InfoQuest (June 22, 2021) -- According to Mr. Nitinai Sirismatthakarn, President of the Airports of Thailand, the "Phuket Sandbox project" will start on July 1, and Phuket be reopened to foreign tourists. Based on currently available data, it's predicted that an average of 18 foreign flights will go to Phuket every day, accounting for 5 percent of pre-COVID daily flights (380).
At the beginning of the reopening, airlines have modest expectations for the number of tourists as it is not the previous High Season, which is expected at the end of this year.
The Airports of Thailand has been well prepared for greeting foreign tourists. But it is not clear whether major airlines and travel agencies have been on call. Thai Airways, still in the recovery phase, has not resumed the operation of its ground service and freight service. Numerous tourist spots, including shops and stores, outside the airport are still out of business.
The Airports of Thailand is not yet able to predict the results of the project. In case of the resurgence of the pandemic during the implementation of the project, it will exert a negative impact on the tourism sector, which will last until the High Season from this October to January of the next year.
"In the long run, the business is expected to recover by 50 percent as demand picks up rapidly. Because of the disruptions to the supply chain and the limited supply capacity, the exploding demand can’t be satisfied if the airspace is completely reopened. For example, Thai Airwaysand Air Asia, suffering great loss, may not be able to recover." Nitinai said.
Nitinai predicted that it will take another two years for Thailand's aviation industry to return to the pre-COVID level, at least one and half a year. Anyway, airlines need to purchase aviation fuel and charter aircrafts at least one year in advance. The Airports of Thailand also can't be immune from the pandemic affect, and fails to charge management fees as usual. Especially for Suvarnabhumi Airport, more than half of the flights were with Thai Airways. Therefore, this authority also needs to keep an eye on the pandemic dynamic.
In Fiscal Year 2022 (from October 2021 to September 2022), if the tourism sector is still in the doldrums, it will be cash-starved in the whole year. The Airports of Thailand decided to postpone the reopening of Satellite 1 where about 60 planes are transferred to the satellite tower.
The Airports of Thailand currently hold 22 billion baht of working capital. It's expected that the authority will apply to the Board of Directors for a short-term or long-term borrowing of 25 million baht in Fiscal Year 2022 in the form of bonds or loans based on the business recovery then.
Source: InfoQuest, by Saowalak Ouypron/Sasithorn Simaporn, translated by Xinhua Silk Road
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
A single purchase
