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Transport Ministry Orders Aeronautical Radio to Cut Service Fees by 30% to Support Airlines Pushes for New MD Appointment Resolution

Governmentpolicy06 May 2026 15:32 GMT+7

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Transport Ministry Orders Aeronautical Radio to Cut Service Fees by 30% to Support Airlines Pushes for New MD Appointment Resolution

“Patthapong”,Patthapong highlighted policies to elevate Thailand’s airspace management to a World-class Aviation Hub, while supporting airlines by cutting air navigation service fees by 30% and extending credit terms by 30 days. He expects these measures to lead to cheaper airfares. He also ordered AEROTHAI to urgently resolve the appointment of the new managing director, as the Shinawatra-affiliated candidate passed selection but faced complaints.Appeal,leading AEROTHAI to hesitate signing the contract.

Mr. Patthapong, Patthaprasit, Deputy Minister of Transport,revealed after delivering operational policies to the Aeronautical Radio of Thailand (AEROTHAI) that he instructed the agency to expedite elevating airspace management to drive Thailand toward a World-class Aviation Hub. Simultaneously, to reduce airline costs operating in Thailand, he proposed thatAEROTHAI reduce the cost burdenon airlines alongside implementing Air Traffic Flow Management (ATFM) to manage flight density and reduce delays, thereby lowering airlines’ fuel consumption.This addresses urgent issuesand boosts liquidity for operators amid ongoing volatility in the aviation sector due to energy fluctuations.

Additionally, he instructedAEROTHAI to focus on stimulatingcash flow in the industry by implementing cost-cutting measures for airlines, including a 30% reduction in domestic air navigation service fees.The fee reduction is 30%.At the same time, he mandated extending credit terms by allowing airlines to pay 50% of fees on schedule,with the remaining balance deferred by 30 days during May–June 2026 to improve liquidity for airlines affected by international conflicts and volatile energy prices, ensuring continuity of service and Thailand’s competitiveness..

Meanwhile, Mr. Surachai Nuphrom, Deputy CEO and Acting CEO of AEROTHAI, added that to enhance airspace capacityand flight routes, to increase volume and efficiency, AEROTHAI has redesigned airspace usageand continuously improvedflight route structures by introducing new routes and developing existing ones into direct routes that reduce distanceand flight time,with cooperation from regional countries, reducing fuel consumption and airline costs while upgrading capacity to handle future flight volume increases.Two projects planned for completion by 2026 include:

1. The NAN-SAGAG route, a collaboration among Thailand, Laos, and China to shorten flight distance and connect Thailand to southwestern China economic hubs such as Kunming, Guiyang, Chengdu, Tianfu, Chongqing, and Xi’an via Laos. Negotiations with China and Laos have concluded, and formal announcement is expected this year.

2. The Direct Route project is a pilot for overflights in Thai airspace using Performance-Based Navigation (PBN) technology to reduce flight distance. This reduces fuel use and allows airlines and airspace users to better plan flights in advance.Additionally, 

management practices include continuous step climbs without stopping, significantly reducing fuel consumption by using air traffic control tools that enable immediate landings without holding patterns, saving fuel and improving traffic flow.

Mr. Surachai stated,that as AEROTHAI lowers service fees,

flight numbers are expected to increase, maintaining revenue levels but improving airline liquidity. Lower costs for airlines should also translate to lower passenger fares.Given rising fuel prices due to the Middle East conflict and the low season, Thailand averages about 2,200–2,300 flights daily, compared to a normal average of about 2,400 flights daily. The top three busiest airports are:1. Suvarnabhumi Airport,2. Don Mueang Airport,and 3. Phuket Airport.

However, despite stable flight numbers, it is uncertain whether flights are fully booked.“AEROTHAI previously forecasted flight growth for 2026.Under normal conditions, growth would be 6-7%, but due to the war, growth is expected to be only 1-2% compared to 2025, or in the worst case, a slight decline of 0.1-0.01%. If conditions improve, growth could reach 3%. Thus, flight growth this year is below normal,” Mr. Surachai said.The reporter added thatthe selection process for the new AEROTHAI CEO is still under review due to about 5-6 complaints covering the recruitment process and whether candidates meet selection criteria. The selected candidate awaiting contract signing is Mr. Mekhin Phetpholai, a former senior executive at Voice TV and former CEO of Airports of Thailand Public Company Limited (AOT).“The complaints were submitted through the company’s complaint center during the government transition period, around early this year, requiring thorough verification before contract signing.” If the complaints are substantiated, the entire selection process will be canceled and restarted from the application phase to ensure fairness and avoid future litigation, as has happened with other state enterprises.

Currently, the matter is under consideration by the subcommittee and related boards, who will expedite fact-finding and report to the AEROTHAI board soon to decide whether to proceed with the contract or cancel the recruitment.Regarding concerns about organizational management without a permanent director, AEROTHAI stated that five deputy CEOs are currently handling responsibilities with clear systems in place, allowing operations to continue normally under acting authority without disruption or adverse effects on strategic operations.

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