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Thai Domestic Fare Hike


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From today's Bangkok Post.

Huge fare hike announced

Air fares on short-haul domestic routes will more than double under price increases announced by Thai Airways International yesterday.

From Nov 15, one-way flights up to 200km will cost an extra 765 baht.

Fares on routes longer than 200km will rise by 20%.

The increase applies to economy class fares only, and does not include applicable airport tax and insurance surcharges.

The business class surcharge remains unchanged at 800 baht one-way.

Routes under 200km, which will see a rise of 765 baht, include Chiang Mai-Mae Hong Son, Chiang Mai-Phrae, Krabi-Trang, Nakhon Ratchasima-Buri Ram, Phitsanulok-Phrae, Phrae-Nan, Sakon Nakhon-Nakhon Phanom and Trang-Hat Yai, the airline said.

Thai Airways advertises its Nakhon Ratchasima-Buri Ram fare, purchased in Thailand, at 475 baht, making the new fare 1,240 baht.

Trang-Hat Yai costs 395 baht (new fare 1,160 baht) and Chiang Mai-Mae Hong Song 445 baht (1,210 baht).

The airline said the increase complies with government policy to standardise fares for all domestic carriers and the Civil Aviation Board's recently announced open-skies guidelines.

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Typical Thai business logic, when biz bad, put your prices up! crazy.gif" border="0

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What a way to run an airline ? The previous fare was ludicrous in the context of the fleet they have. I flew to Korat once in a Jet which held about 20 people, I was told that was a normal payload 20 x 475 Baht= 9,500 Baht Revenue. Wouldn't pay for the pilots lunch let alone fuel, depreciation and all the other running costs. Thai's problem is that the local pollies insist on having an airport and then put pressure on them to run services to it, The losses on domestic runs with the exception of Phuket and CM are enourmous. These short runs with the planes they use must give their P & L account a hiding. Like most state held "enterprises" here, they are run as personal feifdoms, with the main objective to keep all those involved in free lunches.

[ November 08, 2001: Message edited by: Fatbastard ]

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More.....

THAI's 12bn Bt tale of woe

Published on Nov 8, 2001

 

Thai Airways International is owed about Bt12 billion in unpaid bills and it's sending out the debt collectors.

The national carrier's new chairman Virabongsa Ramangkura yesterday said the airline would begin attempting to collect the money, in a bid to increase cash flow at headquarters.

Virabongsa - who is also THAI's acting president - said he had already assigned Dr Vichit Suraphongchai and Police Chief Sant Sarutanond, both THAI directors, to form a team to collect the huge amount of money owed to the airline.

"If I can only plug [this] leak in the airline, I will help it make a lot of profit," said Virabongsa. The new chief has vowed to clean up the airline after stepping in a month ago during a critical leadership crisis.

He said the Bt12 billion was only part of the carrier's unnecessary financial troubles. Overseas offices are also hoarding between Bt200 million and Bt300 million, he said.

Virabongsa said the offices had collected the money, but did not seem to be rushing to send it back. "I don't know why they try to keep all the money to themselves," he added.

These are just a few examples of the myriad problems facing Vira-bongsa as he struggles to revive THAI, which has been suffering from mismanagement for years. He said his first priority was to establish transparency within the airline, as well as putting in place a code of conduct, so a merit system would be able to function.

He said he intended to plug all of the financial "leaks" within the organisation and make it more efficient.

He also in-tends to develop a business plan, aimed at achieving long-term growth for the company.

Virabongsa is the first to admit he is facing a massive challenge in turning around THAI, which needs strong leadership to push through much-needed reforms. But he is the ideal person to do it, because he is an outsider and has no vested interests. He also has the full political backing of Prime Minister Thaksin Shinawatra.

To initiate change within the airline, Virabongsa said he had found it necessary to act as president and chairman concurrently.

He intends to remain president for at least six months as he revamps the company. He will then call for the election of a new president.

Although the president of THAI earns only Bt180,000 a month, it is one of the most sought-after jobs in Thailand as the office holds enormous power of the purse. laugh.gif" border="0

Virabongsa said the airline's president oversaw an annual Bt1.15-billion advertising and promotional budget, without cross-checks from any other party.

He said this would have to change, and he intended putting in place a screening process.

Thanong Khanthong

THE NATION

 

TIT!

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This is a bummer but frankly at this time my thoughts go out to any euro-sanukers who had Thai bound flights booked on Sabena. Imagine waiting for months on end, everyday dreaming of Sanuk and then when its time to take off to paradise your carrier goes broke and you're stuck in Belgium on a cold November morning.

Going back to Thai Air, does anyone know how this price hike will affect international flights and inparticular the short hop to Cambo? RAC recently discontinued this route and Thai increased prices then so this could make for a double whammy. In June i did bizz class from BKK-PP for less than 6000bht. Any chance of doing that again now?

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Not sure how it will effect all TG international flights, but from the USA, many carriers are offering really good fares right now, which caused TG to lower their fares as well. All the airlines are having trouble right now, due in large part to my previous post, poor management.

[ November 08, 2001: Message edited by: Old hippie ]

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Just noticed an update to the BKK-UBP (Ubon "Gateway to nowhere in particular" Ratchathani International Airport) route.

They've added a third daily flight. BKK-UBP 12:25-13:30 and returning UBP-BKK 14:10-15:15. This through 30 March 2002 apparently.

Economy "M" 3300 baht. Economy "J/Y" 3900 baht.

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All-

I was in LA briefly this afternoon and stopped by the Thai airways office to say hi to a friend who works there...

Anyway, I asked her about this fare increase.. She said that they got word of it last week, but were told that it was going to be "modest" and "in line with inflation".. yeah right! She said that they have already received over 250+ calls to cancel exsisting reservations just beacuse of this issue... She said that some of TG's best domestic fares can be reserved OUTSIDE of Thailand but must be PAID and ticketed INSIDE of Thailand... So the LA sales office makes alot of domestic reservations for customers and they ticket once they arrive in BKK... Now she said that they are getting an awful lot of cancellations!

I said, "what do you think about this move by TG?" She said (please note that she is from BKK... born, raised, schooled etc in BKK) this is so very typical of TG senior management... inconsisent pricing, poor communications with the overseas sales offices and anti-competitive fare pricing on key markets" Ouch!

--UPSer laugh.gif" border="0laugh.gif" border="0

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