One-two-go Forced To Suspend Operations

[george]

One-Two-Go forced to suspend operations for nearly two months

BANGKOK: -- Low-cost carrier One-Two-Go will suspend its operations from July 22 to September 15, making it the first airline victim of record oil prices.

Founder and CEO Udom Tatiprosongchai said the unrelenting rise in oil prices had forced the airline to shut down temporarily.

During this period there will be a reorganisation to prepare for a return to business.

"The company has been losing money for months, and we cannot continue like this," said Udom, adding that One-Two-Go would resume operations when the situation improved.

Two of its rival, Thai AirAsia and Nok Ai, are still in service but facing the same cost pressure.

Both have revised their business strategies and rescheduled some routes.

Udom said One Two Go had been operating based on actual costs while other players had different strategies. In a statement, One Two Go said high oil prices were hurting the global airline industry.

Airlines world-wide have cut 30 per cent of their flights and raised surcharges to stay in business.

One Two Go was the country's first low-cost airline, starting its service in December 2003 with a Bangkok-Chiang Mai flight.

It ran into trouble when one of its planes crashed in Phuket, killing 90 passengers. Rumours abounded that it could face regulatory problems due to its safety record.

Udom declined to comment on this issue.

Relatives of the victims in the Phuket crash have started a web-site, www.investigateudom.com, to campaign for an investigation into Udom's business conduct.

It was alleged that Udom had misled pilots into flying unsafe planes and paid bonuses for those who worked beyond the legal maximum of flying hours.

Chaisak Angkasuwan, director-general of the Civil Aviation Department, could not be reached for comment yesterday.

--The Nation 2008-07-19

[Oliver Reed]

Fasten your seat belts people...this is the first of many

[holidaybob]

They could change the name to One Thats Gone

[wrecker]

It is the first of many, but most business models are not sustainable. These airlines are ran by amateurs. They seldom hedge their risks. I can easily recall all the times that I was the one and only passenger in a Fokker 50 from another small airline which seem to have disappeared from the face of the earth. But honestly spoken I do not believe one word of the story printed here. The real reason is that this airline does not get an insurance policy anymore, and was flying for many years without any policy at all. If you follow the story that is unfolding in the US courts it is clear that they face completely different hurdles than other Thai airlines.

Airlines (except for a very few) are mostly run by charlatans. It makes sense to have an airline for status or money laundering.

[harleyclarkey]

Who did the forcing? The aviation "authorities", the airline, the families of the crash victims, another aviation authority????

For me, it is no loss if they never reopen. There are just too many rumours about flying practises, safety issues and managemnet style. These are bad enough for a bus company! But an airline?? No thanks. Stay grounded.....One-Two-Gone! Yes!

[macduff]

They could change the name to One Thats Gone

How about one-two-gone

[pascal2000]

who's next and who cares

[animatic]

Somebody loses their trophy airline, so what.

When I need to fly there will be a flight.

Better this weeds out the fly by night amateurs.

They were likely going tits up anyway from the suits coming their way.

Oil just sped up the process. If it shakes out this way for others,

then likely it improves safety by getting rid of under financed carriers.

Though I still feel bad for average staff people laid off.

I flew 1 2 gone,

three times and won't miss them much.

Edited July 18, 2008 by animatic

[GungaDin]

^^^^^^^^^^^^^^^^^^^

More BS from Udom's office!

Quote;

Relatives of the victims in the Phuket crash have started a web-site, www.investigateudom.com , to campaign for an investigation into Udom's business conduct. is the reason.

It has nothing to do with the price of oil (or fish)

Let's hope this gangster never has anything to do with aviation again.

BTW, does Phuket airport have rain channels in the runway yet?

I think not.

[Rinrada]

From their Web Booking page.....

Due to an overhaul on our systems, passengers will (only -my word) be able to book flights until 21 July 2008.

One Two Go Airlines would like to apologise for any inconvenience caused....and that as they say appears to be it.....

erm...Wot about the punters who have bought tickets after that date?

[cfrmatt]

Should be called 1st to go

[meelousee]

One to Go fitting name. They fly junk anyway, glad they are gone before one fell out of the sky and killed a plane load of people

There are several airlines around the world, mostly the no frills discount airlines are the ones facing the ax or bankruptcy courts.

I understand that even some major airlines are in the same sinking boat. Same ole song and dance for the airline industry, seems that OPEC nations should step in and do what should be done, but they wont. Greed has a funny way of turning ones back on the problems it causes and the people it hurts.

[jts-khorat]

Relatives of the victims in the Phuket crash have started a web-site, www.investigateudom.com, to campaign for an investigation into Udom's business conduct.

I guess this means no money for the vistims, we wait until the courts case(s) are over and then we can all start fresh and from a clean slate with a totally new company with a slightly different name. So the statement that other airlines face the same pressure is BS.

Standard Thai business practice, see how many Baht-Billionaires could just default on their loans end open business right after the crash of 1997 and even the Thai banks could not get the money from them; so why would some private perosns be able to see a single Satang.

[sammo]

They could change the name to One Thats Gone

How about one-two-gone

Personally i always avoided this airline. I just felt a bit put - off by the fact that a Thai airline chose to employ Indonesian (rather than Thai) pilots as a cost cutting measure..........

[astral]

...........said the unrelenting rise in oil prices had forced the airline to shut down temporarily.

Does he seriously think he will be able to bring the airline back to life?????????

[Loaded]

Standard Thai business practice, see how many Baht-Billionaires could just default on their loans end open business right after the crash of 1997 and even the Thai banks could not get the money from them; so why would some private perosns be able to see a single Satang.

I'm not doubting you but I can't think of a baht billionaire who went belly up in 97 and opened new businesses immediately after defaulting on loans. Could you name one to jog my memory?

[bkkdawg]

Very dodgy airline... one 2 gone couldn't aggree more...

[marshbags]

They could change the name to One Thats Gone

How about one-two-gone

It,s not just the domestic situation, which incidently effects many thousands of Thai and foreign visitors alike.

If we could fast forward to a year from now, unless the situation changes and returns to levels that are manageable, the international costs of flying that effect many of us worldwide, will be out of reach for many who vsit their home countries for whatever of the many personal reasons.

It doesn,t look encouraging at all, i,m sad to say, and will only get worse IMHO

marshbags ened by the prospect.

[Johpa]

Airlines (except for a very few) are mostly run by charlatans. It makes sense to have an airline for status or money laundering.

And where be a more fitting place for such an airline than Thailand, a country long run by charlatans for the sole purpose of laundering money?

Chaiyo!

Edited July 19, 2008 by Johpa

[sibeymai]

There will be a lot of happy people today based on this news and none more happy than the friends and families of the Phuket crash victims.

I don't think they will mind at all if this reduces their chances of getting money out of Udom. That the airine probably won't ever fly again is enough.

However, the Thai auhorities must continue to be pressured to complete a full investigation into the crash and the operations of the airline. The allegations levelled against Udom and the Department of Civil Aviation must be fully investigated.

With the US FAA investigating overall safety standards of airlines and facilities in Thailand it is possible, were safety certifications downgraded or revoked, that Thai Airways would be refused use of US airspace. This investigation happened as a direct result of the Thai authorities attempt to whitewash the Phuket crash and protect Udom and the pressure of the crash victims friends and families put on the US authorities for justice. I wouldn't be surprised if Udom has been forced behind the scenes by the Thai government to close down to take the heat out of the US investigation so Thai can continue to fly to the US.

Imagine the loss of face for Thailand if the national carrier is banned from the US. Most western nations would automatically apply a similar ban. The cost to TG would be enormous and the loss of face priceless.

Udom is simply not worth the risk. Let's hope the US keeps applying pressure so he ends up on criminal charges and in jail.

[OldgitTom]

Airlines (except for a very few) are mostly run by charlatans. It makes sense to have an airline for status or money laundering.

And where be a more fitting place for such an airline than Thailand, a country long run by charlatans for the sole purpose of laundering money?

Chaiyo!

As compared to what country, Chaiyo? The land that allowed the massive fraud & robbery of Enron, & the 'dodgy' accounting company that abetted it?

Or what about the system of institutionalized theft the West calls 'banking'. Banks print money, then lend it out against assets the do not have. For this, they charge we mugs a percentage. When we can't pay back, they lend us (including our governments) more paper at compounding interest charges. When the debts as a whole reach towards un-pay-back-ability, the pack of cards collapses - look around you.

Then (this is a killer), 'our' governments bail out the banks & put the charge on our tax bill! Old git Tom

[Demps1]

Good riddance to bad rubbish IMHO

[HelterSkelter]

Most apropriate in View of their past record

"One 2 Dead"!(Since the terrible Phuket tragedy I have renamed them!R.I.P Those We lost!)

They could change the name to One Thats Gone

How about one-two-gone

[12DrinkMore]

Most apropriate in View of their past record

"One 2 Dead"!(Since the terrible Phuket tragedy I have renamed them!R.I.P Those We lost!)

This "1 2 ..." phrase comes from "want to", as in "1 2 fly" or "1 2 call".

So I suggest "1 2 Die" as the new name for the arline if it opens again.

[chrislarsson]

Airlines (except for a very few) are mostly run by charlatans. It makes sense to have an airline for status or money laundering.

And where be a more fitting place for such an airline than Thailand, a country long run by charlatans for the sole purpose of laundering money?

Chaiyo!

As compared to what country, Chaiyo? The land that allowed the massive fraud & robbery of Enron, & the 'dodgy' accounting company that abetted it?

Or what about the system of institutionalized theft the West calls 'banking'. Banks print money, then lend it out against assets the do not have. For this, they charge we mugs a percentage. When we can't pay back, they lend us (including our governments) more paper at compounding interest charges. When the debts as a whole reach towards un-pay-back-ability, the pack of cards collapses - look around you.

Then (this is a killer), 'our' governments bail out the banks & put the charge on our tax bill! Old git Tom

Nice post! Even worse is when IMF is doing the job of baling these banks out at the expense of poor ppl in the developing world, as happened in the 1997- 98 crisis.

[chrislarsson]

I don't know how big impact the crash in Phuket have had, but I'm sure it has not been helpful.

If it is true that 1-2-Go has a rather old fleet of airplanes, this is more likely to be the main cause. Old models consume almost twice the rate of fuel, and airlines with aging fleets will therefore be much more sensitive to the higher oil price.

Overall, Asian airlines should be in better position to survive than many airlines in the US and Europe. Economies are still going strong in Asia, and Asian airlines tend to use larger models than their European and American counterparts, which are more fuel efficient.

[illy]

whilst everyone enjoys the benefit of low cost airlines in the financial sense this latest shift in the world economy that shrinks airline profits into losses will be very bad news for aviation safety world wide. the first thing management will do cut is cut maintenance costs and with LCC's using many aging planes they are going to be flying time bombs, a crash just waiting to happen.

i trust the aircraft and crews but no way do i trust the CEO's and management of any airline whose only loyalty is to shareholders NOT the safety of it customers. this does not just apply in thailand , ALL airlines are going to be in a similar situation. watch out in the next 12 months for an increase in the % of airline "incidents".

[illy]

also, talking of one two go, will orient thai be suspended as well?

was at phuket airport yesterday[friday approx 4.00pm] saw one of those ancient ''model T ford" 747s they fly , looked like it was ready for takeoff and simply went back to the terminal? testing?? or some failure on the plane??, i would like to know about that if anyone has any info.

[Johpa]

Airlines (except for a very few) are mostly run by charlatans. It makes sense to have an airline for status or money laundering.

And where be a more fitting place for such an airline than Thailand, a country long run by charlatans for the sole purpose of laundering money?

Chaiyo!

As compared to what country, Chaiyo? The land that allowed the massive fraud & robbery of Enron, & the 'dodgy' accounting company that abetted it?

Or what about the system of institutionalized theft the West calls 'banking'. Banks print money, then lend it out against assets the do not have. For this, they charge we mugs a percentage. When we can't pay back, they lend us (including our governments) more paper at compounding interest charges. When the debts as a whole reach towards un-pay-back-ability, the pack of cards collapses - look around you.

Then (this is a killer), 'our' governments bail out the banks & put the charge on our tax bill! Old git Tom

Ah, but there is a subtle difference between laundering money and simply printing money with nothing behind it but "consumer confidence". But you got me dead to rights as most countries these days seem to be run by charlatans.

[brahmburgers]

Thai big shots have a way of avoiding responsibilities by changing affiliations.

TRT polititians tried doing that when they saw they'd have to face the music for the misdeeds - they just quit the party at the 11th hour and, presto, no responsibility (the next day, they can say; "I'm no longer a member of TRT, so that's the end of it.")

Even Thai gov't ministers slip from responsibility - by saying, in effect, "I no longer hold that office, so how can I be held accountable for what happened earlier? Ask the new minister, if you've got a contentious issue."

So it will go for Mr. Udom and 1-2-Gone - at least from his perspective.