Airport traffic falls 11 % in october

Passenger flows through airports operated by Airports of Thailand Plc (AoT) including Suvarnabhumi last month totalled 4.23 million, 11.29% lower than in the same period last year.

Flight movements fell 11.57% year-on-year to 29,365, while freight throughput slipped 9.56% to 107,129 tonnes, according to figures compiled by AoT.

But the rate of contraction in October was less steep than the 20% drop in passenger numbers seen in September, a four-year low, which was partly a response to the prevailing political unrest at the time.

Passenger traffic in September fell 20.2% year-on-year
to 3.47 million while aircraft movements shrank 15.8% to 26,832 and cargo contracted 8.75% to 107,909 tonnes.

This is in line with the figures of international arrivals for tourism (read here).

The real test starts now with the high season. We don’t have the oil crisis anymore, but the political situation is still worrying. And of course tourism could suffer from the fallouts of the global economic crisis.

7 Responses to “Airport traffic falls 11 % in october”

  1. 1 absolutelybangkok 21 November 2008 at 12:55 am

    I wouldn’t be surprised if the newer policy on arrivals at Suvarnabhumi has to do with falling arrivals … seriously.

    Now there’s 1 single meeting point at Suvarnabhumi at the very end of the main terminal.

    Wanna pick up an arrival? Not allowed to enter 2nd floor anymore. Don’t ask why, it’s just one of those decisions around here that further complicate things without any sort of benefit.

  2. 2 FDL 21 November 2008 at 1:02 am

    TC I appreciate your ThaiCrisis blogsite spins around uniquely Thai crises caused by uniquely Thai inanities. And the global financial crisis pile on to spice, to put it mildly, Thailand’s backward awkward suicidal march to its f-u-t-u-r-e.

    What I mean is once a while can you lighten up by citing bright spots now and then. Like for example that brightening news that Santa Claus will definitely visit Thailand exactly on December 25th accompanied by Mrs. Potjaman hereself (what surname is she using right now?) will definitely redden Bangkok’s yellowed skies . . . huh?

    Then another inspiring, definitely make-my-day, speculative news that Thailand’s model-good-father Chalerm Yoobamrung will be next Thai PM if PPP is dissolved this December.

    Much obliged TC.

  3. 3 thaichris 21 November 2008 at 2:02 am

    It’s not tourism only. Have a look at that:

    With the global recession taking an increasing toll on Thailand, bringing down overseas vehicle orders, and with confidence low among domestic consumers, all automakers are considering how to ride out the storm.General Motors has made the most dramatic move so far, announcing on Wednesday that it would suspend production at its Rayong plant in December and January because vehicles on hand already have met projected demand. Its 2,000 workers will be kept on but at 75 per cent of their normal pay.

    At Toyota, a senior executive who asked not to be named said the company would cut its output during the last two months of this year, with production of pickup trucks and large cars affected. The production cut will help eliminate inventory building up during the last two months of this year. The company said earlier this week that output next year would be lower than the 570,000 vehicles estimated for 2008. Toyota began feeling the slump in the automobile market in June when its sales fell 12 per cent year-on-year to 22,499 units. Pickup truck sales were down 26 per cent because of high diesel prices but passenger cars still performed well. The slump continued until October when sales dipped 20.5 per cent to 20,532 units with pickup trucks plummeting 30.6 per cent and cars also down 2.5 per cent. The executive said it was notable that the pickup truck market remained poor even though diesel prices have fallen 60 per cent from their July peak. Another step, the executive said, would involve cutting overtime work to help reduce its expenses. If the situation became worse, the executive said, the number of subcontract workers would be slashed. The company could offer them early retirement packages or terminate some contracts. He insisted Toyota had no policy to lay off permanent staff or workers at the moment but the approach would be reconsidered if the situation became worse and started to affect operations seriously. He said he believed all automakers would cut their production targets next year as falling demand continues.

    Meanwhile, GM Thailand has announced various steps to adjust its inventory in the Thai market as well as across Asean. Addressing GM Thailand workers at a recent staff gathering, Steve Carlisle, president of General Motors Southeast Asia Operations, said the company was building a winning automaker for the long term and would focus on building sustainable success, not short-term results. However, amid the global economic crisis, the drop in sales has resulted in the necessity to reduce production to avoid an oversupply, he said. “As communicated previously, the impacts of the global financial crisis have spread to virtually every country around the world including Thailand,” Mr Carlisle said. “This has resulted in a marked cooling in consumer sentiment and tightening of credit which has in turn reduced sales both domestically and in our export markets. As a consequence, we have to look into reducing production and granting leave to some of our colleagues in the December to January timeframe. “Fewer than 2,000 staff will be granted paid leave during the period, as the plant reduces production levels to avoid oversupply. As soon as the plant resumes its normal levels of production, staff will be reporting back for duty.”

    Yongyuth Mentapao, chairman of the Federation of Thailand Automotive Workers Union, said parts suppliers had been informed by Toyota Motor Thailand that the automaker was cutting their production by 30 per cent or 45,000 units over the November-April period, citing existing huge inventory. “So far automakers have cut overtime work shifts and told staff to take some days off and paid them less.This has threatened workers that laying off staff would be seen soon,” said Mr Yongyuth, who works for NHK Spring.

  4. 4 thaichris 21 November 2008 at 3:10 am

    And another one – keep in mind, that whenever a factory worker looses his job, another two person loose there income as well (the street vendor around the corner, the motobike taxi driver, employees in the supermarket, etc.).

    About 30 factories in Ayutthaya are considering downsizing production or employment to cope with fewer orders, according to a survey by the Federation of Thai Industries (FTI).

    Tanit Sorat, an FTI vice-chairman, said that the survey conducted by its members in the central province found 30 of the 200 largest factories were considering layoffs, while 79 plants were freezing their headcount with no replacements for vacancies. As well, 13 factories have already cut their work shifts in line with the 25-30% fall in production orders from their overseas clients. “This is just the first chapter of a global recession; the real impact will be much clearer next January,” Mr Tanit said.

    According to Thaveekij Jaturajarernkul, another FTI vice-chairman, 100,000 employees are likely to lose their jobs next year as production slows. Normally, the industrial sector needs to take orders three months in advance of goods delivery due dates. “Most production now is for pre-crisis orders, but if new orders don’t start to appear, some factories will need to shut down,” Mr Thaveesak said.Ayutthaya is the sixth-largest industrial area in Thailand, with factories producing electronic goods and electrical appliances, auto parts, plastic, steel and food processing operations.

    There are five industrial estates in the province: Factory Land, Rojana Industrial Park, Saha Ratanakorn, Bang Pa-In Industrial Estate and Hi Tech Industrial Estate, with nearly 300,000 employees.

    Scaring – but maybee red or yellow feeds them. HaHaHa

  5. 5 MSB 21 November 2008 at 3:28 am

    a case of very selective reporting here TC…

    The headline could have read “Airport Traffic soars 22% in October”

  6. 6 ThaiCrisis 21 November 2008 at 6:35 am

    ->MSB. I’m confused. Thanks to explain. Why an increase of 22 % ???? You mean from september to october ? If it’s the case, it’s irrelevant : september is always lower than october. The year on year comparisons are better.

  7. 7 dooda 21 November 2008 at 7:16 am

    Kongkirt Hiranyakit, chairman of government body the Tourism Council of Thailand says that around 60,000 – 70,000 jobs in tourism industry could be loss

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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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