Downgrade For Thai Aviation Sector

News that the FAA (Federal Aviation Administration) has downgraded  Thailand’s aviation sector could impact the country’s tourism market.

A reclassification from Category 1 to Category 2  in the US could cascade to Europe and other regional markets.

Thai Airways International ceased flying to Los Angeles in October, citing financial losses.

Clearly the biggest concern for Phuket would be any disruption of flights to/from Europe, though the move comes at a time when national carrier Thai is retracting international services.

In the past Indonesia’s Garuda and Philippine Airlines both suffered harsh commercial issues during EU sanctioned safety bans.

A larger issue for Thailand’s aviation industry is if or in what form Thai Airways can reform into a profitable entity or is the writing is in the wall for the airline.

Meanwhile low-cost airline carriers, charters and a select set of legacy airlines continue to prosper on routes to and from the country.