Thailand faces the renewed prospect of its airline industry falling prey to political vested interests in the wake of the dissolution of the Thai government on 19 May and the elections set for 2 July.
The dissolution has meant the departure of both the transport and finance ministers, two highly regarded technocrats who were central to plans for air transport liberalisation and the privatisation of Thai Airways International.
The crisis came before the formation of two high-level committees needed to take final decisions on the key issues of Thailand's proposed second airline and the construction of the Baht97.3 billion (US$4 billion) second Bangkok international airport.
With the Thai media regularly reporting cases of politicians selling their loyalty to political parties for as much as $1 million, the financial mentors of corrupt politicians could get a slice of the second airline or some of the airport construction contracts, analysts fear.
There is also speculation that Thai International may succeed in delaying the second airline's establishment or restricting it to non-competing routes. Bangkok Airways is among the contenders to set up the new carrier.
Thai chairman Amaret Sila-on, who was appointed by the outgoing finance minister to get Thai back in shape, says he has no immediate plans to resign but will wait and see who takes power.
Airline operating licences approved by the outgoing government will not be affected. Meanwhile Orient Express, formerly Cambodian International Airlines, has won permission to operate between provincial cities within Thailand using two vintage B737s and a B727.
Airline operating licences approved by the outgoing government will not be affected. Meanwhile Orient Express, formerly Cambodian International Airlines, has won permission to operate between provincial cities within Thailand using two vintage B737s and a B727.
Source: Airline Business
