AirAsia chief Tony Fernandes has warned that higher airport fees could damage Thailand’s tourism recovery, especially for budget travellers already facing rising costs.
Tony Fernandes, chief executive of AirAsia and Capital A, is opposing Airports of Thailand’s proposal to raise the international passenger service charge, saying the timing could hurt Thailand’s tourism recovery.
Why the airport fees matter
Fernandes said the moment is especially poor because airlines worldwide are dealing with higher fuel prices, global conflicts and broader operating-cost increases. In his view, adding another layer of airport fees in Thailand would put more pressure on fares at a time when the market is still recovering.
He asked AOT to delay any new rates by at least one year, arguing that airlines and the tourism sector need more time to rebuild demand. His message was blunt: the priority should be to protect demand, not weaken it.
Budget travellers are part of the equation
Fernandes stressed that budget travellers are important to Thailand’s economy because they generate significant revenue. He warned that if travel becomes too expensive, some passengers may decide not to fly at all.
AirAsia and other carriers are already being forced to gradually raise ticket prices because of higher fuel costs. Fernandes said an additional increase in airport fees would further affect travellers and, in turn, overall tourism demand.
He argues the current structure is unfair
The AirAsia chief also said the current airport fee structure is unfair to low-cost carriers, which pay rates similar to traditional airlines even though they use airport facilities differently.
He proposed a more flexible PSC system based on airline type and airport category, saying that would improve Thailand’s tourism competitiveness. He also called for faster development of logistics infrastructure, cargo operations and maintenance, repair and overhaul, or MRO, facilities. In his view, those areas could create new revenue streams instead of relying on higher passenger charges.
Transport ministry keeps fares in check
In a separate statement, Thailand’s Ministry of Transport told airlines to keep planned ticket-price increases below the legal limit. The ministry’s move responds to rising fuel costs, which have increased operating expenses across the aviation sector.
For travellers, the immediate issue is not only the proposed airport fees themselves but the broader direction of airfare pricing in Thailand. If the cost of flying keeps climbing, Fernandes warned, some people may see travel as too expensive and stop flying altogether.
