Thai Airways Not To Cancel Mae Hong Son Route

[george]

Airline accedes to pressure not to cancel route

BANGKOK: -- Thai Airways International (THAI) has bowed to the demands of Mae Hong Son people not to cease its service between the mountainous northern town and Chiang Mai. Acting THAI president Somchainuek Engtrakul struck the deal with local authorities and tourism industry leaders yesterday. They had expressed grave concern about the effect the cancellation of the service would have on the province's main revenue earner _ tourism.

Under the agreement THAI will operate three flights a day on the route using a 70-seat ATR twin turbojet plane. Its no-frills sister carrier Nok Air will provide one flight a day with the same type of aircraft to be leased from the national carrier, Mr Somchainuek said.

The arrangement, effective from November, will allow an evaluation of passengers' reactions to Nok Air's no-frills service, which Mae Hong Son industry leaders think passengers do not like.

THAI wanted to turn over all the secondary domestic routes, including the Chiang Mai-Mae Hong Son service, to Nok Air to cut losses, especially during the low season, and concentrate on other domestic trunk routes _ Bangkok-Phitsanulok and Bangkok-Trang.

Political and trade pressure was brought to bear on THAI not to end the service, sources said.

--Bangkok Post 2005-09-27

[george]

NOK AIR’S NEW ROUTE: Mae Hong Son launch facing delay

Low-cost carrier’s takeover of Chiang Mai flights from THAI hits local opposition

Nok Air is considering postponing its inaugural flights on the Chiang Mai–Mae Hong Son route following local opposition to the cut-price operator taking over the service from Thai Airways.

It is scheduled to take over the route on October 1, but its first flights may be postponed for at least two weeks, Nok Air executive vice president Sehapan Chumsai said yesterday.

Local tourist operators, together with 29 employees of Thai Airways International Plc (THAI) who work in Mae Hong Son, have called on THAI to continue the service because they fear that Nok Air, a low-cost operator, will abandon the service if it cannot make a profit.

Nok Air, a subsidiary of THAI, agreed to take over the route to allow THAI to save costs.

Some top executives of Nok Air and THAI met private tour operators in Mae Hong Son yesterday to discuss the matter.

“Nok Air will delay launching the service for at least two weeks, or until the three parties reach agreement,” Sehapan said.

THAI currently makes four flights a day between Chiang Mai and Mae Hong Son, using ATR-72 aircraft. The airline charges Bt1,500 for a round-trip, including tax and a fuel surcharge.

Sehapan said the price was actually lower than THAI’s cost of operating the route, adding that it was about the same price as might be charged by a low-cost airline.

“If Nok Air services the route, we may need to increase the airfare to more than Bt1,500. This might disappoint local people and travellers,” Sehapan said.

Nok Air will consider the fare on a business basis when it begins the service. If it finds it cannot make a profit on the Chiang Mai–Mae Hong Son route, it will stop the service.

Meanwhile, Nok Air yesterday announced what it calls “First in the World” services, providing new ticketing outlets for would-be travellers.

The airline’s chief executive, Patee Sarasin, said Nok Air ticketing would be available through Counter Service Plus at 7-Eleven convenience stores, ATM services offered by Siam Commercial Bank, Krung Thai Bank and Bangkok Bank, and an information browser and payment service offered by mobile-phone operator AIS.

“Nok Air and its partners are the first group in the world to create such distribution and payment services,” Patee said.

The move follows Nok Air research showing that one of the keys to attracting potential customers is to penetrate the services that are a part of their daily lives.

--The Nation 2005-09-27

[PeaceBlondie]

For a while there, I thought THAI was suspending flights, and didn't know that Nok would begin them. MHSon definitely needs flights. Either way, the trip by road is tortuous.

[Guest endure]

Airline accedes to pressure not to cancel route

The arrangement, effective from November, will allow an evaluation of passengers' reactions to Nok Air's no-frills service, which Mae Hong Son industry leaders think passengers do not like.

<{POST_SNAPBACK}>

Love that quote. Flying BKK-CNX on Nokair's "no-frills service" I can get a business class seat which I can select over the 'net for less than I pay for a cattle class seat with Thai. Long live no-frills airlines

[ovenman]

The arrangement, effective from November, will allow an evaluation of passengers' reactions to Nok Air's no-frills service, which Mae Hong Son industry leaders think passengers do not like.

On a thirty-minute flight from Chiang Mai to Mae Hong Son, what sort of full service does one really require? Are passengers expecting to be served a five-course meal? The only thing of real value that people potentially lose out on by flying one of the budget carriers like Nok is that the stricter 15 kg luggage limit does not allow them to bring all of their household effects with them, unless they want to pony up extra baht.

Anybody want to bet that the real objection here by Mae Hong Son industry leaders is the commission structure or lack thereof on Nok Air tickets?