THAI Chairman Upset Over Delay In Planned Set-Up Of Budget Airline

[webfact]

THAI chairman upset over delay in planned set-up of budget airline

BANGKOK, Jan 14 – Thai Airways International Chairman Ampon Kittiampon on Thursday voiced complaints over a delay in the planned set-up of the national-flag carrier’s low-cost airline, saying the company did not understand why the plan remains bogged down in the legal approval process.

He said THAI managed to turn its loss of more than Bt20 billion into a profit due to an improvement in fuel cost management, efficient currency exchange management, and air route adjustments.

To ensure its competitiveness with other airlines in a sustainable manner, the company proposed the establishment of its subsidiary to provide a budget airline service, but the plan has not progressed in the past three or four months.

Mr Ampon affirmed THAI had complied with legal procedures completely. Its management had clarified the planned establishment with the Finance Ministry for several months, but legal differences were still raised.

The THAI chairman said he did not understand why the plan remained stuck in the legal approval process.

“When I worked as the secretary-general of the National Economic and Social Development Board, I had an opportunity to oversee the establishment of a subsidiary of MCOT Pcl, which took only 45 days to complete. The planned set-up of the subsidiary of THAI proceeded in a similar nature. So, I don’t understand why it has not gone smoothly like MCOT.

“Should THAI lose a chance to earn revenue from the establishment of the low-cost airline, someone must take responsibility. The public should have a final say on the matter,” he said. (MCOT online news)

-- TNA 2011-01-14

[Ricardo]

So the improved-profitability was nothing to do with the massive price-increases on domestic-routes, then ?

But at least they made all the low-cost-carriers look even-cheaper, which won't harm the prospects, of his new LCC either.

Good on him, for 'blowing the whistle', about the inexplicable delays in obtaining the necessary approvals, definitely not due to a shortage of 'brown envelopes', to ease the process. But why can't he just expand Nok-Air again ?

Edited January 14, 2011 by Ricardo

[laurentbkk]

I thought NO CARE airlines was the low cost carrier of Thai airway . I stopped flying TG for a long time both international and domestic flights for the poor service , expensive prices. Hope TG will be back on track with better care for passengers.

[surayu]

But why can't he just expand Nok-Air again ?

Why? Would you? Have you seen what their noks looks like? lets not embarrass ourselfes any further....

[Carib]

Everywhere in the world where politics or national sentiments have a hand in an airline, or where governments hold a bigger part of the stock, things always get screwed up. It is as simple as that.

[Hog Head]

Perhaps the delay is because Newin is a major shareholder in Thai Air Asia and he does not like competition

[Payboy]

Perhaps the delay is because Newin is a major shareholder in Thai Air Asia and he does not like competition

What do you mean "perhaps" ?

[Guest]

But why can't he just expand Nok-Air again ?

Why? Would you? Have you seen what their noks looks like? lets not embarrass ourselfes any further....

What the aircraft look like is nothing to do with anything, apart from the fact that many Thais like it. Nok Air is a pretty good airline and deserves to be expanded.

[devdrinker]

Maybe some cheap routes to Samui, that would be nice..

[BangrakBob]

Maybe some cheap routes to Samui, that would be nice..

[MaiChai]

But Thai Airways already has Nok Air, and they just did a deal with Tiger Airways? So why another airline? Wouldn't it make more sense to expand Nok Air?

[mikebell]

Thai Air seems to be the only airline to operate a non-stop flight to Los Angeles costing 47000 baht. Breaking your journey in Taipei saves 10,000 with EVA. I am sure there is a market direct to West coast of America direct from Thailand.to

Maybe some cheap routes to Samui, that would be nice..

[fire and ice]

I think the Nok Air planes designs look excellent!

[Ricardo]

But why can't he just expand Nok-Air again ?

Why? Would you? Have you seen what their noks looks like? lets not embarrass ourselfes any further....

What the aircraft look like is nothing to do with anything, apart from the fact that many Thais like it. Nok Air is a pretty good airline and deserves to be expanded.

I might draw your attention to Bangkok-Airways' tropical-designs, or the TG-Jumbo with a royal-barge painted down the side, or even Air-Asia look pretty colourful, it seems to be fashionable here, to have colourful paintwork-designs.

Just as long as the plane is well-maintained, has well-trained crews & goes on-time for a good price, that'll do for me !

[ginjag]

But why can't he just expand Nok-Air again ?

Why? Would you? Have you seen what their noks looks like? lets not embarrass ourselfes any further....

What the aircraft look like is nothing to do with anything, apart from the fact that many Thais like it. Nok Air is a pretty good airline and deserves to be expanded.

I might draw your attention to Bangkok-Airways' tropical-designs, or the TG-Jumbo with a royal-barge painted down the side, or even Air-Asia look pretty colourful, it seems to be fashionable here, to have colourful paintwork-designs.

Just as long as the plane is well-maintained, has well-trained crews & goes on-time for a good price, that'll do for me !

Mr chaiman, instead of spending a bil on the budget, Make Thai International more affordable, your service is Cr-p and your planes are ancient. I was a big deal card holder, but not any more. Your prices have doubled on the domestic route, since oil prices halved. Do you have to charge upwards of 2000 bht to Bkk-from Udon. I can fly at less to Singapore. Air asia is the one-domestic. its cheap if you dont have food -seat No.......... take hand luggage. Nok air prices are high-but instead of flying in comp with air asia-they go to Don M. Get your act together with THAI-look after your dwindleing customers.

[asiawatcher]

I don't think Thai is a patch on its previous reputation of service or comfort. Food is atrocious, seating as always - cramped if you are not Thai, seating padding sux, is old and needs replacement, hostesses and cabin crew are still fine apart from the ones mincing up the aisles trying not to break finger nail, but pricing wise I think you can get good pricing if you try - we recently did Business Class to Krabi on Thai which was 500 Baht more than the economy fare - this rises or falls as per seasons. Flew HK on Thai in July but last month Emirates as Thai was nearly double - screwing people for the season! If Thai want to remain competitive then we should all stop its monopoly which is what I feel is the delay - giving a monopoly to any business in Thailand means someone is scamming money and we are always the losers.

[scorpio2369]

The Nok airplanes look FANTASTIC!!! If it provides cheap, safe airfare, then I am all for it. More flights within Thailand, more flights into Thailand, more economy into Thailand!!!