Thai Airways increases fuel surcharge by 15 to 20 %

Thai Airways International (THAI) has decided to raise its fuel surcharge by an average of 20% on all international flights and 15% on all but one domestic route, effective from Monday.

The move comes in parallel with state efforts to curb transport fare increases, focusing on land transport, bringing about an urgent meeting of three ministries _ finance, transport and energy _ today to discuss ways to cut fuel costs.

However, he said, the hike would cover only half of the actual increase in fuel prices as the national carrier did not want to pass on the entire cost burden at once to passengers.

THAI’s current fuel surcharges are $25 on flights less than two hours; $30 on flights from two to three hours; $35 on flights from three to four hours; $55 on flights from four to eight hours; $95 on flights from eight to 14 hours; and $105 on ultra-long-range flights (more than 14 hours).

THAI’s fuel surcharges were last adjusted on Jan 10.

Other Bangkok-based airlines, both low-cost and full service carriers, are mostly to follow suit in raising the fuel surcharges at the same time. (Bangkok Post)

The government can bark, cheat, postpone, subsidize… market laws are stronger. Always.

Oil is going up. Therefore, prices of products and services using oil will go up too. We don’t like it, for sure, but we have to cope with it.

Until now, following short term political obsession, the authorities are just trying to postpone the pain.

Rather than to try to find innovative solutions, to try to curb oil consumption for instance.

That’s the fundamental contradiction of Thailand (but many other countries too) : it wants to increase GDP (with the famous “stimulus packages”), to increase consumption, to increase exports, it wants the people to buy cars, lot of cars to boost the car “hub industry” etc. … and meanwhile it refuses to see the reality.

Choices must be made. And it’s precisely what the authorities don’t want to do.

The idea to have strong growth, strong exports, low interest rates, no inflation, increased consumption but no debts, weak currency for exports and strong currency for imports, cars but not high gasoline prices, cheap food but rich farmers etc. is just wishfull thinking in the current situation.

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.


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