The total economic loss to Thailand – SE Asia’s second-largest economy – was estimated to amount to US$2.8 billion per day.
The severing of air links with Thailand’s capital rippled through the region with airlines scrambling to reroute passengers and freight. Suvarnabhumi, a key air hub which handles 3 per cent of world air cargo and 100,000 travellers a day, was closed for 13 days for air cargo and 16 days for passenger traffic after government protestors occupied it, as well as the old international airport, Don Muang.
Kasem Jariyawong, president of the Thai Air Freight Forwarders Association, said outbound air cargo through the main Suvarnabhumi airport was usually around 1,500 tonnes a day worth some 3 billion baht (US$86.4 million).
Of that, about 600-700 tonnes is perishable goods such as foodstuffs, fruit, orchids and other flowers, and ornamental fish. Electronics, including computer parts along with jewellery make up the remainder.
A prolonged closure of the US$4 billion Suvarnabhumi airport, a major Asian hub that can handle 3 million tonnes of cargo a year, inflicted serious damage to the export-driven economy already struggling to cope with a global slowdown.
Airports of Thailand (AoT) has estimated initial damage to its operations from the seizure of the two main Bangkok airports at 540 million baht, excluding lost business opportunities. Thai Airways, which operates its home hub out of Suvarnabhumi estimated its loses to be in excess of 20 billion baht, putting in on course for its first loss in 45 years.
The protesters see the airport disruption as a way of toppling the government, which they say is a front for former Prime Minister Thaksin Shinawatra, who was removed by the military in September 2006 and now lives in exile.
“The siege of the airport came totally unexpected,” Kasem told Reuters on Friday. ‘Even though some of the perishables were refrigerated, they couldn’t last that long and some have been returned to Thai owners as the quality of these products can deteriorate quickly.’
Some cargo owners moved their goods out of Suvarnabhumi by container trucks through the south to Malaysia, where they are airlifted from Kuala Lumpur, he said.
“Some of the outgoing electronic or computer parts couldn’t be delayed as they have supply-chain deadlines to meet. They need to reach factories in China and other Asian countries on time,” Kasem added.
Some goods were also being sent by sea to Singapore, and then flown out from there.
‘This process will add another one or two days to the shipping time, meaning it could take up to one week for goods using this ‘sea-air’ process to reach their final destinations,’ Kasem said.
Another 1,000 tonnes of inbound cargo and 600 tonnes of transit cargo also go through Suvarnabhumi each day.
The total economic loss to Southeast Asia’s second-biggest economy has been estimated at more than 100 billion baht (US$2.8 billion) per day.