AirAsia founder and CEO Tony Fernandes has opposed Airports of Thailand’s (AOT) proposed increase to the international passenger service charge (PSC), warning that higher airport fees could damage Thailand’s tourism industry during a difficult period for global aviation.
Fernandes, chief executive officer of Capital A, said the timing was inappropriate as airlines worldwide continue to face pressure from rising fuel prices, global conflicts, and increasing operating costs.
He urged AOT to delay the new fee structure for at least one year to allow airlines and the tourism sector more time to recover.
“The most important thing is to protect demand,” Fernandes said.
He noted that budget travellers were very important to the Thai economy, adding that they injected a large amount of money into the economy and risked being driven away by higher costs.
According to him, airlines globally are already being forced to gradually increase ticket prices due to higher fuel costs, with AirAsia also having no choice but to raise fares.
Any additional increase in the Thailand airport PSC would place more pressure on travellers and directly affect tourism demand.
He warned that if prices continued to rise, some passengers could eventually decide the cost was too high and stop flying altogether.
“If it is a disaster for AirAsia, it is also a disaster for Thai tourism.”
Fernandes also argued that the current airport fee structure was unfair to low-cost carriers, as they pay PSC rates similar to full-service airlines despite using airport facilities differently.
TravelNews reported that he proposed a more flexible PSC structure based on airline type and airport category to improve Thailand’s tourism competitiveness.
Fernandes also called for faster development of logistics infrastructure, cargo operations, and maintenance, repair and overhaul (MRO) facilities to create new revenue streams instead of increasing passenger fees.
“We need to be smart to survive and get through this oil crisis,” he stressed.
In a separate aviation development, Thailand’s Ministry of Transport ordered airlines to keep planned airfare increases under the legal airfare price cap after rising fuel costs pushed up operating expenses across the aviation sector.
The story AirAsia CEO warns airport fee hike could be ‘disaster’ for Thai tourism as seen on Thaiger News.
