The FAA said Thailand had failed to tackle shortcomings found in an audit this year in commercial aviation standards.
Shares in Thai airlines fell on Wednesday after the US Federal Aviation Administration (FAA) downgraded Thailand’s safety ratings.
The lower safety rating would notauthorize for the airlines to expand more air services from Thailand to the United States and may tarnish the image of the country’s thriving tourist sector.
Shares of national carrier Thai Airways International dropped 3.5 percent in early trading. Shares of Asia Aviation dropped 2.2 percent, while Bangkok Airways fell 0.9 percent.
Prime Minister Prayuth Chan-ocha ordered officials to improve aviation safety standards without elaborating on what would be done.