Teerawat Angkasakulkiat, president of the Thai Pilots Association, states that pilots at Thai low-cost carriers face a 10% reduction in flight hours since last month. Thai Airways has also trimmed flights on select routes and dates, though this has not yet impacted its pilots.
Cost-Cutting Measures Hit Allowances
This month, several low-cost carriers implement temporary cuts to various allowances, including those for duty travel requests, per diem, instructor duties, and follow-flight activities. One carrier operating from Don Mueang airport slashes its productivity allowance by 30%, resulting in lower earnings for pilots even when flight hours remain steady, sources in the aviation industry confirm.
Some airlines now divide payroll into two monthly installments to tightly control operational costs during this challenging time. No carriers have resorted to furloughs, unlike during the pandemic era.
Oversupply of Pilots in Job Market
More than 1,000 licensed pilots continue to seek employment in Thailand, the association reports.
Airlines Respond to Rising Fuel Costs
All Thai airlines reduce flight schedules by 10-20% and raise fuel surcharges since April to offset surging fuel prices. These increases stem from disruptions in the Strait of Hormuz, a key transport route.
Last week, representatives from the Airlines Association of Thailand confer with the transport minister, Airports of Thailand, and the Civil Aviation Authority of Thailand. They address the ongoing effects of the Middle East crisis and propose several relief measures.
Key Requests Include:
- Reducing, waiving, or postponing aviation fees and charges for six months
- Extending credit terms for fees from April to September by six months
- Cutting the excise tax on Jet A-1 fuel from 4.726 baht to 0.20 baht per liter for six months, or extending related credit terms
Current Fuel Price Trends
The International Air Transport Association’s Jet Fuel Price Monitor shows an average price of US$162.89 per barrel for the week ending May 8. This marks a 10.1% drop from the prior week and 13.5% from a month earlier, yet it remains 80.9% higher than a year ago.
