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International Air Transport Association (IATA) Cautions on Thailand's Aviation Hub Ambition

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International Air Transport Association (IATA) Cautions on Thailand’s Aviation Hub Ambition

by Daisy D.
06/10/2024
in Global Trade, Market Trends

The International Air Transport Association (IATA) has offered insights into Thailand’s aspiration to become the leading aviation hub in the region by 2030. While acknowledging Thailand’s potential and popularity as a tourist destination, IATA Director-General Willie Walsh suggests that achieving this goal within the proposed timeframe might be overly ambitious due to global supply chain disruptions.

Prime Minister Srettha Thavisin’s commitment to making Thailand the premier aviation hub by 2030, under the “Ignite Thailand” vision, has drawn attention. However, Walsh points out that the necessary long-term investments, especially in new aircraft orders, could prolong the timeline beyond 2030.

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One significant challenge highlighted by Walsh is the difficulty in acquiring new aircraft, particularly wide-body jets, from major manufacturers like Airbus and Boeing. Delays in aircraft deliveries have become commonplace, impacting the aviation sector globally.

Marie Owens Thomsen, senior vice-president of sustainability and chief economist at IATA, underscores the challenges faced by the aviation industry, noting that global jet deliveries have been reduced due to supply chain disruptions.

Xie Xingquan, regional vice-president for North Asia and ad-interim for Asia-Pacific at IATA, points out regulatory risks in Thailand, including proposed consumer protection laws that could impose additional burdens on airlines.

Despite these challenges, Xie remains cautiously optimistic, suggesting that with government efforts and attractive airport incentives, Thailand could potentially emerge as a significant aviation hub in the Asia-Pacific region.

Efforts to enhance safety, such as the implementation of automatic channels for international travelers and initiatives like the Turbulence Aware platform launched by IATA in 2018, underscore the importance of addressing various aspects for the aviation industry’s growth and efficiency.

While Thailand’s ambition to become a leading aviation hub remains steadfast, the journey towards achieving this goal may necessitate a reassessment of timelines and overcoming various hurdles in the evolving aviation landscape.

Stay current with supply chain report news at The Supply Chain Report. For international trade resources, visit ADAMftd.com.


#IATACautions #ThailandAviationHub #AirTransportAmbition #GlobalAviation #SupplyChainNews

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