BANGKOK: Airlines in Thailand tumbled the most among the world’s carriers after the nation raised the excise tax on jet fuel 20-fold to bring it in line with other fuels. The move compounds other challenges Thai airlines are already facing, including intense competition and some route restrictions after a safety-rating downgrade by the US Federal Aviation Administration in December 2015. Flag carrier Thai Airways International Pcl fell as much as 5.7%, the most since November, while Asia Aviation Pcl slid 8.5%, Bangkok Airways Pcl 5.3% and Nok Airlines Pcl 4%. The fuel cost tax adds more bad news for airlines,” said Siam Tiyanont, an analyst at Phillip Securities (Thailand) Pcl in Bangkok. Thai Airways was 4.8% lower as of 3.04pm in Bangkok last Friday, the worst performer in the 46-member BI Global Airlines Competitive Peers index.

Source: The Star January 29, 2017 23:26 UTC