Flying to the new era of

THAI AVIATION

Overcoming today’s challenges and tomorrow’s needs

Bangkok, 13th December 2021

Suttipong Kongpool, Director-General of CAA Thailand

 The Pre-COVID Era

97.8 MILLION JOBS

$ 5.7 TN worldwide economic activity 2036

65.5 MILLION JOBs

2018 $ 2.7 TN worldwide economic activity
Source: ATAG (Air Transport Action Group)
 World passenger traf c collapses with unprecedented decline in history

Source: ICAO (ICAO Air Transport Reporting Form A and A‐S plus ICAO estimates.)
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 Moderate recovery in domestic travel while international travel remained stagnant

Source: ICAO
 Regional difference in resilience and speed of recovery

Source: ICAO
 Global ECONOMIC Impact

Air Carriers ANSPs Airport

Source: ICAO
 Tomorrow’s Needs & Today’s Challenges
Security
And one thing we must do NOW!
Terrorism

Pandemic Control Effectiveness Global Economy Aviation Resumption

Uncertainty

Resilience Capacity
3 Things we need to survive and grow

Aviation Community Capability Satisfactory Customer Experience Aviation System Performance

Regulatory Burden Passenger Comfort Capacity

Fuel Efficiency New Normal Ready for the Future
Resilience Capacity Environmental Protection
Cost Effectiveness
Illustrated & Written by: DG, CAAT
 Tomorrow’s Needs
CAPACITY THAILAND: 116 million new passengers for a total of 214 million

The 9th largest air passenger market of the world

2031

2019 3X Capacity 2.15 Million Flights

1.06 Million Flights

Real Capacity
 Tomorrow’s Needs
FUEL EFFICIENCY After labor, fuel represents the largest cost component in airlines operations.

Lack of capacity Airbus A319 neo: 2.82 - 3.37 Kg./Km.

=
Fuel Inef ciency

2019
Airbus A330-200: 6.4 Kg./Km.

Boeing 737 Max 7: 2.85 - 3.39 Kg./Km.

1.06 Boeing 777 200 ER: 6.96 Kg./Km.

Million Flights
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Tomorrow’s Needs
Strategies to OVERCOME

National Airspace & Air Navigation Plan

National Plan of Airport System

 Tomorrow’s Needs
READY for THE
FUTURE of AVIATION The future of mobility is literally taking off!

Aviation is
now going
beyond
mobility
between
continents
and cities –
it is starting
to impact
mobility
within cities.

Source: ICAO
Tomorrow’s Needs
Strategies to OVERCOME

National Airspace & Air Navigation Plan

Masterplan for UAS & UTM

 Tomorrow’s Needs
ENVIRONMENTAL
PROTECTION A reduction in net aviation CO2 emissions of 50% by 2050, relative to 2008 levels

Carbon Offsetting and Reduction Scheme

for International Aviation (CORSIA)

Sustainable Aviation Fuels (SAF)

Source: ICAO
Tomorrow’s Needs
Strategies to OVERCOME

National Airspace & Air Navigation Plan

Environmental Protection Policy & CORSIA

 Tomorrow’s Needs
COST
EFFECTIVENESS
The cost of service to airspace users should always be considered….

Source: ICAO
Tomorrow’s Needs
Strategies to OVERCOME

Aviation Economic Policy

Full set of aviation

economic regulations,
strategies, and
implementation plan.
 Tomorrow’s Needs
PASSENGER
COMFORT
Post Covid-19 Travel: 41% People Worldwide Expect To Travel Less!

- Post-COVID-19 aircraft cabin interiors

- Addressing aircraft sanitization & hygiene

- Investment in IFEC (In- ight

Entertainment & Connectivity) and
Digital transformation

- A look into 2030 cabin (BUT NOW!)

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 Tomorrow’s Needs
NEW NORMAL Feel safe, Stay informed, Minimize interactions

New major consideration for air travel

CUPPS: Common Use Passenger Processing System

SAFETY SECURITY HEALTH

CUTE: Common Use Terminal Equipment

CUSS: Common Use Self Service (KIOSK)

HEALTH CUBD: Common Use Bag Drop (Self-Bag Drop: SBD)

PVS: Passenger Validation System

SBG: Self-Boarding Gate

BIOMETRIC
 Tomorrow’s Needs
NEW NORMAL Feel safe, Stay informed, Minimize interactions

New major consideration for air travel

Domestic API: Domestic Advance Passenger Information

SAFETY SECURITY HEALTH

HEALTH
 Tomorrow’s Needs
RESILIENCE
CAPACITY
The crisis is also an opportunity for rebuilding Thailand’s aviation system

"The current crisis provides Resilience: Learn and make it happens!

an opportunity to make
the sector more resilient,
more sustainable
and more competitive."
Henrik Hololei,
Director-General for Mobility and Transport at the European Commission
Recovery Plan: For Thai’s Aviation Industry
Reforms: ‘Never let a good crisis go to waste’ (Winston
Churchill)
Digitalization & Automation: reap the bene ts of
digitalisation and automation
Sustainability: climate-neutral continent by 2050

Regional and international cooperation: amongst Thailand

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 Tomorrow’s Needs
REGULATORY
ONE SIZE does not FIT ALL!
BURDEN

Pressure on States
• World commercial eet expected to double
• Shortage of next generation of aviation professionals Prescriptive Regulations > Performance Based Regulations
• More Regulations need to be implemented
• Too many Audits Policy issues and regulatory design
• More diverse operating environment
• No increase in Regulatory staff PBR: Bene ts and costs of regulations
Performance
Based Perception of the regulatory burden across rm sizes

Regulations Differential regulations for small business - an economic framework

Pressure on Operators Regulatory compliance costs across rm sizes - the evidence

• The cost imposed on business by the regulatory
framework (which includes legislative, regulatory,
and taxation measures.)
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Today’s Challenges
One thing we MUST do now!

Inter.
514,000
Flights
Interrelate
Domestic
554,000
Flights
 Today’s Challenges
One thing we MUST do now!
Indirect effect (Loss) Indirect effect (Gain)
JOB LOSS JOB CREATION
(THOUSAND PERSON)
Cost VS Bene ts (THOUSAND PERSON)

479.1
1,246.5 319.4
779.1
311.6 159.7

Reduction 10% Reduction 25% Reduction 40% Increment 5% Increment 10% Increment 15%

GDP LOSS (BILLION THB) Increase INCREASE OF GDP (BILLION THB)

of GDP
Job 176,219 528.7
1,360 Creation Million
159,685 THB 352.4
850 Tax persons
Revenue 176.2
340 Gain 7,081
Million THB
Reduction 10% Reduction 25% Reduction 40% Soft Loan Increment 5% Increment 10% Increment 15%
5,000
Million
THB
TAX REVENUE LOSS TAX REVENUE GAIN
35.2 Times of Multipliers (BILLION THB)
(BILLION THB)
21.2
53.7 14.2
33.5 7.1
13.4
Reduction 10% Reduction 25% Reduction 40% Increment 5% Increment 10% Increment 15%
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 Flying to the new era of
THAI AVIATION

Overcoming today’s challenges and tomorrow’s needs

Bangkok, 13th December 2021

Suttipong Kongpool, Director-General of CAA Thailand