News Forum - Budget airlines push jet fuel tax cut to reduce airfare prices

[Thaiger]

Budget airlines have issued an appeal to the Finance Ministry to reduce the excise tax on jet fuel, to help mitigate their operational costs with the fragile state of the industry. Following a meeting with representatives from low-cost airlines, Deputy Finance Minister Julapun Amornvivat reported that the carriers discussed economic challenges and reiterated their commitment … …

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[Vigo]

No need to cut the jet fuel tax. The tax doesn't have a significant impact upon pricing. 2125 baht roundtrip for DMK-CNX is ridiculously low. Using Thai Lion as an example, Included in the 2125 baht total cost is  Thailand's Passenger Service Charge of 260 baht and Thai Lion's Carrier Imposed Surcharge of 900 baht. 

Jet fuel is reportedly 20 baht a litre (tax incl.) and the aviation fuel tax is  reportedly 4.726 baht per litre. What do these airlines expect? During covid the rate was cut to 0.20 baht per litre.  There is no need to cut the tax. If anything the tax should be increased to help cover the cost of supporting the aviation infrastructure investment needed.

 

 

[Fanta]

10 minutes ago, Vigo said:

Jet fuel is reportedly 20 baht a litre (tax incl.) and the aviation fuel tax is  reportedly 4.726 baht per litre

Excellent. I might start running my big bike on high octane jet fuel. What could possibly go wrong? 

[Ramanathan.P]

Just try to reduce the wastages in $$$$ in the management of the airlines. Can also reduce the director's fee and remunerations until the airline started making profits. Directors are not really contributing anything to the management. Just sitting there and talking nonsense only most of the time. 

[Guest1]

Deleted because of wrong math.