Bangkok Post and Airliners.net are both reporting Phuket Air's demise.

http://www.bangkokpost.com/Business/31Aug2005_biz01.php

cv

My totally uninformed opinion is that Phuket Air's downfall was the Long Haul routes, they should have stayed regional for (a lot) longer, maybe we would have seen a different story...

totster

My totally uninformed opinion is that Phuket Air's downfall was the Long Haul routes, they should have stayed regional for (a lot) longer, maybe we would have seen a different story... 

As I mentioned in another thread, there is something not-quite-right about an airline that operates Bangkok-London and Bangkok-Mae Sot amongst its less than half-dozen routes. A bit of a bizarre business plan...

http://www.phuketgazette.net/news/index.asp?id=4493

Phuket Air ‘will not close down’

BANGKOK: Capt Chawanit Chiamcharoenvut, Executive Vice-President of Phuket Air, this afternoon confirmed to the Gazette that Phuket Air is not going out of business, but will instead expand its local routes.

The announcement came after a report in today’s Bangkok Post that quoted Senator Vikrom Aisiri, founder and president of the airline, as saying the company was “preparing for a ‘soft landing’ to limit further losses and troubles”.

Phuket Air, Sen Vikrom was quoted as saying, will be “ending most scheduled flights, ceasing charter operations and leasing nearly all of its fleet including the nine Boeing 747 jumbo jets.”

The article also reported that K. Vikrom had said that “he looked back on four years of prejudice, negative perceptions from authorities, the media and even some members of the public, at home and overseas.”

Today, however, after coming out of a meeting lasting much of the day, Capt Chawanit confirmed a report in today’s Nation newspaper, in which he was quoted as saying that Phuket Air will scale down its long-haul operations and instead focus on its local routes.

“I can confirm 100% that we are continuing in the aviation business and will expand our domestic routes. I guarantee it,” Capt Chawanit told the Gazette.

“I heard Sen Vikrom talk with the Bangkok Post reporter yesterday and he sounded very hurt, [after the] pressure and disappointment of having much bad press that was not true.

“I asked him [K. Vikrom] today why he said that, because people would be shocked to hear it. I have already explained to the Bangkok Post reporter that it’s not true,” he said.

Capt Chawanit said that, far from closing, the airline is considering adding a three-flights-a-week service between Chiang Mai and Udon Thani in October, and boosting flights between Bangkok and Yangon from two to four a week.

Phuket Air currently operates three domestic flights, Bangkok-Buri Ram, Bangkok-Mae Sot and Bangkok-Ranong, and one regional route – Bangkok-Yangon.

So now, while the President makes an announcement, the Vice President makes a counter announcement, stating just the contrary!

This airline, after showing how poorly they manage their operations, how poorly they maintain their planes, how poorly they deal with safety, now demonstrates how poorly they handle their public relations! Are they just able to do something well?

Whether they continue to operate or not, who will still want to fly with them?

So now, while the President makes an announcement, the Vice President makes a counter announcement, stating just the contrary!

This airline, after showing how poorly they manage their operations, how poorly they maintain their planes, how poorly they deal with safety, now demonstrates how poorly they handle their public relations! Are they just able to do something well?

Whether they continue to operate or not, who will still want to fly with them?

I imagine the vast majority of travellers cannot easily tell a brand new 747 from an old rickety one. If the ticket price is 10% less, they'll take it.

cv

My totally uninformed opinion is that Phuket Air's downfall was the Long Haul routes, they should have stayed regional for (a lot) longer, maybe we would have seen a different story... 

As I mentioned in another thread, there is something not-quite-right about an airline that operates Bangkok-London and Bangkok-Mae Sot amongst its less than half-dozen routes. A bit of a bizarre business plan...

<{POST_SNAPBACK}>

Couldn't agree more. It's the old greed factor. Air Andaman was after more profitable routes, tried to go regional and failed. PB Air according to rumours is having a bad time with its China expansion. Bangkok Airways remains a model of realistic airline management, so far.

Hard to say with any airline how safe you are - basic blind trust when you think about it.

The end was coming when Phuket air stopped flying into and out of Phuket - hardly an apt name considering they dont even fly there anymore....

Having said that, I actually feel quite sorry for them but thats not how business works, something they have found out the hard and expensive way.

I am still amazed at the amount of people who think there is a return in the travel business - its is one of the worst cyclical businesses to be in, coupled with huge external factors way beyond your own control and at best tight margins for the investment costs. Plus you need very very deep wallets to get over the rough periods.