Bangkok--Oct 17--Thai Airways International
Following higher operation costs driven by oil price, Thai Airways International Plc (THAI) is to increase airfares by an average of 200-300 baht for some of its local routes after stalling the hike for years. Despite the increase in airfares, THAI still has to absorb some loss. It’s likely that other airlines will follow suit. THAI’s new rates will be effective on Nov 1, 2005.
Mr. Vasing Kittikul, Executive Vice President of Commercial Department at THAI, said the airline’s new rates will be effective on Nov 1, 2005 with the hike of around 200-300 baht per single trip. THAI’s fares for domestic flights have stood unchanged since 2001, he added.
Due to the rising operation costs and higher fuel prices, THAI finds it necessary to increase the fares after shouldering the burden for a long time. Though the airfares will be increased, THAI still sees some loss in operating some domestic flights.
“THAI’s prices for domestic tickets do not reflect its operation costs. For the past four years, THAI has never increased its fares while other airlines have been changing their prices. THAI has very high operation costs. When taking into account the quality of service, convenience of travel, and safety, THAI offers very low airfares for its service,” Mr. Vasing said.
Flights to Chiang Mai, Hat Yai, and Phuket will see an increase of 200 baht per sector trip. For Chiang Mai to Phuket, the price is to increase by 400 baht for one sector.
Fares of the flights to Khon Khaen, Krabi, Nakhon Si Thammarat, Phisanulok, Surat Thani, Trang, Ubon Ratchathani, and Udon Thani are increased by 300 baht per trip. The feeder route linking Chiang Mai and Mae Hong Son is to rise from 765 baht to 1,000 baht.
Mr.Vasing said THAI has already submitted the price increase to the Office of Air Transport. There should be no problem because the price increase, about 4.19 baht per kilometer, does not exceed the Office’s ceiling at 6.82 baht per kilometer. However the price increase for Chiang Mai-Mae Hong Son is higher than the office’s limit at 8.33 baht per kilometer.The national carrier already submitted the new airfare price, he said.
“We have lost on these operations for a long time. By raising our fares somewhat we hope these losses can be reduced. While the market also needs low cost carriers, some have operations costs similar to THAI’s. Fare increase on these carriers should not be unexpected.” Mr. Vasing said.
For further information,
please contact Commerce Support Department,
Thai Airways International PCL
K. Soraya Pongprayoon Tel. 01-679-9100
K. Promsant Jithnasilp Tel. 01-562-7360 End.