New Measures Protecting Passenger Rights against Delayed Planes & Cabinet Green Light to Real Estate Stimulus Measures

Welcome to Wissen & Co Newsletter

In this issue, we provide our clients, members of the Chamber of Commerce, and friends, with information regarding new measures protecting passenger rights against delayed planes and 5 measures stimulating real estate businesses.

New Measures Protecting Passenger Rights against Delayed Planes

The Civil Aviation Authority of Thailand (“CAAT”) is conducting a public hearing for 2 new drafts of regulations protecting the passengers’ rights, consisting of 1) drafted regulations of the Civil Aviation Board No… regarding measures protecting the rights of passengers on domestic and international regular flights and 2) drafted regulations of the Civil Aviation Board No… regarding measures protecting the rights of passengers on charter flights issued by virtue of the Air Navigation Act (No. 14) B.E. 2562 (2019) (“the Air Navigation Act”). The amendments include the following.

 case of a flight delay, flight cancellation, or refusal to transport passengers, airlines shall inform passengers of the reasons and measures to support them in the event of various problems related to flights and must inform passengers of the situation and progress in solving the problems every 30 minutes.

If a flight is delayed for more than 2 hours, airlines shall arrange meals and drinks or coupons to exchange for food and drinks for passengers as appropriate with the meal for the length of time waiting to board the plane without charge.

In the case of a delay of more than 5 hours, the same principles shall apply but airlines shall increase compensation to be consistent with the current economic situation, for example, for domestic flights from 600 to 1,500 baht, while internationally, shall be increased to 1,900 baht for Southeast Asia, 3,100 baht for South Asia, 3,300 baht for East Asia, 5,900 baht for Middle East, 6,000 baht for South Pacific, 6,900 baht for America, 8,000 baht for Europe, and 9,700 baht for Africa.

In the case of a delay of more than 10 hours, flights within Southeast Asia will receive compensation of 3,900 baht, 6,200 baht for South Asia, 6,500 baht for East Asia, 11,800 baht for Middle East, 12,000 baht for South Pacific, 13,900 baht for America, 16,000 baht for Europe, and 19,000 baht for Africa. However, for flight cancellation due to an emergency not caused by the airline such as a natural disaster, the airline does not have to pay compensation but still has to provide food and drinks as before.

For protection measures in case of flight cancellation or refusal of transportation, the same measures apply to delayed flights. However, news of flight cancellation must be informed to passengers at least 3 days before the departure date for domestic flights and an additional 7 days for international flights. Previously, notice was only 3 days in advance.

It also added that Airlines must report passenger care plans for delayed flights, cancellation of the flight, and refusal of transportation to the CAAT within 24 hours of the event. 

If the airline does not follow the new regulations, it constitutes an offense according to Section 41/134 of the Air Navigation Act, with a fine of 50,000 – 500,000 baht.

Cabinet Green Light to Real Estate Stimulus Measures

On 9th April 2024, this measure to stimulate the economy through the real estate sector is to support people’s housing and to stimulate the economy through the real estate sector and businesses related to the real estate sector. and to prepare to support the upgrade of Thailand to a world-class urban and industrial center with 5 measures as follows: 

• Reduce transfer-mortgage fees to 0.01% for purchases of houses and condos priced not more than 7 million baht;
• Personal income tax deduction for those who want to build a house;
• Home loan with 3% interest for the first 5 years for a house worth not more than 3 million baht from the Government Housing Bank;
• Home loan with 2.98% interest for the first 3 years for at least 2.5 million baht per person from the Government Housing Bank; and
• Providing support for housing businesses for low-income earners by BOI. 

The measures are expected to generate 800 billion in purchases, pushing GDP growth to 1.8%.

Mr. Wichien Harnpraween
Managing Partner

wichien.h@wissenandco.com
Tel:+662 2592627 thru 9
Fax: +662 2592630