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Airline Alliances Shatter Expectations: Inside Thailand’s Secret Strategy to Trigger a Tourism Tsunami!

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In a highly attended meeting that took place on Monday, prominent airlines and governing bodies convened to evaluate and strategize the current flight dynamics in Thailand. They also deliberated over new schemes that would instigate a much-needed surge in the tourism sector, particularly for the forthcoming bustling holiday season.

Leading airlines including Thai Airways, Thai VietJet Air, Thai AirAsia, Thai AirAsia X, Thai Smile Airways, Bangkok Airways, Thai Lion Air, and Nok Air made their significant presence felt at the crucial meeting. The meeting also witnessed participation from the AOT (Airports of Thailand) and CAAT (Civil Aviation Authority of Thailand).

A series of strategic proposals were presented by the airlines, AOT and CAAT to boost air traffic, including a surge of at least 20% in flight frequency, expanding the aircraft capacity to welcome more passengers and targeting big markets like China and India for tourism. There were also discussions surrounding the modification of the aircraft fleet to effectively match the tourism drive.

The government showed keen interest in getting the airlines ready as it has eyes set on initiating more travel campaigns next year. The airlines expressed their readiness to enhance flights and routes, subjected to the government’s support in stimulating domestic demand. They also exhibited interest in making ticket prices more affordable.

Tassapon Bijleveld, the influential executive chairman of Asia Aviation Plc (it holds a substantial stake in Thai AirAsia), urged the government to abolish visa fees for tourists arriving from China and India. He also stressed on the need for authorities to ascertain the readiness of airlines to serve different destinations, particularly the southern parts of Phuket and Krabi.

The airlines adamantly requested a reduction in the excise tax levied on aviation fuel. Getting back to its original rate of 4.73 baht per litre from July 1, the airlines proposed a cut to 0.20 baht per litre with eventual increases, akin to the strategies implemented during the Covid pandemic.

Santisuk Klongchaiya, CEO of Thai AirAsia, and Puttipong Prasarttong-Osoth, president of Bangkok Airways, echoed a common sentiment – easier visa measures will attract more tourists from target countries to Thailand.

Current statistics reveal that about 80-90% of Chinese tourists prefer a visa-on-arrival scheme that costs 2,000 baht per person. There has been a decreased yield of Chinese tourists, with merely 2 million visitors landing in Thailand in the initial eight months of this year. Relaxing visa fees is expected to usher in more tourists, helping Thailand reach its aim of attracting 5 million Chinese tourists.

Thai AirAsia is moving forward with plans to intensify flights to six pivotal Indian cities to gain ‘open skies’ status and lure Indian crowds to Thailand. Other airlines are concentrated on campaigns that endorse domestic travel by slashing travel expenses and focusing on secondary cities.

Stressing on the need for effective urban planning and addressing environmental concerns, Suksit Suvunditkul, president of the southern chapter of the Thai Hotels Association (THA), highlighted the remarkable issues that Phuket, a top destination, is grappling with. He demanded obvious efforts to manage airport congestion and traffic problems and improve tourists’ safety.

Kerati Kijmanawat, AOT president, said that airports under AOT’s jurisdiction are prepared for the high season that commences in October. Similarly, Suttipong Kongpool, CAAT’s director-general, shared a gleaming outlook about Thai tourism stakeholders regarding the revival of the industry, especially with the positive impact of eased visa measures and increased flight frequencies.

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