Budget firms say fuel costs are a burden

Thai AirAsia and Thai Lion Air jets parked at Don Mueang airport. (Photo: Apichit Jinakul)
Thai AirAsia and Thai Lion Air jets parked at Don Mueang airport. (Photo: Apichit Jinakul)

Budget airlines are calling on the Finance Ministry to help reduce the excise tax on jet fuel to lower costs for airlines, which claim to be in a fragile state.

Speaking after meeting with representatives of low-fare airlines on Thursday, Deputy Finance Minister Julapun Amornvivat said the carriers discussed the economy and expressed their intention to support government measures to drive tourism.

The low-cost carriers said after weathering the pandemic, they are working to strengthen their position.

They want the ministry to help reduce the excise tax on jet fuel, and officials are considering their requests, he said.

The ministry must consult with the Energy Policy Committee before any changes are made, said Mr Julapun.

He said the ministry advised the budget airlines to consider other government assistance mechanisms, such as loans to help with liquidity and state efforts to help address this issue.

Given ongoing public complaints and frequent discussions in parliament about high domestic airfares, Mr Julapun said this issue needs to be addressed by low-cost carriers.

He said the low-cost carriers should clearly propose how the government can help them reduce airfares, such as cutting the excise tax on jet fuel, and how this benefit would be passed on to consumers.

If these carriers can ensure that a lower excise tax will reduce passenger ticket prices, it will increase the likelihood of the proposal being approved by relevant agencies and the cabinet, said Mr Julapun.

During the pandemic, the lockdown shattered airlines. At that time, the government reduced the excise tax on domestic jet fuel to 0.20 baht per litre from the normal rate of 4.726 baht per litre for three years, from 2020 to 2022, to help domestic airlines and stimulate domestic tourism.

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