Thai aviation safety upgrade to boost air traffic

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Smaller airlines in Thailand, as well as discount carriers, are expected to benefit the most from the lifting of a red flag classification against Thailand over safety concerns by the United Nation’s International Civil Aviation Organisation (ICAO), which was imposed back in 2015 after the Thai aviation regulator missed a deadline to resolve significant safety concerns,

This meant that airlines were unable to add further international routes, though they could continue to operate routine flights. Thailand found itself in a red flag-assessed group alongside Djibouti, Eritrea, Haiti, Kyrgyzstan and Malawi, which caused trouble for the tourism-dependent nation keen of face-saving.

By ending the ban, Thailand-based airlines can now start adding flights to their network and are expected to do so especially to the growing Chinese, South Korean and Japanese markets. The biggest beneficiaries are seen to be smaller medium- to long-haul carriers, such as Thai AirAsia X, NokScoot and Thai Lion, according to aviation analysts, while state airline Thai Airways lacks enough aircraft to take meaningful advantage of the situation.

In spite of this, shares in Thai Airways climbed more than three per cent on the news on October 9 even though the carrier is now actually facing tougher competition. Shares in Asia Aviation, which operates as Thai Air Asia, also surged over three per cent, while shares in airport operator Airports of Thailand rose over two per cent.

The remaining problem is that Thailand is still being kept downgraded by the US Department of Transportation’s Federal Aviation Administration for aviation safety reasons, which means that Thai carriers cannot start new routes to the United States. However, it is expected that the US would follow the ICAO’s decision.

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Reading Time: 1 minute

Smaller airlines in Thailand, as well as discount carriers, are expected to benefit the most from the lifting of a red flag classification against Thailand over safety concerns by the United Nation’s International Civil Aviation Organisation (ICAO), which was imposed back in 2015 after the Thai aviation regulator missed a deadline to resolve significant safety concerns,

Reading Time: 1 minute

Smaller airlines in Thailand, as well as discount carriers, are expected to benefit the most from the lifting of a red flag classification against Thailand over safety concerns by the United Nation’s International Civil Aviation Organisation (ICAO), which was imposed back in 2015 after the Thai aviation regulator missed a deadline to resolve significant safety concerns,

This meant that airlines were unable to add further international routes, though they could continue to operate routine flights. Thailand found itself in a red flag-assessed group alongside Djibouti, Eritrea, Haiti, Kyrgyzstan and Malawi, which caused trouble for the tourism-dependent nation keen of face-saving.

By ending the ban, Thailand-based airlines can now start adding flights to their network and are expected to do so especially to the growing Chinese, South Korean and Japanese markets. The biggest beneficiaries are seen to be smaller medium- to long-haul carriers, such as Thai AirAsia X, NokScoot and Thai Lion, according to aviation analysts, while state airline Thai Airways lacks enough aircraft to take meaningful advantage of the situation.

In spite of this, shares in Thai Airways climbed more than three per cent on the news on October 9 even though the carrier is now actually facing tougher competition. Shares in Asia Aviation, which operates as Thai Air Asia, also surged over three per cent, while shares in airport operator Airports of Thailand rose over two per cent.

The remaining problem is that Thailand is still being kept downgraded by the US Department of Transportation’s Federal Aviation Administration for aviation safety reasons, which means that Thai carriers cannot start new routes to the United States. However, it is expected that the US would follow the ICAO’s decision.

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