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JUNE 2015

Week 23

Airline News

Thailand’s aviation regulator pleads for time

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June 1st 2015

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Thailand’s Department of Civil Aviation (DCA) has asked Japan’s Civil Aviation Bureau (JCAB) for an extension on the grace period, which ended on May 31, to fix the “significant safety concerns” raised in the International Civil Aviation Organization’s (ICAO) audit in January. Read More »

At press time it was unclear if JCAB had complied with the request. Uncertainty surrounds the 90-day grace period, until June 2, that ICAO has given the DCA to fix Thailand’s safety issues, including non-compliance with ICAO’s standards in operator certification, personnel training and licensing and transportation of hazardous goods.

In recent weeks, the DCA launched initiatives to regain public confidence, comprising re-evaluation of 41 licences it has granted to Thai airlines, designing a handbook on regulations and practices and more than quadrupling the number of DCA inspectors from nine to 40. It also said it would set up two aviation bodies, the National Civil Aviation Institute (NCAI) and the Air Transport Department (ATD), to manage aviation and infrastructure safety compliance.

Thailand’s flag carrier, Thai Airways International (THAI), last week outlined its aircraft delivery schedule to 2018. It will receive two A350-900s in 2016, five in 2017 and five in 2018; two B777-300ERs, as well as a B787-8, in 2015; two B787-9s in 2017 and two A320s this year for subsidiary, Thai Smile. THAI has recently been profitable, posting a first-quarter net profit of 4.54 billion baht as its restructuring and the lower jet fuel price started showing on its balance sheet. The encouraging results followed accumulated losses of 29.6 billion baht for the previous seven quarters.

However, the worst could be yet to come for THAI and the other Thai carriers as the possibility of a U.S. Federal Aviation Administration and ICAO safety downgrade for Thailand could “seriously affect [its] aviation industry” THAI said in a statement. The regulators are expected to publish their assessments by June 30.

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