Be Competitive

IATA is calling on the government of Thailand to urgently address safety, capacity and cost issues to keep Thailand’s aviation sector competitive.

Tony Tyler, director general and CEO of IATA, said: “Aviation is critical to Thailand’s economic success. It is the backbone of the tourism industry and provides critical global business links. We estimate that today aviation and related activities account for some 2 million Thai jobs and generate $29 billion in GDP. And by 2035 we could see that grow to 3.8 million jobs and $53 billion in GDP. If realized, that potential 83% growth would have a broad and positive impact across the Thai economy.”

However, IATA’s boss continued: “It is in jeopardy, however, unless key issues of safety, capacity and costs are addressed urgently.”

The airline operating environment is extremely competitive. Low cost carriers account for 54% of the short-haul market in Southeast Asia. And the Gulf hubs are strong and growing competitors for long-haul traffic.

Said Tyler: “In the face of intense competition, Thailand’s aviation competitiveness is being chipped away with various new or increased taxes and charges. It is in Thailand’s long-term self-interest to review and abandon proposals that increase the cost of transportation. That includes taxes or charges.”

Go to http://www.iata.org for more.