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One of the recent events creating turbulence in the Thai aviation industry was an early warning that Thailand’s air safety credentials could be downgraded by the International Civil Aviation Organization (ICAO). EIC believes a red flag for Thai aviation safety could create a ripple effect causing international aviation agencies to reevaluate the safety of Thai aviation facilities.
If Thailand’s air safety rating is downgraded by international aviation agencies, Thai airlines will face the loss of goodwill, higher operating costs, and increasing competition from foreign carriers. Charter carriers will lose out as their operating licenses are issued on a case-by-case basis. Full service airlines and medium haul low cost carriers will experience setbacks in their growth plans from the inability to establish new routes or increase their flight frequencies, while domestic low cost carriers will remain least affected. In addition, it could take at least 4 years and require the efforts of the public and private sectors to get Thailand’s air safety credentials reinstated.