Ease Up On Bangkok Airways Says Real Estate Md

[southwest19]

<H1 style="MARGIN-TOP: 0em">Ease up on Bangkok Airways, says real estate MD</H1><H3 style="MARGIN-TOP: 0em"></H3><H4 style="FONT-STYLE: italic"></H4>In recent months, Bangkok Airways has been at the receiving end of a significant amount of criticism relating to its Bangkok-Samui route.

As reported in Property Report Thailand’s December edition, the airline axed a proposed fare hike following complaints from Samui business owners and tourism industry workers that it would have an impact on the island’s economy.

But not everyone is pleased with the airline’s flip flop. In fact, John Birt, managing director of Samui Villas and Homes, says businesses should be thanking the airline for opening up a whole new market to them, rather than protesting.

“People react to any news about Bangkok Airways without thinking it though. All of us in business on the island wouldn’t be here if not for BA,” says Birt, adding that the airline’s CEO, Dr Prasert Prasarttong-Osoth, came to the island and built the airport himself, when nobody would assist him financially. “Most people don’t know the true story behind the airline.”

Bangkok Airways built its own private airport on Ko Samui, which was opened in April 1989 and offers direct flights between the island and Phuket, Hong Kong and Singapore.

For the first time in five years, Bangkok Airways hiked the round-trip economy-class airfare on its Bangkok-Samui service from Bt7,100 to Bt9,760 last last year. The airline also raised the "M" class ticket price by Bt100 per trip. Passengers with a Samui resident card would be allowed a 35%t discount. The fare hike was scrapped just days later, following the local outcry.

The airline’s monopoly over the airport has long been a source of contention, and the key reason for the anger over the fare hike.

Tourism operators and hospitality-related businesses said they feared visitors would choose Phuket or Krabi over the island, due to the cheaper airfares.

But Birt says opening Samui’s runways to more airlines isn’t the answer.

“The airport is a very good filter,” said Birt, adding that Samui just couldn’t cope with fleets of jumbo jets coming in, as is the case in Phuket. “The island would be destroyed.”

Instead of taking the assumption that nobody will come if the airfares are higher, Birt says people should instead consider the positives.

“Hoteliers should think about upgrading their product,” he says, noting that if everybody focused on driving the island upmarket it would be beneficial for all involved. Even now more private jets are coming into the airport, says Birt.

According to media reports, Bangkok Airways expects its profit this year to fall from 7% last year to 2% this year. The airline blames higher fuel prices and operating expenses, including the move to Suvarnabhumi Airport.

The Samui flights, which carry 600,000 passengers a year, generate 40 per cent of the airline´s total revenue. Passenger traffic has increased 15 per cent annually.

Bangkok Airways said the fare increase was approved by the Transport Ministry. Sources alleged the approval came at the end of September when the country was without a government, following the ouster of former prime minister Thaksin Shinawatra.

Apart from this, the airline has also declared Samui Airport open to all other airlines for operation, following rules and regulations issued by the CAD. Bangkok Airways is now collaborating with THAI on a code-share agreement for the Bangkok-Samui route.

In the end, Birt says business owners should keep their criticism to themselves.

“I do believe they should allow [Prasert] to make his own decisions instead of having a knee-jerk reaction. Sure as hel_l, [the hoteliers] crank up their room rates every year when their costs go up.”

I read the above article with somewhat disbelief and can only assume that John Birt an articulate and intelligent man must have been quoted completely out of context.

Yes Bangkok Airways made a significant investment in KS when they built the airport but they have had a monopoly for nearly eighteen years and if they have been unable to reap a sizeable return on that investment then maybe we should question their competency in running an airline rather then trying to justify sqeezing yet more money from their customers.

Also to try and justify a fifty percent fare increase by saying it is the first for five years does not really hold much water when you take into account that the original fare was probably the most expensive domestic route in Thailand and Bangkok Airways introduced a fuel surcharge to soften the impact of higher energy costs.

To then suggest that hoteliers (which I am not) upgrade their facilities to make KS a more upmarket destination is quite frankly laughable, Barbados or the Seychelles it ain't!

I think local businesses who have also made investments have every right to voice their concerns when dealing with a monopoly and to suggest that they should keep their thoughts to themselves is quite frankly absurd this is probably the only way of keeping Bangkok Airways in check.

I have been coming here since the 80's and am not particularly against Bangkok Airways monopoly all I want it a reasonable service at a reasonable price.

[sbk]

Link to a source please?

[southwest19]

Link to a source please?

http://www.thaivisa.com/forum/index.php?showtopic=103307

sorry new to the forum.

[southwest19]

http://www.property-report.com/aprarchives...amp;date=150107

[the gent]

Now, before one considers the validity of Birt's facile observations it may be worth considering the commercial relationship that may exist between him and said airline. Does he advertise in the glossy bumf to be found in the aircraft operated by that venal, predatory carrier to the exclusion of all others?

Wittering on about the merits of a monopoly vis a vis the hordes that might devour Samui if it did not exist is puerile and ignores the fact that it is accessible by other means. In truth, competition will not only deprive Bangkok Airways of its main cash cow but will probably also diminish the numbers who choose to travel by sea however the increase in numbers will ultimately be dictated by available accommodation and not the means by which one might access it. How that may be managed will be dictated by local politics and not the spurious notion that a monopolistic carrier, masquerading as an altruistic force for conservation, subordinates its interests to those of the island.To believe otherwise is inviting one to accept the absurd premise that an estate agent is at heart a decent chap uninterested in taking a profit.

The Thai government should compulsory purchase the airport, extend it and develop Samui accordingly.

[limbos]

the gent,

and how do you suggest the Thai govnmt should do this, looking at their track record of Suvarnabhumi?

[Samui Coconut]

the gent,

and how do you suggest the Thai govnmt should do this, looking at their track record of Suvarnabhumi?

You mean track or crack ?