NokScoot (Bangkok Don Mueang) could face additional delays in rolling out its planned network after both Japan and South Korea placed a moratorium on approving Thai-registered airlines' applications for new charter and scheduled flights.

The move comes amid reports in the Asian press claiming the International Civil Aviation Organisation (ICAO) will institute a “Significant Safety Concern” (SSC) against Thailand after the country reportedly failed a recent Universal Safety Oversight Audit Programme (USOAP) inspection in January. As a consequence, Thailand could also lose its Category 1 status with the FAA.

Thailand reportedly only satisfied 21 out the 100 requirements inspected during the USOAP audit, which covers legislation and regulations, organisation and safety oversight functions, personnel licensing, aircraft operation supervision, aircraft accident and incident investigation, and the airworthiness of aircraft.

The Bangkok Post reports that while an official public announcement has not yet been made, governments in the region have already been informed and have already begun taking action.

As its currently stands, NokScoot's plans to serve Seoul Incheon from early May onwards have now been postponed indefinitely while charter flights to Tokyo Narita and Osaka Kansai have also been suspended or transferred to sister carrier Scoot (TR, Singapore Changi).

Other airlines affected include flag carrier Thai Airways International (TG, Bangkok Suvarnabhumi) as well as Thai AirAsia X (XJ, Bangkok Suvarnabhumi) whose service to Sapporo Chitose, scheduled to begin on May 1, has now been dropped. Other smaller Thai charter airlines such as Asia Atlantic Airlines (Bangkok Suvarnabhumi), which are looking to exploit Songkran (New Year) demand for travel to Japan next month, have also been sanctioned.

The Associated Press reports Thai Prime Minister Prayuth Chan-ocha has already instructed the country's foreign minister to discuss the ban with Japan, and has ordered an urgent overhaul of the Thai Department of Civil Aviation (DCA).

It remains to be seen how the United States and the European Union will respond to the downgrade given that they are among Thailand's largest tourist markets though some industry analysts have warned that Thailand could suffer the same impact as Indonesia, which was downgraded from Category 1 to Category 2 in 2007 by the FAA.