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10 February 2012 10:43AM

Industry wants airport remedies

10 Dec 08 ,  Bangkok Post / VICHAYA PITSUWAN
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Estimated B137bn in damages from closure

Local business groups have called on the government to provide ''remedies'' for the estimated 137 billion baht in damages caused by the eight-day closure of Suvarnabhumi and Don Meaung airports earlier this month. The damage estimated by the National Economic and Social Development Board (NESDB) includes losses suffered by the tourism, industrial, transport, aviation and export sectors as a result of the airport closures by anti-government protesters under the People's Alliance for Democracy banner.

The gems and jewellery sector alone estimated it suffered damages of 859 million baht per day in lost revenues.

Additional losses are likely once the longer-term impact of lost orders is calculated, according to the Federation of Thai Industries (FTI). Logistics operators and business leaders met yesterday at an FTI conference to discuss the impact of the airport crisis.

''The business sector has been significantly hurt by the crisis. The first thing needed from the new government is remedies to cover the impact and losses caused by the incident,'' said Tanit Sorat, an FTI vice-chairman.

Exporters of perishable goods, for instance, argue that the government should provide compensation to cover losses on goods.

Mr Tanit, also the head of the FTI's logistics club, said the airport closure threatened to undermine the country's ambition of becoming a regional logistics hub.

Kovit Thanyarattakul, chairman of Multi Air Services Company, a leading cargo service provider, agreed that the government should provide financial aid to help firms affected by the airport crisis.

Authorities also should lead an overseas campaign to help explain the situation to foreign buyers and investors.

''There have been threats from half of our customers that they will simply turn away from Thailand. It will be difficult to win them back,'' Mr Kovit said.

Members of the Thai Airfreight Forwarders Association (Tafa) estimated losses of at least 2.1 billion baht over the closure period.

Tafa vice-chairman Urai Choothakarn said the estimate represented real business losses over the closure period, and did not include future lost business.

Thongyu Khongkan, the secretary-general of the Land Transport Federation of Thailand, said land transport service operators are also wounded as air cargo transport was disrupted during the airport closures.

''The government could consider measures such as a one-year grace period on debt interest payments for logistics operators. Another option would be a reduction or exemption on social security liabilities for one to three years,'' he said.

''The key is something that will help reduce operating costs.''

He also wants to see an exemption or 50% reduction on land transport taxes, especially for trucks for six or 12 months.

Mr Tanit also called for an ad-hoc plan for foreign freighters to be established for Thailand to maintain the reputation as regional logistic hub.

''The government must also set up a crisis management unit,'' he said.

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