Thursday, June 4, 2015

Regulatory Restructuring in Thailand

A useful example of the ability of the international community to pressure a non-compliant state into reforms is currently underway in Thailand. Earlier this year, an ICAO audit revealed deficiencies in the country's safety oversight. That finding has jeopardized the ability of Thai carriers to operate charter flights to Japan and China, leading to a memorandum of understanding under which the Thai government will submit its reform proposals to the Japan Civil Aviation Bureau for review. The current plans for restructuring the Thai Department of Civil Aviation involve the creation of a separate airports authority and safety and licensing regulator, potentially funded by a direct levy on Thai carriers. Thailand appears to be feeling added pressure because of upcoming inspections planned by the U.S. FAA in July and another ICAO audit, this time of Thailand's aviation security practices, next year.

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