Thai airline asks for Avtur tax cut, Brent price breaks US$105

Thailand - Thai airlines are starting to urge the government to cut aircraft fuel taxes after world oil prices jumped sharply. They assess that operating costs are getting heavier and it is difficult to continue to be borne alone.

The Emirates 24/7 report, quoted Tuesday, March 17, said the Thai Airline Association on Monday warned that the aviation industry was facing great pressure due to rising energy prices triggered by the war in the Middle East. For Thailand, this issue is sensitive because the aviation sector is one of the main pillars of the economy and tourism.

The president of the association, who is also the CEO of Bangkok Airways, Pudthipong Prasarttong-Osoth, said government intervention was needed to withstand shocks. According to him, tax relief on avtur needs to be given so that travel activities continue to move when fuel costs continue to rise.

The demand comes as Brent crude traded around $105 a barrel in Monday's trade. Reuters and the Associated Press also noted that Brent was in that range after soaring more than 40 percent since the war broke out on February 28. Although it had dropped slightly from the intraday high, the price remained high and the market was still not calm.

For airlines, this kind of oil price increase is immediately felt. Avtur is one of the largest costs in flight operations. When fuel costs rise, the airline's room for maneuver also narrows. That's why the demand for tax cuts is the fastest way they push to the government.