Despite escalating operational costs, Thailand’s airlines are unlikely to trigger a new price war, while the Civil Aviation Authority of Thailand (CAAT) intends to retain the existing ceiling for ticket prices. This information was shared by Suttipong Kongpool, the CAAT director, during a seminar co-hosted by the Airlines Association of Thailand (AAT) and CAAT this week. Suttipong indicated that with jet fuel prices, a significant component accounting for 30-40% of operational costs, not expected to rise beyond US$120 per barrel in the near term, the regulated ceiling price would remain unchanged for at least three years.
As per CAAT rules, the upper limit for low-cost airfares is set at 9.4 baht (US$ 0.27) per kilometre, while full-service airfares are capped at 13.0 baht (US$ 0.37) per km. Suttipong noted that despite the pandemic-induced spike in…
