Industry Issues

From time to time the BAR is asked to outline the airline position on specific or general airline issues by both Government or private organizations, and may issue press releases on specific issues, which can be viewed below:

July 2010 – at the request of the Joint Foreign Chambers of Commerce of Thailand BAR updated a briefing document “JFCCT Policy Paper – Aviation Sector”, which BAR had originally prepared for the Joint Foreign Chambers of Commerce of Thailand in 2008.

May 2009 – at the request of the Prime Minister’s office BAR issued a paper “Areas of Concern for Airlines in Thailand”
 

Summary of Airport Issues:

Single Airport Policy
The Thai Government appears to be favoring a single airport policy for Bangkok, a position which has always been supported by the DCA and BAR, since it is the only way to achieve hub status for Bangkok.  If Don Mueang Airport (DMK) remains operational, it is almost impossible to split traffic in such a way that it will relieve Suvarnabhumi Airport (BKK) during the peak periods while still maintaining the connectivity needed for a hub airport.  To develop and promote cargo operations to support both exporters and importers, they must be consolidated at a single airport, and since a large percentage of cargo is carried by passenger aircraft, this consolidation must be at Suvarnabhumi Airport.  This still leaves opportunities for Don Mueang Airport in the areas of general aviation, maintenance, private aircraft, VIP flights, etc.

Second Phase Expansion of Suvarnabhumi International Airport
Today Suvarnabhumi International Airport (BKK) is operating at close to its maximum capacity, and although in the past two years air traffic has suffered a decline, it is now recovering and starting to grow again. Because of the lead time required to build airport facilities, it is essential that work begin immediately on the Second Phase Expansion plan for  additional terminal space and, ideally, a third runway.  These will take a minimum of five years to complete, so if they are not started now, by 2014-2015 BKK will not be able to accommodate the projected traffic growth, and will lose its position as a major aviation hub of the region.  Currently there are only 51 contact gates at BKK,  and the reliance on bus gates is increasing connecting times due to the extra time needed for passenger and cargo transfer and essential inline screening of baggage which disadvantages BKK as an aviation hub.

Airport Charges at Suvarnabhumi International Airport
Since  2009 Airports of Thailand plc (AOT) has granted reductions in landing charges and the reduction or, in some circumstances, the waiver of parking fees.  Initially the reductions were valid until the end of 2009, but in 2010 some reductions were extended to the end of 2010, with the introduction of other concessions and bonus schemes. These concessions are appreciated, but in view of the ongoing challenges facing our member airlines in containing operating costs in the face of the continued economic difficulties, the concessions need to be extended beyond the end of this year.  This will help enable airlines to maintain, or in some cases even increase the flight frequencies needed to promote travel to Bangkok and increase Thailand’s  tourism receipts.

Airport Charging Policy (Dual Till versus Single Till)
The Department of Civil Aviation (DCA) commissioned a study of maximum rates for airport landing and parking fees.  The study was based on a dual till policy, which allows airports to recover all costs from airlines and keep all the profit from commercial activities.   At a meeting with the DCA to review the study, the International Air Transport Association (IATA) pointed out that the dual till approach is unfair to airlines because airports are monopoly organizations and their profits come from the passengers brought in by airlines.  Therefore an airport should be considered in its entirety with some part of the profit contributing to operating costs because without the airlines there would be no customers.  With the dual till, all the costs are borne by the airlines, making the airport more expensive for them, and potentially diverting transit and other traffic to airports which offer more attractive rates.  BAR would certainly support a single till approach, but to date the DCA has not indicated any change in its position to go ahead with a recommendation for the dual till, without any form of compromise.
 

Summary of Infrastructure Issues:

Aeronautical Radio of Thailand Ltd. Charges
Air traffic control and other aeronautical charges by Aeronautical Radio of Thailand Limited (Aerothai) have in the past been a cause for concern because of a lack of clarity in the charging regime, which appeared to be  in conflict  with the recommendations of the International Civil Aviation Organization (ICAO).  These state that airlines should be charged only for the services which they use.  The majority of airlines operating into Thailand operate only to Suvarnabhumi International Airport (BKK).  However, Aerothai provides aeronautical services to all of Thailand’s 36 airports, which include 27 provincial airports with little financial viability, and from the financial information provided by Aerothai to its B-shareholders, who comprise most of the airlines operating to BKK, it is impossible to determine how its expenses and earnings are shared between the different airports.  However, recently Aerothai has been communicating with IATA and airlines on the reorganization of its operations and its efforts to improve coordination and harmonization between Air Navigation Service Providers in the region.  It is seeking support from the Thai Government for major investment to upgrade the infrastructure needed in order to adhere to ICAO’s Air Navigation Plan and Global Air Traffic Management Operations Concept, and it is hoped that the Thai Government will support Aerothai in recognition of its role in the sustainability and development of the aviation industry.

Immigration Overtime Charges
Most airports which are operated on a 24 hour basis provide Immigration facilities on a 24 hour basis, unlike BKK, which provides Immigration facilities only from 0830 – 1630 on weekdays.  Airlines must pay overtime charges for the other 16 hours per day, plus all day on weekends and public holidays.  This is based on Government legislation which has been in force for over thirty years, and which needs Government approval for any amendment.

City Rail Terminal
The City Rail Terminal (CRT) has the potential to enhance BKK’s profile by providing passengers with a fast, safe and convenient link to the city center, while relieving congestion at the airport terminal by allowing passengers to check in at the CRT and bypass the airport check in desks. It could also help reduce traffic congestion on roads to the airport.  While both the city and the airport lines are already offering limited commercial service, in order to fulfill its potential it needs to open the City Terminal for full service as soon as possible, and incentives should be offered to airlines, in the form of reasonable rental charges so that they will be prepared to open offices and check in desks.  Incentives must be offered to passengers to convince them of the advantages of the CRT, for example, through free transfers between hotels and the CRT.  Incentives to hotels and tour operators could include free or reduced rate advertising and promotion of these services, etc. leading them to recommend passengers to use the CRT.  While there is a financial cost for these incentives, this could be recouped through the increase in numbers of passengers using the CRT.
 

BAR Briefing Documents:

JFCCT Policy Paper - Aviation Sector  - updated July 2010

Industry Overview

1. The past decade has seen the aviation industry globally faced with  a seemingly endless series of crises.  In 2000 airlines were celebrating the seventh year of profitability across the industry, with year 2000 profits of USD 10 billion on revenues of USD 328 billion, a modest enough profit, but still profit.  In the ten years since 2000 the industry globally has recorded a deficit of USD 50 billion.  Not all airlines suffered equally but this puts into perspective  the fragility of the industry and helps to explain why airline companies are always looking at every destination to which they operate with a view to eliminating any areas where operations are not cost effective.
    
2. Fuel prices have a major impact on the industry, and are completely outside its control.  From 2000 to 2007 fuel prices doubled, but then the oil crisis pushed  prices to unprecedented heights and redoubled the price by November 2008.  The 400% increase in fuel prices over an 8 year period was a crippling blow for the industry. Even though prices have declined from the record highs of 2008, they still stand at a 250% increase over 2000 prices and are still volatile, another reason why airlines cannot afford to subsidize any non-profitable operations.
    
3. The global economy has a significant effect on airline economics.  A thriving economy encourages businesses to expand overseas, shuttling business travelers across the continents filling the business and first class seats that airlines provide especially for their needs.    Thriving businesses mean full employment with high salaries and wages, enabling executives and workers at every level to afford leisure travel to the tourism centers of the world.  Markets demand more and more goods, more and more quickly and air cargo ensures that these demands are met.  But when the global economy is shocked into recession, as happen in late 2008 in the United States, with further shocks across Europe throughout 2009 and 2010, then everything changes.  Business travel is curtailed, leisure travel is cut back and even the cargo traffic falls, so once again airlines are cutting costs, cutting staff and cutting any destinations that do not produce profits.
    
4. Natural disasters also have an impact on airline operations, as shown by the European volcanic ash crisis in May this year.  The airspace closure was in Europe, but it affected airline operations world wide, causing heavy expenses to airlines whicho had to assist stranded passengers while losing revenue through a shutdown in operations.  With so many factors outside their control, airline companies must maintain tight control wherever possible, which means operating only to those destinations that provide consistently profitable returns.
    

Political Uncertainty in Thailand
Airlines across the globe are subject to low profit margins, high fuel prices, dependence on the global economy and at the mercy of natural disasters, but airlines operating into Thailand have been faced with  added problems specific to this market.  In November 2008 Bangkok’s international airports were shut down for ten days due to civil unrest.  This resulted in hundreds of millions of baht in direct expenses to airlines as they struggled to help their stranded passengers, not counting the untold millions of baht lost due to aircraft being stranded in Bangkok causing a loss of business opportunity, and the disastrous effect on tourism confidence.  Although the Government initially indicated that it might reimburse airlines for their direct expenses, in the end there was no compensation.  Airlines had to persuade their Head Offices that in spite of the financial losses, and traffic downturn, it was worthwhile continuing to rebuild their Thailand operations.

2009 saw tourists returning to Thailand and traffic picking up, when violent protests during the ASEAN Summit in April 2009 in Pattaya put Thailand back on the front pages of the world’s newspapers, tourism confidence was dented yet again and air traffic suffered.  But again confidence was rebuilt and by the beginning of this year tourist arrivals increased.  During the first quarter of this year 4.7 million tourist arrivals were recorded, a historic high, and arrivals through Suvarnabhumi Airport were also soaring, but they started to slow down in mid-March when political rallies began, and after the violent clashes in April and May arrivals dropped sharply.  Rebuilding traveler confidence becomes more difficult after each eventincident, and unfortunately isolated incidents are an ongoing problem.  On a global scale Asia is leading the airline industry in terms of a return to profitability, but Thailand is lagging, giving a competitive edge to other countries in the region.

The Main Airline Objective
This is the same for all airlines operating into Thailand, and it is how to sustain profitable operations that contribute to their company’s financial viability,  ensuring Thailand’s continued position in their company route net.  Thailand based airlines may have additional concerns, but they still need to serve their airline and their passengers efficiently and effectively while keeping costs down to a sustainable level.

The Issues and how they might be addressed

1. Political uncertainty has caused tremendous damage to Thailand’s economy, especially the tourism sector, and obviously the sharp drop in tourist arrivals after the recent street violence has impacted badly on airlines.  The Government is supporting the Tourism Authority of Thailand with campaigns to win back tourists, and this is appreciated by everyone in the industry.  But the situation needs the concerted efforts of the various Government ministries and agencies to build up even closer relationships with foreign embassies and organizations so that  when a situation arises they can talk quickly with  these people and ensure that the correct information is being passed to foreign governments.   Recent events have shown that foreign news agencies are not always balanced in their reporting and if these are the sources used by foreign governments to assess the situation in Thailand then it is not surprising that they sometimes over-react in the issuance of travel warnings and advisories.  Since these advisories may also affect the provision of travel insurance for tourists, they need to be based on accurate information.  Foreign companies and Chambers of Commerce can also help by passing information to their respective governments.
   
   Recent events have also highlighted the need for risk management reassessment by all businesses in Thailand, another added cost for airlines operating here.  But business continuity and contingency planning has become a priority, in spite of the increased costs involved, as most airlines experienced problems during the airport closure and many city airline offices were inaccessible during the political clashes in April and May this year.
    
2. Airport Capacity - Suvarnabhumi Airport is the gateway to Thailand and has the potential to become a major aviation hub in the region, but it also faces intense competition from airports in neighboring countries which offer excellent facilities and a minimum connecting time of 60 minutes or less, while Suvarnabhumi still requires 75 minutes.  This is a major factor when developing the hub concept.  These competing airports already have the infrastructure in place to meet future increases in passengers, while  Suvarnabhumi Airport will soon reach its maximum capacity of 45 million passengers annually and yet expansion plans are still just in the planning stage.
   
   At the close of 2009 air traffic began to pick up, and in 2009 Suvarnabhumi Airport recorded 40.5 million passengers, an increase of 4.9% over the previous year.  In January of this year 4 million passengers were recorded at Suvarnabhumi Airport, February continued the trend, and if it had continued for the remainder of the year, then the airport would have been well over its planned annual capacity.  The  Airports of Thailand PLC (AOT) has announced various plans for expansion, including at different times, a third runway, a domestic terminal, midfield terminal, etc., but so far nothing has been started, and given the minimum four year lead time to bring new facilities on line, the situation is critical.   Government funding seems to be unavailable and yet the airport is a major national resource, with majority Government ownership.  The development of its infrastructure to keep up with demand should be seen as a Government priority, given that airports, and the airlines they serve, are drivers of economic development.
   
   The AOT has recently announced plans to develop vacant land that it owns on the eastern fringe of Suvarnabhumi Airport for residential, commercial and entertainment purposes to turn its extensive non-performing real estate into a  revenue stream, and while this may improve the AOT’s earnings, it will not solve the immediate problems of congestion at the airport.
    
3. Airport Charges -  Airlines have taken up raised with both the AOT and the DCA the case for using the “Single Till” concept at Suvarnabhumi Airport.  This means that commercial as well as aeronautical revenues received by the airport operator are taken into account in assigning the appropriate maximum level of airport charges.  This is a sound policy since the commercial revenues cannot be generated without aeronautical facilities, and in practice, it is very difficult to allocate both investment and operating costs between aeronautical and commercial activities, in addition to which, as airlines bring in the customers who make commercial operations profitable, it is reasonable that they should also share in the benefits.  Currently 60% of AOT’s revenue is from aeronautical activities, and it aims within 5 years to split the aeronautical and non-aeronautical revenues 50-50.  Many airport operators generate 55 – 70% of their revenues from non-aeronautical activities, sharing the benefits with the airlines either through a single till policy, or at least a modified single till where a portion of the non-aeronautical revenue is incorporated into the calculation of airport charges.  So far the AOT has not indicated that it will consider this option.
   
   Since 2009 AOT has provided concessions to airlines in the form of reduced landing and parking fees, and they have agreed to continue these discounts, though at a lower rate, through 2010.  They have also introduced a package to try to encourage new entrants to the market since the beginning of this year.  These are very welcome actions and it is hoped that they will continue to support airlines in this way.  AOT has also lost revenue because airlines have cut flights to Bangkok as part of their own cost cutting measures, andbut it is important that AOT finds ways to win back some of these airlines, and keep its current customer airlines satisfied, so that they will continue to serve Bangkok.
    
4. Government regulation -  Airlines have slashed costs and streamlined operations in order to increase efficiency to cope with the current situation and those business partners, including airport operators, who are monopoly service providers, should be supporting these efforts, preferably through their own initiatives to increase efficiency, but if necessary through enforcement by Government agencies as aviation regulators.  The Department of Civil Aviation (DCA) has been studying a method of capping airport charges and regulating increases, but input from airlines and international aviation agencies has not been used as much as would have been hoped.
   
   However, the DCA has recently established a Slot Coordination Committee under their leadership, with representatives from AOT, Thai Airways International PLC (THAI) and Aeronautical Radio of Thailand (Aerothai) which should ensure fairness and transparency in the allocation of departure and arrival time slots.  This is in line with airline preferences since the DCA is a neutral body, and therefore the mostre suitable to lead this Committee. rather than leaving it to either THAI or AOT alone.
    
5. Interim Measures -  There are ways to “buy” time for the airport by increasing its passenger throughput capacity without increasing the physical structure, and these should be pursued urgently.  Through the use of technology including CUSS kiosks and other automated systems, off-airport check in, etc., temporary relief can be gained, but still the expansion plans must be started very quickly.  The AOT has already implemented some improvements through the use of swing gates, centralized security screening, fast track for premium passengers etc. and these efforts are appreciated, but more needs to be done.
    
6. City Airport Rail Link -  It is good news that the city/airport rail link may be opened commercially within the next few months.  This will provide opportunities to free up terminal space by having checkin counters at the rail terminal, and will provide another facility for passengers, although details of the rail terminal facilities have not been given to airlines yet.  It will also be necessary to “sell” the rail terminal checkin creatively to travelers, given that taxi fares to the airport in Bangkok are quite competitive when compared to rail fares.  By enlisting the help of hotels and tour operators it should be possible to maximize the use of this new facility.
    
7. Air Freight – Not only passenger traffic but also cargo traffic began to pick up at the end of 2009, and this continued to increase this year even more than passenger traffic.  The air freight market is an importantce revenue generator for airlines, not just cargo operators but also passenger carriers, since much of the world’s air cargo is carried by passenger aircraft.  Unfortunately air cargo handling at Suvarnabhumi Airport is not being supported and encouraged to develop due to an incomplete IT system lacking professional management.  There is a lack of perishable goods and special handling activities centers in the free zone terminal which is not yet operational.  This is an area that needs to be addressed since globally cargo traffic has rebounded faster than passenger traffic, and Suvarnabhumi Airport needs to be prepared for this increase in demand.
    
8. Single Airport Policy – Uncertainty about Thailand’s commitment to a “single airport policy” for Bangkok creates confusion and difficulty for airlines’ long term planning.  Airlines have always advocated a single airport policy as the only way to develop Bangkok as a major aviation hub.  The DCA appears to endorse this view, and yet the Government continues to waiver and study this issue, even suggesting a rail link between the two airports.  There was also consideration of developing Don Mueang Airport as a cargo hub, but this is impractical since much air cargo is carried by passenger aircraft, and forcing cargo handlers to serve two airports would be too costly.  The suggestion that Don Mueang should serve general aviation, charters and a maintenance center seem the most practical.  Given th essential role played by aviation and airports in a country’s economic development, the Government should be trying to coordinate support for both the airport and airlines.
    

Benefits to Thailand from a pro-aviation policy

1. Tourism is one of Thailand’s main revenue earning sectors, providing a livelihood for a large segment of the population.  Tourists arrive mainly by air, and therefore it is in the Government’s interest to promote a healthy, growth environment for the airline industry in order to provide the necessary transportation for these tourists.  Any reduction in the number of airlines operating into Thailand, or a reduction of frequencies, means a reduction in the number of tourists.
    
2. Similarly, the airlines themselves provide employment opportunities, which support not only the employees, but their families, and local businesses which are supported by the spending of these employees and their families, and the Government benefits from the taxes paid by these employees.  Airlines themselves contribute to the economy through their spending and through their taxes.
    
3. Any reduction in airlines or frequencies reduces revenues for the airport operator, both in terms of payments by the airlines, and a reduction in number of passengers, which reduces the potential for non-aviation revenue.
    
4. A single airport policy benefits the airport operator due to the savings derived from trying to operate an underutilized second airport, and avoids the unacceptable possibility of forcing airlines using one airport to subsidize the users of a second airport.  It also supports development of a hub position for both passengers and cargo.   In Bangkok, operating two airports in such close proximity not only increases the costs for Aerothai, but also contributes to the difficulty and risk of air traffic control management.
    
5. Improving cargo handling facilities benefit both Thai importers and exporters, due to the effects on logistics and supply chain management.  A dedicated perishable goods center would promote Thai agriculture, increasing the export opportunities for this sector.
    
6. Updating legislation and regulations to make airline operations easier, would bring Thailand in line with international standards, and also encourage the development and growth of aviation activities in Thailand.
    

Ministries/Agencies involved
Ministries of Transport, Tourism, Finance, Agriculture, Commerce etc. Departments of Customs and Immigration, AOT, Aerothai, DCA, Industry Associations etc.


May 2009 – Areas of Concern for Airlines in Thailand - prepared at the request of the Office of the Prime Minister

1. Assurance of Thailand’s Safety as a Tourism Destination
   This is perhaps the single most important concern.  Although BAR has written to AOT requesting assurance that measures have been put in place to prevent any recurrence of last year’s airport closure, so far there has been no response.  We would urge the Government to keep the diplomatic corps updated on the current situation and reestablish their confidence in the country’s safety as a tourism destination.   The travel advisories issued by various governments against travel to Thailand have a tremendous impact on tourist arrivals.  The Government’s assurance is needed to convince travelers of their safety and security, giving reassurance that measures are in place to ensure that there is no repetition of last year’s airport closure.
    
2. Charge Reductions by Airports of Thailand Public Company Limited
   AOT, as operator of Suvarnabhumi International and Bangkok International Airports, is the provider of essential services to airlines operating here.  In the past airlines have not always found AOT to be open for dialogue, but their response after the airport closures has been positive and they have granted a 20% reduction in the current landing fee and waived the parking fee for scheduled flight parking not exceeding 24 hours, effective from 1st February 2009 to 30th September 2009.  This reduction is very much appreciated, as is the news that the reduction may be increased to 30% and extended to the end of this year, but given the current situation it is hoped that they will extend the period of reduction to 30th March 2010. Similarly AOT has granted a 10% reduction in rental fee and/or building service charge from 1st January to 30th June 2009, and it is hoped that this reduction will be continued until 30th March 2010.
    
3. Charge Reductions by Aeronautical Radio of Thailand (Aerothai)
   Aerothai is another essential service supplier, and while they have been open to dialogue during the past year, they claim to be unable to effect any reduction in the unit cost charged to airlines.  In the current situation we would ask them to carefully review their operations to see if there is some way to offer at least a temporary reduction in charges.  A more transparent charging schedule would also be appreciated, since the current unit charge is difficult to understand and suggests that airlines operating into Suvarnabhumi International Airport may be paying charges to supplement Aerothai’s revenues from less productive airports, which is contrary to the ICAO international principle that airlines should pay only for services which they use.
    
4. Immigration overtime charges
   Other airport costs which are not usually borne by airlines include, for example the Immigration overtime fees.  Suvarnabhumi Airport is operated as a 24 hour airport, and yet Immigration facilities are provided only from 0830 – 1630 on weekdays.  
   
   Airlines must pay an overtime charge for the other 16 hours per day, plus all day on weekends and public holidays.  This is based on Government legislation which is 30 years old, and is an area which needs Government intervention.  However, if this legislation cannot be updated, then this cost could be paid from the passenger service charge which is collected by the AOT.  
    
5. Suvarnabhumi International Airport Phase II expansion
   After some initial difficulties, Suvarnabhumi Airport is proving to be an airport capable of fulfilling its mission to be a major aviation hub in the region, but in order to achieve its full potential it must start now to prepare for future expansion. There are already signs of expansion, even in the current situation, as Bangkok will soon be receiving its first A-380 aircraft. Airlines around the world have been grounding aircraft due to the global economic crisis, and now the outbreak of H1N1 flu is another factor impacting on airlines worldwide, but there are also indications that airlines from some areas have been planning to increase frequencies to Thailand, and it is expected that after a period of contraction there will be a resurgence of growth in the airline industry worldwide.  According to AOT, if Phase II is started now it will be ready by 2014, so it is imperative that Phase II is started as soon as possible, since Suvarnabhumi Airport is already close to full capacity.   Additionally there are new airports opening soon, e.g. Ho Chi Min, and Singapore and Kuala Lumpur are expanding aggressively, and will try to capture traffic from Bangkok.  If traffic moves from Bangkok to other regional airports due to congestion at Bangkok it will be very difficult to regain it.  Currently there are only 51 contact gates at Suvarnabumi Airport, and the reliance on bus gates is increasing connecting times due to the extra time needed for cargo transfer and essential inline screening of baggage, which disadvantages Suvarnabhumi as a hub, and is another reason by the second Phase expansion is urgently needed.
    
6. Interim terminal capacity expansion at Suvarnabhumi International Airport
   There are ways to reduce congestion and increase terminal capacity during the interim construction period through the installation of self-service check-in kiosks that are common now in most major airports, and by encouraging off airport checkin by internet and at the city terminal when the rail link comes on line.  Authorities might offer incentives and promotions to passengers to encourage use of the city terminal from its opening day, while hotels might provide complimentary shuttle services to the city rail terminal to encourage its use and reduce terminal congestion at Suvarnabhumi.  
    
7. Slot Management at Suvarnabhumi International Airport
   Efficient slot management can maximize available capacity.  Incentives could be offered to those airlines prepared to move from the peak periods of 0700-0900, mid-day and 2100 – 0200, and new entrants willing to utilize off-peak slot times.  This would help spread traffic more evenly throughout a 24 hour period.  
    
8. Single Airport Policy
   It is the firm belief of BAR that a single airport policy is the only way to achieve hub status for Bangkok.  Even if Don Mueang Airport remains operational, it is almost impossible to split traffic in such a way that it will relieve Suvarnabhumi during the peak periods while still maintaining the connectivity needed for a hub airport.  However, should Don Mueang Airport remain operational the BAR members would need assurances that there would be no cross subsidization of costs between airports, since this would also be contrary to the ICAO principle.
    
9. Expenses Incurred during Closure of Airports NOV08
   The closure of Bangkok Airports in November last year was a major setback for the local aviation industry, which incurred substantial expense in assisting passengers affected by the closures, and suffered even more in terms of lost revenue and business opportunities.  At the invitation of the Ministry of Tourism and Sports BAR members submitted an estimate of over baht 85 million for actual documented expenses incurred in Thailand to assist affected passengers.  At a meeting on 10th March at the Ministry of Transport it was agreed that this claim was in principle justifiable, and it should be passed to the Cabinet for further consideration.  A positive decision by the Cabinet on this matter would be a very positive show of support for our industry.  At the same time, at the request of the Ministry of Transport, BAR submitted an estimate of the overall losses suffered by its members, excluding those airlines based in Thailand, in the amount of almost baht 5 billion, which gives an indication of the magnitude of the damage resulting from the airport closures.

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