Thailand: Aviation regulator bids to curb high airfares

The Civil Aviation Authority of Thailand (CAAT) on Monday unveiled plans to tackle high airfares during peak travel seasons, particularly around the Songkran holiday. CAAT director Suttipong Kongpool said the initiative follows a directive by Deputy Prime Minister and Transport Minister Suriya Jungrungreangkit to control airfares for the benefit of travellers. CAAT has outlined several measures to keep airfares reasonable. A price ceiling has been set based on flight distance, capping low-cost airline fares at 9.40 baht per kilometre and full-service airline fares at 13 baht per kilometre. This regulation applies only to direct bookings with airlines. The pricing structure is based on International Civil Aviation Organization standards. Approximately 25-33% of the collected fares go towards fuel, 20-31% for flight operations and 8-16% for maintenance. The aim of setting a price cap is to prevent airlines from excessively inflating ticket prices beyond reasonable profit margins<br/>