Thai aviation policy has taken a step backwards since the election of a seven-party coalition government in July and the shakeup at the transport ministry which has allowed the air force to regain its grip on Thai Airways International.
The changes have caused an uproar in the Thailand amid concerns that a more protectionist stance towards the flag carrier will continue to alienate foreign carriers and reduce plans for an independent second airline to a farce.
The new transport and communications minister, Wan Noor Mohammed, has more political battles to fight than his predecessor, Bichit Surapongchai, an energetic former banker who was intent on founding a fully independent second carrier.
The first signs of a return to the chequered past of military control came in the appointment of Thai's new chairman to replace Amaret Sila-on, a respected businessman and former commerce minister, who resigned after the July elections. Wan Noor eventually chose Air Chief Marshall Siripong Thongyai, who will serve in an acting capacity until the AGMin December. A Thai board member, Siripong was due to retire as head of the air force in September.
This has cast doubts on the new government's approach to aviation policy. There are clear indications that a hard line has set in aimed at protecting Thai from significant competition. Both United and Lufthansa, Thai's partners, are understood to be worried about the situation.
Over the last months more foreign carriers have started pulling services out of Bangkok. Singapore Airlines has dropped its five weekly fifth freedom services to Europe and Qantas has pulled out of Bangkok-Bali.
Delta Air Lines will withdraw services in December, because of the seat-capacity restrictions imposed on it by the last government. This will bring the number of weekly frequencies by US carriers down from 31 to 18 since the US bilateral was abrogated in November 1990. Thai's US partner United pulled off Bangkok-Taipei earlier this year in anticipation of gaining codeshare rights, but Thailand has withheld them because of the bilateral vacuum.
The tourism industry has responded by launching its own study into the handling of aviation policy due in mid-October. Fearing a political backlash, Wan Noor is now trying to appoint the head of the national tourism organisation to the traffic rights negotiation committee and has invited the tour operators for talks. Both are unprecedented steps.
Concern is also rising over the policy on the second carrier, which the previous government intended as an independent yardstick against which Thai could hone itself. It is now anticipated the proposals will be tinkered with to suit Thai's demands for a partly owned feeder carrier to take over its unprofitable routes.
Source: Airline Business