View Full Version : THAI Airways may raise fuel surcharge soon

Kanok Karn
28th February 2011, 12:15
Thai Airways International Plc (THAI) may have to increase its fuel surcharge due to impacts from the continuously increasing oil price, which is resulted from the current unrest and political demonstrations in the Middle East.

THAI President Piyasvasti Amranand admitted that the aviation business is being affected by the rising crude oil price in the world market. He attributed the problem to expanding riots in the Middle East, such as those in Libya.

Mr Piyasvasti further stated that the crude oil price currently reaches 130 US dollars per barrel, which is higher than estimation and tends to rise further. He noted that the situation posed a risk factor deserving close monitoring.

The president admitted that THAI might need to adjust its fuel surcharge following the rising oil price although it has insurance policies against oil price fluctuations. The company just raised its fuel surcharge on 17 February 2011.

Apart from the fuel surcharge adjustment, Mr Piyasvasti said the company might have to reconsider its plan to purchase shares in its low-cost airline Nok Air from Krung Thai Bank at 30 baht per share.


news from NNT