bangkok. Great lumps of bog in the body work, all tyres not the same, a couple of them had seen their "use by date". But it had lots of pretty baubles and stickers with multi coloured lights fixed to the windscreen, so much so that i doubt the passengers could see out the front.

These are the very bus companies which the government are keen to support, mostly owned by one Hi-so lady operator.

And sure the bus would be still safe if the speed would be adjusted. Lets say at 50-60 km/h it would be OK. But no they drive what the engine can do.

[retarius]

About time somebody reined in these pirates....airfares have been rising way more than inflation since I have been here.....a trip home on the same airline has risen from 22,000 in 2009 to 56,000 now. It's a scandal.

[Docno]

Some fares are high, some fares are low. Not the business of the government. Its up to us to decide who we use. I find a return fare Bangkok to Brisbane for Bht 18,395. but others are charging Bht 25,350....................guess which one i will use.

Free markets don't always work as advertised. When the bar to entry in a market is high (how much does it cost to start an airline?) and there are only a few players, then it's not unheard of for companies to collude in over-charging consumers. This can even work informally when a handful of competitors are all wary of starting a price war. I'm not saying that governments should set prices, but it doesn't hurt for governments to ensure that companies are using fair pricing practices or at least raising consumer awareness (e.g., as to why airlines persist with fuel surcharges when oil prices are dropping).

[cocopops]

Some fares are high, some fares are low. Not the business of the government. Its up to us to decide who we use. I find a return fare Bangkok to Brisbane for Bht 18,395. but others are charging Bht 25,350....................guess which one i will use.

Free markets don't always work as advertised. When the bar to entry in a market is high (how much does it cost to start an airline?) and there are only a few players, then it's not unheard of for companies to collude in over-charging consumers. This can even work informally when a handful of competitors are all wary of starting a price war. I'm not saying that governments should set prices, but it doesn't hurt for governments to ensure that companies are using fair pricing practices or at least raising consumer awareness (e.g., as to why airlines persist with fuel surcharges when oil prices are dropping).

I think this is an important point generally, but not one that necessarily applies to airlines. The price of air travel has been consistently dropping for forty years. And a good percentage of folks who buy tickets shop around first - hence the success of the low-fare carriers. IMO, the free market system works well in this industry.

[Nemesis7]

It's always press conferences they say what not and soon after the party all forgotten and nothing ever works

[manhood]

It's realy interesting that Thaland wants to join an open ASEAN market but even their ministers are too stupid to understand the system of open market and a goverment should keep their fingers off any regulations as it's alaways a disaster ...and sure: one shark eats the other fishes: Thats LIFE.

[gchurch259]

All airlines have a "Cost per revenue seat mile" that does and should control the cost of the tickets. I have 32 years experience with commercial airlines and another 14 in consulting. You keep lowering the airfare the fiorst place the airline cuts corners is salaries and then maintenance.

Best leave it alone and allow the airlines and traveling public to control cost. After the US Government stuck their nose into the airlines and deregulated them, guess what, all but one filed bankruptcy and cleaned out the employees and the stockholders !!

[outboard]

Some fares are high, some fares are low. Not the business of the government. Its up to us to decide who we use. I find a return fare Bangkok to Brisbane for Bht 18,395. but others are charging Bht 25,350....................guess which one i will use.

The one with the biggest boobies !!!

[nithisa78]

if you need think about the cost , might not be worth leaving where you are.

[razer]

This guy changes his mind more than a whore on Sunday.

[ableguy]

As already stated, in a free market it is not the business of government to seek to influence prices. People will vote with their credit cards. That's enough to keep the airlines on their toes.

Seriously do you think any airline would ever listen to things these clowns in government say, ? Smart people ( mostly ) run airlines not crooked clowns .