Contributor - Asia

Jennifer Meszaros

As part of a broader overhaul to correct shortcomings in regulatory oversight, Thailand has decided to split its Department of Civil Aviation (DCA) into two separate agencies.

 


Last week the Thai cabinet approved four proposed draft laws that will replace the DCA with two new authorities. Under the new arrangement, the Office of Civil Aviation will serve as a regulator while the other unit, the Airport Department, will operate DCA’s 28 provincial airports.

 


The move comes after the International Civil Aviation Organization (ICAO) raised concerns in a January audit over the conflict in allowing the DCA to license airlines while operating airports. Plans call for the proposed legislation, drafted with the help of an ICAO-appointed panel, to take effect in the “coming months.”

 


Meanwhile, the deadline to address regulatory shortcomings identified by the U.S. Federal Aviation Administration (FAA) is coming to a close. In July, the FAA conducted an audit and gave the DCA until mid-October to rectify weaknesses.

 


With the Association of Southeast Asian Nations (Asean) open-skies agreement set for implementation by year-end, Thailand continues efforts to upgrade its airport infrastructure to tackle congestion and meet future growth. It has earmarked both Suvarnabhumi International Airport and Don Mueang, the capital’s second air hub, for expansion. It also has begun executing a master plan to upgrade facilities at four regional airports and build an aircraft maintenance center at Chaing Rai International Airport.

 


Apart from Thailand’s struggles, regulatory shortcomings and infrastructure woes continue to plague much of Southeast Asia. Governments across the region have felt pressure to invest in hard infrastructure such as terminals, runways and air traffic control systems, and soft infrastructure such as qualified staff and institutions.

 


In the Philippines, the International Air Transport Association (IATA) has urged authorities to take immediate action to rectify safety and operational issues at both Ninoy Aquino International Airport and Clark International Airport. IATA also called on Indonesia to develop an aviation master plan based on global standards.

 


In Myanmar, Yangon International Airport meets international standards and is undergoing an upgrade. However, all of Myanmar’s 25 domestic airports lack even the most basic infrastructure. Furthermore, authorities have suspended plans to develop and privatize many of the country’s domestic airports. Meanwhile, Vietnam continues to search for private sector participation to develop its airport infrastructure.

 


Given the proliferation of low-cost carriers (LCCs) in Southeast Asia, Air Asia Group chief executive Tony Fernades wants terminals exclusively dedicated to LCCs and is actively looking for joint venture partners to invest in airport developments across the region. Fernades has also spoken out about establishing a common regional regulator for civil aviation ahead of implementing the ASEAN Open Skies agreement.

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