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CAAT “likely” to delay next ICAO review to 2017 and THAI fails to find suitors for A340s
February 19th 2016
On Monday, the Civil Aviation Authority of Thailand (CAAT), a government arm under the leadership of Chula Sukmanop, Read More » said it would likely ask the International Civil Aviation Organization (ICAO) to delay its next review of the country’s civil aviation safety standards until early 2017 as it needed more time to improve the qualifications of Thai auditors.
ICAO downgraded Thailand in June 2015, followed the by the U.S. Federation Aviation Administration’s (FAA’s) downgrade in December.
"The next review by ICAO should be postponed to early next year from late this year," said Amphawan Wannako, deputy director at the CAAT. Newly hired safety auditors had to be sufficiently trained if they to complete a review of the 41 Thai-registered carriers and re-certify them by November, she said. To assist with training, Chula said in January that the CAAT would hire CAA International, a globally recognised wholly-owned subsidiary of the UK Civil Aviation Authority.
In the past two weeks, the CAAT has grounded Asian Air, Business Air and City Airways for safety and financial contraventions.
The Bangkok Post reported Asian Air was grounded after the Central Bankruptcy Court in Bangkok ordered the carrier's assets frozen at the behest of an undisclosed MRO creditor. Asian Air said it was exploring all avenues to 'resume its operations as soon as possible' with co-founder, David Srichai-udom, saying it had recently reduced its debt from 100 million ($2.8 million) to ten million baht.
On City Airways, the CAAT said continued doubts about the airline's safety culture had forced it to ground its only active aircraft, a B737-400, used for regular services between Hong Kong, Bangkok and Phuket, respectively. City Airways is reported to have significant debt with Aeronautical Radio of Thailand (Aerothai) and aircraft lessors, in addition to being behind in paying pilot wages.
The case against Business Air is similar. Its only aircraft – a B767-300ER – remains grounded on account of a one billion baht ($28 million) debt owed to Aerothai.
All three carriers face revocation of their respective Air Operator Certificates should they fail to address the flagged safety and operational concerns within a month.
At Thai Airways International (THAI), the government has suggested the flag carrier and its budget subsidiaries, THAI Smile and Nok Air, expand their Southeast Asian route networks, with Bangkok serving as a hub for the region, particularly for travel to Vietnam, Laos, Cambodia and Myanmar – the markets with the highest growth potentials.
The recommendation was handed down to the national carrier, which has been cutting routes to stem years of operating losses, when Deputy Prime Minister, Somkid Jatusripita,. visited the airline headquarters in Bangkok on Monday. "THAI could be the real gateway of ASEAN," he said.
The minister said THAI was exiting its long period of losses. THAI will present its full-year 2015 results on February 29. It posted a loss of 18 billion baht in the first nine months of 2015, compared with a deficit of 9.2 billion in the year-ago period, at a time when record low fuel prices enabled carriers worldwide to produce black ink.
THAI CEO, Charamporn Jotikasthira, said the carrier would adjust its aircraft acquisition and route plans according to the ministerial recommendations. Apart from ASEAN, THAI would expand its markets in China, Turkey and Iran, he said.
THAI has still been unable to sell – or afford to fly – its A340s. “The fuel consumption is so uneconomical,” Charamporn said last week. “All new planes have two engines that can fly as long as the four engines with much better fuel efficiency.” Some of the A340s, including four -500s and six -600s, have been grounded since 2012.
