New Airline: Fly Bkk-chiang Mai For 999 Baht

[george]

One-Two-Go, a new low-fare division of Orient Thai, launched 757 services this week linking Bangkok and Chiang Mai 9 times daily with a promotional fare of 999 baht (less than 22 EUR).

One-Two-Go said it aims to serve other Thai destinations that include Phuket followed by Khon Kaen, Chiang Rai and Hat Yai. 1-2-GO intends to lease 6 (six)757s for its domestic and international routes this year and next.

See press release below, and some photos of two of their aircrafts:

[george]

Press release

Orient Thai Airlines says its low-cost operation is prepared for a dogfight with AirAsia and is ready to match any fares offered by the Malaysian-born carrier.

''We are prepared to go one step ahead of AirAsia and match its offerings both in terms of destinations and fares,'' Udom Tantiprasongchai, chief executive of Orient Thai Airlines, said in an interview yesterday.

The carrier's no-frills airline, known as One-Two-Go, is scheduled to start service on Dec 5 with a Bangkok-to-Chiang Mai route at just 999 baht for a one-way ticket. The promotional rate will be valid for one month.

AirAsia yesterday said it would charge ''less than 1,000 baht'' for the same services which it may start ''early next year''.

Thai Airways International charges about 2,000 baht for a one-way ticket from Bangkok to Chiang Mai.

Mr Udom, who has also had experience operating an airline in Cambodia, said One-Two-Go also intended to start operating scheduled services on the Bangkok-Kuala Lumpur route ahead of AirAsia.

Orient Thai Airlines will be leasing as many as six 200-seat Boeing 757 jets to accommodate its low-cost operations as well as its mainstream international operations, Mr Udom said.

The first 757 is due to arrive in the next few weeks to serve the ''One-Two-Go'' flights to Chiang Mai.

''Even though we will lose money, we have to do it to make ourselves known,'' Mr Udom said, noting that AirAsia was likely to apply conditions to whatever low-fares it would offer with only a limited number of seats being offered at an unrealistically low prices.

''On One-Two-Go, when we say 999 baht, it applies to all of the 200 seats on the 757 jet, period,'' he said.

Mr Udom criticised Shin Corp, the telecommunications conglomerate founded by Prime Minister Thaksin Shinawatra, for letting a foreign airline use legal loopholes to set up a local carrier.

''When people asked whether I was concerned about confronting the influential Shin Corp group with Prime Minister Thaksin's backing, I said no, because I know we can compete well in business terms,'' he said.

Shin paid 250 million baht for a 50% stake in AirAsia of Malaysia, which reduced its share in the carrier to 49%. The two companies have set up a joint-venture company in Thailand, known as AirAsia Aviation Co, to run the Thai businesses in compliance with Thai laws. Another Thai investor will hold the final 1% for majority Thai control.

Meanwhile, Transport Minister Suriya Jungrungreangkit said yesterday that he would ease restrictions on fare setting to allow domestic conventional airlines to compete with the future low-cost carriers.

Mr Suriya said that minimum airfares set by the Aviation Department would be terminated to allow full market competition. Maximum airfares would still be applied to protect consumers.

Suthep Seubsantiwong, executive vice president for commercial affairs of Thai Airways International, said the national carrier remained committed to launching a low-cost airline next year.

Capt Yothin Pamon-montri, chairman of PB Air, another privately owned airline, said his airline was not competing with the low-cost venture as it had different target customers.

[bartender100]

I have booked this flight for this wednesday,but there is no on-line booking,and they don't accept credit card over the phone.

They only give you a booking ref.

So there is going to be 5 flights a day= 1000 pax paying at the airport.This does not seem a sound way.

[george]

Update:

Demand for cheap seats high _ Orient

Four flights a day could rise to 13

BANGKOK: The public response to the low-cost services introduced by One-Two-Go has given Orient Thai Airlines, the owner of the budget carrier, the encouragement to press ahead with expansion.

Udom Tantiprasongchai, chief executive of Orient Thai, said yesterday that sales had confirmed his earlier conviction that there was a real and strong demand for such flights in Thailand.

Since Dec 1 when One-Two-Go started selling tickets, the company has been selling an average of about 3,000 tickets a day while its call centre has been jammed with calls for seat reservations.

Consequently, Mr Udom said the airline was in the process of increasing the flight frequency on its first route _ Bangkok-Chiang Mai _ from four flights a day. Flights are expected to reach the maximum 13 a day just before the Chinese New Year on Jan 22.

One-Two-Go currently operates two Boeing 757-200s, whose capacity ranges from 210 to 233 seats depending on configuration.

Mr Udom said he believed passenger demand for One-Two-Go services would continue even after the end of the current promotion period, under which a one-way Bangkok-Chiang Mai flight costs 999 baht, excluding 104 baht for tax and insurance, ends on Dec 24.

On Dec 25, the fare will rise to 1,400 baht excluding tax and insurance.

One-Two-Go plans to acquire four more Boeing 757-200 jets next year and start direct services from Bangkok to major cities such as Phuket, Khon Kaen, Chiang Rai and Hat Yai.

Mr Udom admitted the shortcoming of the reservation system and ticketing facilities that have not been able to handle all inquiries from the public.

``The market response is stronger than we expected and we are fine-tuning our operations to cope with demand,'' he said in an interview.

In another development, Thai Airway International Plc (THAI) said it would add 31 additional flights on five domestic routes to address demand during the New Year holiday period.

It will also use larger aircraft in order to improve capacity to handle increasing passenger traffic.

From Dec 26 to Jan 4, THAI will add eight flights to the Bangkok-Chiang Mai route, six to the Bangkok-Chiang Rai route, another six to Bangkok-Phuket, 10 to the Bangkok-Krabi route, and another flight to Bangkok-Trang.

THAI executives said the move would enable the carrier to accommodate an additional 20,000 passengers, a 10.6% increase from normal capacity.

--Bangkok Post 2003-12-09