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Thailand: Airlines defend pricey plane tickets
Airlines are defending their expensive tickets, saying the rates reflect a spike in operational costs due to surging fuel prices and several other factors.
Wutthiphum Jurangkool, Nok Air chief executive, said airlines are also facing a surge in prices of several items in the aviation supply chain following the pandemic.
These include the price of jet fuel, which accounts for about 30% of overall operations, due to the Russia-Ukraine war, as well as an increase in the price of spare parts and aircraft insurance, said Mr Wutthiphum.
Other major costs derive from a longer aircraft leasing contract of 3-4 more years.
Despite a lower leasing rate, Mr Wutthiphum said an older fleet would normally require a high maintenance cost which pushed up overall operational costs.
Last week, the issue of costly domestic airfares went viral as passengers complained on social media about high ticket prices, such as from Bangkok to Trang for 7,595 baht, compared to Singapore on the same date at 4,200 baht.
Mr Wutthiphum said airfares during the high-demand holiday period would typically surge as most passengers would fly from Bangkok to other provinces, causing an imbalance in traffic and prompting airlines to adjust their prices to control costs.
As the transport minister asked airlines for cooperation to maintain prices, he said the average airfare during the Songkran holiday and upcoming low season had already been revised down until they had become closer to the level seen in 2019.
Source: https://www.bangkokpost.com/business/2547214/airlines-defend-pricey-plane-tickets