IATA tries to limit Thai airport costs
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The International Air Transport Association (IATA) has taken measures to ensure that any extra costs resulting from the recent closure of Bangkok’s airports are not incurred by airlines, the Bangkok Post has reported. Airlines are reported to be worried that Thailand’s airport operator, Airports of Thailand (AoT) may have to raise airport charges to offset losses resulting from the eight-day closure by anti-government protesters.
To head-off any such ramifications, IATA has reportedly outlined its stance in a letter sent last week to Serirat Pasutanond, Acting President of Airports of Thailand (AoT).
Jeff Poole, IATA’s Director for Industry Charges, Fuel and Taxation at IATA, told the Bangkok Post; “We want to see the costs of disruption and revenue ‘ring-fenced’ either by AoT or the Thai government. We don’t want to see those charges coming to the airlines.”
IATA also suggested that the Thai government could follow the precedent set by the US government, which compensated airlines after the 9/11 terrorist attacks.
Thai Airways, which bore the brunt of the impact with losses resulting from the airports closures estimated THB20 billion (US$576 million), has already resolved to sue leaders of the anti-government protesters, the so-called People’s Alliance for Democracy (PAD), for compensation equivalent to its disruption costs and loss of future revenue.
Meanwhile, last week the AoT board also decided to sue the PAD, seeking compensation for the damage caused to all six of its airports including Suvarnabhumi, estimated at THB64 million (US$1.8 million) a day, plus unspecified lost opportunity costs, the report added.
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