Thailand will provide 24 billion Baht loans to seven local airlines

Compilation : Hush, Thailand Headlines / Sources : Prachachat, Thairath, bangkokbiznews, Minhangshi

Ref : http://www.minhangshi.com/m/h5/detail/8662091 

Translation, editing : Gan Yung Chyan, KUCINTA SETIA

According to Thai media reports, Thai Prime Minister's Office Spokesperson Anucha stated at the press conference of the “Results of the Aid Policy Discussion Meeting between Prime Minister Prayut and 7 Airlines” that Prime Minister Prayut has listened to the airline's request and agreed to provide 240 100 million baht soft loans, exemption or reduction of handling fees.

On 28 August, General Prayut, Prime Minister and Minister of Defense of Thailand, met with senior officials of seven airlines in Thailand to hear about the assistance needed by the airlines under the influence of the SARS-CoV-2 epidemic. The seven airlines include Thai Smile Air, Lion Air, VietJet Air Thailand, Bangkok Airways, Nok Air, Thai AirAsia and Thai AirAsia X.

Anucha, spokesman of the Prime Minister's Office of Thailand, stated at the press conference that the three demands made by the airline and accepted by Prime Minister Prayut are:

1. Provide soft loans totaling 24 billion Baht. The airlines negotiated with EXIM Bank are the main beneficiaries of this measure. Prime Minister Prayuth has also ordered the Export-Import Bank and other banks to participate. The Ministry of Finance will be responsible for this.

2. The request for an extension of the deadline for jet fuel tax cuts still needs analysis. It is reported that the airline has applied for an extension of the jet fuel tax reduction deadline for one year, which will be extended to September 1, 2021, and the fuel tax will be stabilized at 20 sadangs/liter. The original fuel tax standard was 2.762 baht. The undersecretary of the Ministry of Finance said that it is difficult to implement the matter because the fuel tax has been reduced by nearly 70%. It was reported at the press conference that in view of the current decline in world oil prices, and in the "Let’s Travel Together" stimulating tourism project, the subsidy for air tickets has been increased from the original 1,000 Baht to 2,000 Baht, which is also a support policy for airlines.

3. Exempt or reduce the operating fees imposed on airlines until March 2022, such as landing fees, downtime fees, passenger service fees, etc.