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Thai Prime Minister Prayut Chan-o-cha on Friday told the media that he has agreed to assist the country's domestic low-cost airlines in their survival as air restrictions worldwide have grounded their aircraft during the COVID-19 pandemic.
Seven of Thailand's domestic low-cost airlines on Friday approached Prayut, to air their grievances and to submit their request for support.
"The aviation industry is suffering as much as the tourism sector, so my administration has agreed to inject 24 billion baht (771 million U.S. dollars) in soft loans for the domestic airlines, hopefully to sail through this turbulent period," said Prayut.
The seven airlines that were promised a new lease of life include Thai Air Asia, Thai Smile, Thai Lion Air, Bangkok Airways and Nok Air.
"The soft loans will only be possible if these airlines will agree to retain their staff members," said the prime minister.
There are approximately 20,000 staff members from the seven airlines whose jobs are at stake.
The prime minister also said that his government has agreed to extend the reduced excise tax to the end of March next year, the 50 percent cut in landing and take-off charges, as well as aircraft storage fees.
These tax cuts were all due to expire at the end of this year.
(ASIA PACIFIC DAILY)
