Thailand’s Supreme Administrative Court has issued a decisive ruling annulling the Ministry of Labor’s notification that had granted an exemption for foreign pilots to fly domestic routes under wet‑lease arrangements. A wet lease is a leasing arrangement in which the aircraft is provided together with its foreign flight crew, including pilots, and related operational support, rather than the airline supplying its own pilots. The judgment, delivered on November 17, 2025, and published in the Government Gazette on January 30, 2026, follows a legal challenge brought by the Thai Pilots Association, which argued that the exemption unlawfully enabled foreign workers to assume a role traditionally reserved for Thai nationals. The notification in question, dated December 13, 2024, authorized foreign pilots who came as part of wet‑leased aircraft to fly domestic routes. The Thai Pilots Association disputed the legality of this rationale, asserting that the exemption was triggered by a private airline’s request rather than by any statutory necessity. The Ministry of Labor justified this measure by relying on aircraft‑specific approvals issued by the Ministry of Transport and by enabling the Department of Employment to issue corresponding work permits. Arguments Presented in the Case The Thai Pilots Association argued that the exemption undermined the interests of domestic pilots and conflicted with the policy intent of Thailand’s foreign‑worker regulatory framework. The lawsuit emphasized that the notification arose directly from a private airline company’s request to operate two A320 aircraft under a wet lease and that the measure had the practical effect of displacing Thai pilots who remained unemployed. Meanwhile, the Ministry of Labor defended the exemption as a temporary and necessary response to industry shortages and part of national efforts to support tourism and restore aviation capacity. Legal Framework Thai law establishes a general prohibition against foreign nationals piloting domestic aircraft. Section

Cross-border disputes often end with a judgment or arbitral award issued outside Thailand. When a party has assets or operations in Thailand, the key question becomes simple: will a Thai court enforce it? Thai law treats foreign court judgments and foreign arbitral awards very differently. Foreign court judgments cannot be recognized or enforced directly and must effectively be re-litigated. Foreign arbitral awards, however, benefit from a clear recognition and enforcement process under the New York Convention and Thailand’s Arbitration Act. Thailand’s Overall Approach Thailand does not have a general law or treaty that allows automatic enforcement of foreign court judgments. To rely on a foreign judgment, a party must initiate a new lawsuit in a Thai court, plead the claim under Thai law, and prove the case again. The foreign judgment can be used as evidence, but it is not binding, and the Thai court retains full discretion to reassess both the facts and the law. Foreign arbitral awards are treated more favorably. Thailand is a longstanding member of the New York Convention and has implemented it through the Arbitration Act. The act provides a straightforward process for asking a Thai court to recognize and enforce a qualifying award, without retrying the dispute, and subject only to limited refusal grounds. Foreign Court Judgments: Persuasive but Not Binding Although Thai courts do not recognize or enforce foreign court judgments, they may rely on them as persuasive evidence under certain conditions. Courts generally give more weight to judgments that are final on the merits, issued by a court with proper jurisdiction, and reached after proper notice and an opportunity for the defendant to be heard. Default judgments or rulings based primarily on procedural grounds carry less weight, and the ultimate relevance and weight are left to the court’s discretion. In practical

Attorneys from Tilleke & Gibbins have updated the latest edition of Doing Business in Thailand, a Q&A-style guide from Thomson Reuters Practical Law that offers an overview of key legal considerations for companies operating in jurisdictions worldwide. The contribution outlines the country’s legal and regulatory framework for foreign investment and business operations and reflects the latest legislative developments. The chapter addresses the following core topics: Legal system: Structure of the courts and the codified nature of Thai law. Foreign investment: Business restrictions under the Foreign Business Act, sector-specific regulations, exchange control rules, and investment incentives. Business vehicles: Overview of partnerships, private and public limited companies, and other legal entities. Employment: Labor protections, employment contracts, foreign worker requirements, and termination procedures. Tax: Corporate and personal income tax, indirect taxes, and tax obligations for residents and non-residents. Intellectual property: Registration and enforcement of patents, trademarks, designs, and copyrights. Data protection: Key provisions of the Personal Data Protection Act and related compliance obligations. Competition law: Regulatory framework under the Trade Competition Act. Anti-bribery and corruption: Relevant legislation and enforcement mechanisms. E-commerce and digital business: Legal regime for online transactions and digital platforms. Marketing and advertising: Consumer protection laws and regulations affecting advertising and marketing practices. Product regulation and liability: Safety standards, liability regimes, and roles of enforcement authorities. Practical Law, a legal reference resource from Thomson Reuters, publishes a range of guides for hundreds of jurisdictions and practice areas. The insurance and reinsurance guide is a valuable resource for legal practitioners, covering numerous jurisdictions worldwide. To view the latest version of the guide, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.