Thai PM to Revoke Airline Licences Over Fare Gouging

(THAILAND) Prime Minister Anutin Charnvirakul has warned Thai airlines that their operating licences will be revoked if investigations confirm fare gouging and abusive ticket practices on domestic routes, with the busy Bangkok–Hat Yai corridor at the centre of complaints. The threat follows reports that some carriers allegedly cancelled confirmed tickets, then forced passengers to rebook the same flights at sharply higher prices.

Anutin said the government would show “no compromise” if airlines were found to have taken advantage of people facing hardship. The order has triggered an urgent probe by the Civil Aviation Authority of Thailand (CAAT). Transport Minister Phiphat Ratchakitprakarn has backed the move and asked regulators to focus on routes where prices have surged fastest.

CAAT response and regulated fare ceilings

CAAT has publicly stressed that domestic airfares remain under a regulated ceiling, insisting that current prices, while high, do not break the law. Officials say some tickets have climbed toward those limits because of heavy demand, especially during peak travel periods and crises that push more people onto planes.

“No compromise” — Prime Minister Anutin Charnvirakul’s pledge to act if exploitation is confirmed.

Important fare ceiling figures (Bangkok–Hat Yai):

• CAAT argues some tickets are approaching these ceilings due to demand spikes.
• Social media screenshots of steep fares have gone viral, and many travellers say the ceilings themselves are unrealistically high for a domestic flight under two hours.

How the problem affects travellers and the economy

The issue goes beyond consumer complaints and touches Thailand’s role as a regional hub for tourism and labour migration.

• Routes like Bangkok–Hat Yai are crucial for:
  • Foreign tourists connecting from international flights.
  • Migrant workers travelling between Bangkok, border areas, and hometowns.
  • Workers and visitors who rely on tight connections for visa or immigration appointments.

Consequences of short-notice cancellations and forced rebookings:
– Loss of hotel bookings and work days.
– Missed visa or immigration deadlines.
– Lost job opportunities or delayed starts.
– Economic impact on southern cities dependent on visitors and returning workers.

According to analysis by VisaVerge.com, sudden changes in domestic transport costs disproportionately hurt foreign workers and lower-income migrants, who cannot easily change work schedules or visa dates.

Overseas agents and online travel agencies

CAAT highlights a growing problem beyond Thai regulators’ direct control: tickets sold through overseas agents and popular online travel agencies.

• Some third-party sellers have advertised seats well above the regulated domestic caps, especially close to departure dates when demand spikes.
• Airlines remain responsible for base prices, but mark-ups added abroad can leave passengers paying more than Thai rules allow.
• CAAT has urged passengers — particularly foreign nationals planning complex itineraries — to book directly with airlines whenever possible so prices stay within legal limits and are easier to verify.

Abusive practices beyond price ceilings

CAAT reminded carriers that even if a ticket price is under the ceiling, certain tactics can still be abusive:
– Sudden cancellations followed by forced rebookings at higher fares.
– Practices that strand passengers or leave them paying significantly more for the same seat.

Prime Minister Anutin said the government already holds a list of airlines named in complaints and intends to investigate each one in detail. He warned that if patterns of exploitation emerge, licences will be revoked for operators that knowingly exploit travellers.

Potential airline responses and industry implications

• For carriers dependent on domestic routes serving tourists and migrant corridors, losing a licence would be a severe blow.
• The threat is likely to prompt airlines to review:
  • Pricing algorithms,
  • Cancellation policies,
  • Relations with online agents.
• If licences are suspended or revoked, lawyers expect carriers to demand clear proof that legal fare limits were broken or passengers misled.

Consumer advocates argue that focusing only on ceilings misses the point:
– The pattern of cancellations followed by higher rebookings indicates a deeper problem in how risk and cost are shifted onto passengers.

Global context

The Thai debate is part of a wider global worry about how airlines set prices in an age of powerful data tools and automation.

• Regulators and courts in other countries, including the 🇺🇸 United States, have examined whether dynamic pricing systems and algorithm-driven coordination can lead to price gouging or algorithmic collusion.
• Critics say systems that instantly adjust fares based on demand, desperation, and personal data tend to make the least flexible passengers pay the most.
• Thailand’s current focus is narrower: enforcing existing fare caps and stopping practices that strand passengers or force them to pay double for the same seat.

Advice for travellers and how to document complaints

CAAT recommends passengers take practical steps if they suspect unfair treatment:

1. Book directly with airlines whenever possible to avoid overseas mark-ups.
2. Keep documentation:
   • Receipts,
   • Booking confirmations,
   • Screenshots of fares and communications.
3. Use CAAT’s existing contact channels for complaints; the agency’s information is on the Civil Aviation Authority of Thailand website: https://www.caat.or.th/en.

• CAAT has not launched a new complaint portal yet, but officials say documented cases will guide enforcement and possible future fare-rule changes.
• Foreign travellers often face language barriers or uncertainty about which Thai authority can help — thorough documentation helps their case.

What to expect next

• If CAAT’s investigation finds fares respected legal caps but passengers still face shockingly high prices, the government may face pressure to revise maximum fare levels for routes like Bangkok–Hat Yai.
• If serious abusive practices are found, regulators will need to prove that licence revocations are more than political rhetoric.
• Either outcome could shape both ticket pricing and public trust in Thailand’s aviation sector and its role as a travel and migration hub.

The situation highlights how a domestic fare dispute can quickly affect a wide range of travellers — from short-stay tourists to long-term foreign workers — and influence wider economic and mobility patterns in Thailand.