THE PAVILIONS PHUKET BRITISH INTERNATIONAL SCHOOL, PHUKET
THE PAVILIONS PHUKET BRITISH INTERNATIONAL SCHOOL, PHUKET Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


Three Thai airlines face CAAT clampdown

Three Thai airlines face CAAT clampdown

BANGKOK: Three Thai-registered airlines are experiencing a financial crunch after their operations were severely affected by a sharp drop in Chinese tourists.

Chinesecorruptiontransporttourism
By Bangkok Post

Monday 21 November 2016, 09:00AM


Chula Sukmanop, head of the Civil Aviation Authority of Thailand (CAAT) says the government’s jihad on zero-dollar tours by Chinese has caused a crisis for three airlines he did not name. Photo: Somchai Poomlard

Chula Sukmanop, head of the Civil Aviation Authority of Thailand (CAAT) says the government’s jihad on zero-dollar tours by Chinese has caused a crisis for three airlines he did not name. Photo: Somchai Poomlard

The Civil Aviation Authority of Thailand (CAAT) ordered the three airlines to devise financial rehabilitation plans in response.

The number of tourists from mainland China to Thailand has fallen significantly after the government launched a major crackdown on zero-dollar tour scams in September.

CAAT director Chula Sukmanop said he instructed the airlines, which operate flights to international destinations mainly in China, to work on solutions to their financial problems and submit their plans to the agency this month.

If the airline operators fail to meet the deadline, they could face tough measures including a suspension of their service, Mr Chula said. He declined to name the airlines.

The CAAT’s move came after the airlines faced liquidity constraints and were unable to pay their debts including fuel costs and other expenses at airports overseas.

Revenues for the airlines fell sharply following the government’s clampdown on zero-dollar tour networks operated by the Chinese.

“The CAAT will consider whether the financial rehabilitation plans are feasible. However, the service suspension will depend on Prime Minister Prayut Chan-o-cha’s decision,” Mr Chula said.

However, he said the agency has yet to order the three airlines to stop ticket sales as their financial problems were caused only on some routes such as those to China, he said.

Laguna Golf Phuket

According to Suvarnabhumi Airport general manager Sirote Duangratana, the number of Chinese tourists entering Thailand per day via the airport dropped to 4,000 from 13,000 in August.

In September, authorities raided OA Transport Co and seized its 2,150 tour buses and confiscated B4.7 billion from its bank accounts and those of its affiliates.

The company, which was the main bus provider for Chinese tourists, is accused of illegally conducting businesses in connection with zero-dollar tour scams. Company executives have denied the allegation.

Tour agencies have cried foul, saying about 70 per cent of tour groups from China cancelled their trips following the incident.

Sports and Tourism Minister Kobkarn Wattanavrangkul said she will call a meeting of operators concerning Chinese tour businesses this week to discuss their problems and the government’s policy on the zero-dollar tour crackdown.

Ms Kobkarn remains confident that the number of Chinese tourists this year will reach 9.2mn, compared to 7.9mn last year.

Zero-dollar tours involved Chinese visitors paying low prices for tour packages but once in Thailand, they were pressured into buying overpriced food, accommodation and gifts.

Read original story here.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

Sir Burr | 21 November 2016 - 15:32:58

.....and those three Thai registered airlines are?

No one can actually say due to the threat of court action by one of the three.

marcher | 21 November 2016 - 11:01:22

Which 3 airlines?

Have a news tip-off? Click here

 

Phuket community
Govt waives visa fees, not visas, for Chinese, Indian visitors

so which other countries are exempt ? full story please --------------------------------- The MFA...(Read More)


MP Sira warns Governor of Amlo complaint over Phuket condo project

Reading again the word 'fairness' make me puke. That is a word used here for arranging matte...(Read More)


MP Sira warns Governor of Amlo complaint over Phuket condo project

Seems like he has been cut out of the project and is abusing his position over sour grapes. Nothing ...(Read More)


After death threats, Bangkok MP fires up legal action over Phuket condo project

One wonders why a Bangkok MP is sticking his nose into Phuket issues. He clearly didn't get his...(Read More)


After death threats, Bangkok MP fires up legal action over Phuket condo project

Dear K. Cheewapap, Why are you allowing hundreds of rai in the Sirinart Nat'l Forest Reserve al...(Read More)


Three underpasses to close for electrical works

So, no reason given as to why the "metres[sic]" were not installed before the tunnels were...(Read More)


Smith's Ashes run-spree sparks Bradman comparisons

The comparison to Bradman itself is baloney. They never had batting helmets in the old days, bats we...(Read More)


Smith's Ashes run-spree sparks Bradman comparisons

The Captain of the Australian Team IS supposed to be perfect, in regards to not intentionally cheati...(Read More)


Smith's Ashes run-spree sparks Bradman comparisons

It wasn't a mistake by Smith. It was intentional cheating that he as Captain of the Australian t...(Read More)


Three underpasses to close for electrical works

Why not make this during night time ?...(Read More)