Given that an international aviation organization and a foreign regulator downgraded the Thai aviation sector after comprehensive assessments, it is becoming clear that the stakeholders in this industry are working out to ensure that the Kingdom regain its glory and conquer the Southeast Asia region. Is Thailand putting in significant efforts in attaining the desirable rating in the aviation industry? Are their realistic chances for Thailand to become the transport hub of SE Asia?
Efforts to regain the upgrade
Since June last year, after the downgrade of the Thai aviation industry from Category 1 to Category 2, many experts predicted a doomsday scenario for the sector. The Prime Minister, Prayut Chan-O-Cha, is at the forefront in ensuring that effective reforms are undertaken in the sector to meet the required international standards. He previously told reporters that all the fundamental elements must be fixed and improved. In the recent months, the Thai government has seriously put more effort into this particular debacle by directing the relevant authorities to address the challenges in rebuilding confidence in the sector.
The Cabinet set aside BT271.5m ($7.6m) for enhancing the safety measures in the aviation industry that would consequently help in achieving benchmarks that conform to the International Civil Aviation Organization’s (ICAO) stipulated regulations. Plans for formulating revised policies to govern the issuance of air service licenses as well as air operating certificates are underway.
Currently, a considerable number of staff has undergone training to ensure they are up to date on the latest protocols of international aviation. There are others undertaking various courses related to aviation, who upon completion will be deployed in several departments in Civil Aviation Authority of Thailand (CAAT). The director of CAAT, Chula Sukmanopm remained tentative that the reforms would yield instant results. ”It is likely that the ICAO red flag would not be withdrawn this year. Nonetheless, we have the plans of inviting the officials from the agency to carry out a new audit by the end of the year”.
Role of Stakeholders
Thai business leaders are instrumental in pressuring the government to ensure that it complies with the regulators’ demands. Thailand is regarded as a central geographic location, which is key to making it the aviation hub in the region. According to the Director of Thai Aviation Industries, Prakit Skunasingha, Thailand has all that it takes to become the regional transport hub. He said, “It is well accepted that Thailand is in a central geographic position to foster regional trade. With the right aircraft technology, such as the Jet Stream system used for transcontinental travel, flight operators could transport passengers from Europe to Japan and use Thailand as a hub.”
With the number of tourists and visitors coming to Thailand projected to swell by 6 % annually, it can is critical that the government and aviation bodies affirm their obligation to the highest international standards of aviation. Unquestionably, it is significant for investors to ensure that they come up with approaches that would make the aviation industry in this country to grow. This achievement can never come on a silver platter. It calls for a strategic planning and proper execution of ideas. Stakeholders need to realize that the aviation industry is fast growing and only a partnership approach to development would allow it to become the hub in South East Asia. The challenges that would hinder Thailand from becoming the aviation hub need to be jointly addressed by all the stakeholders for it to become a success.
In the next decade, expectations are high that the number of flights in Thailand will double. ”I must admit, though, that in order for Thailand to become an aviation hub of the region, we must overcome the challenges that we face in human capital development.” Tisanu Ratanarat, CEO of SFS Aviation CO. LTD asserted in regards to the structures that need to be put in place for the realization of this achievement.
Impact of ASEAN Economic Community (AEC)
Launched in December 2015, the AEC economic block has proven to be ideal for the creation of a virtuous cycle in spurring regional trade and increasing production and distribution systems. AEC is indeed opening opportunities for the growth of the aviation sector in Thailand. According to Kasikorn Research Centre, a local research firm, this regional economic organization will soon transform the local air transport market. In regards to this issue, Prakit Skunasingha said “In the next ten years, the number of flights will double. So if we do not turn our attention to the development of infrastructure and the necessary human capital now, we will lose significant opportunities and revenue.”
Tourism in Thailand is also expected to hit the highest peak in the coming years, indicating that demand for Thai aviation services will not decline any time soon. Air carriers are attempting to establish new far-reaching route networks that connect Southeast Asia and other regions. The economy of AEC block is fast growing thus giving Thailand the exclusive opportunity for becoming the transport hub of SE Asia.
The central geographical location of Thailand and tourism influx also work to the advantage of developing its aviation industry. It presents an opportunity for establishing various institutions that offer aviation related programs. ”Considering the sheer volume of tourists arriving in Thailand each year and our central location in the region, we have the perfect place to have world-class pilot training facilities to accommodate the growth in the global air travel,“ says Ratanarat. It helps in boosting the objective and ambition of becoming an SE Asia hub in aviation and subsequently, guaranteeing the future of the Thai aviation sector.