Thai Blasts Singapore Airlines Surcharge Cuts

[george]

THAI blasts SIA surcharge cuts

BANGKOK: -- Thai Airways International (THAI) yesterday lashed out at Singapore Airlines (SIA) for the ``unethical'' practice of charging substantially lower fuel surcharges on air tickets than the industry standard. Wallop Bhukkanasut, vice-president for sales and distribution at THAI, said SIA's move was a breach of the ethics guidelines of the Board of Airline Representatives in Thailand (BAR), in which both airlines are members.

He warned that SIA's strategy would only worsen the plight of the aviation industry which is already suffering from the effects of soaring jet fuel bills.

The national carrier has filed a complaint about SIA to the BAR, and has asked for a benchmark on fuel surcharges to be followed by all airline members.

SIA adds a surcharge of US$15 per sector for flights between Singapore and other cities in Southeast Asia including Bangkok, Jakarta and Manila, compared with $25 charged by THAI for regional flights.

While on the paper SIA said it would charge $50 per sector for all other flights, it actually charges less.

For instance, on the Singapore-Tokyo and Singapore-Osaka services, SIA charges $23, compared with $36 imposed by Japan Airlines and All Nippon Airways on the same routes, according to industry sources.

In any case, most airlines' fuel surcharges are below the levels that prevailing oil prices would merit.

For instance, THAI should be charging $28-29 per sector for regional flights and $78-79 for long-haul services, against the $50 levy currently in effect.

According to a THAI insider, the national carrier is absorbing 1.2 billion baht a month in costs for charging lower fuel surcharges that it should.

High oil prices were a major factor causing THAI to lose 4.77 billion baht for its fiscal third quarter ending in June.

When it announced a marginal increase in its fuel surcharge early this month _ $3 per sector for Southeast Asia flights and $5 for all others _ SIA said the adjustments offered only partial relief from its higher operating costs.

The head of SIA's Bangkok office was not available for comment yesterday.

Both THAI and SIA belong to Star Alliance, the world's largest airline group.

Alastair Carthew, director for corporate affairs in Asia-Pacific for Star, said yesterday that the alliance did not get involved in applying fuel surcharges, saying the policy was up to individual carriers.

--Bangkok Post 2005-09-27

[Guest George Bush]

This guy sounds pretty pissed. He is loosing money and face too.

[WhiteShiva]

This guy sounds pretty pissed. He is loosing money and face too.

<{POST_SNAPBACK}>

And conviniently blaming Thai Airways' problems on foreigners, in this case Singaporeans.

Make MP's pay for their flights on Thai Air - that should increase the revenues a bit....

[ovenman]

And conviniently blaming Thai Airways' problems on foreigners, in this case Singaporeans.

You beat me to it!

There may well be some merit in this charge of undercharging but on the other hand, THAI lost a significant amount of money this year and I'm sure that the TG pooyai are anxious to point the finger of blame anywhere other than at themselves.

[dr_Pat_Pong]

A B I G bit

[Rinrada]

And conviniently blaming Thai Airways' problems on foreigners, in this case Singaporeans.

You beat me to it!

There may well be some merit in this charge of undercharging but on the other hand, THAI lost a significant amount of money this year and I'm sure that the TG pooyai are anxious to point the finger of blame anywhere other than at themselves.

<{POST_SNAPBACK}>

And if they dont do something about their SKY HI ticket prices and re-instate the FULL milage programe for their last few faithfull F.F.Roc-i club supporters they will lose even more money this year.

Whatever you think of those new upstarts ..Etti and Qatar with their brand NEW super duper budgies with Full inflight services they are and will give the pride of LOS a very good run for thir money and at almost 1/2 price.

Singapore Air aint doing anything "unethical" they are simply true pros in the business and understand the market and more so market forces.

Their planes may be up in the clouds but their brains (unlike...) are well and trully on the Ground.

Over "ere" the el Cheapies have held back on fuel surcharges....and are booming...English word meaning....................get-tit..

Read the other day also that BMI one our other majors have CUT their fuel top up additions (by about Eu 5 a sector) due to the stabilising oil prices......not a case of CRISIS management........good judgement...TG ....Cmon krup..

[snoophound]

Yep

Its disappointing that airlines are hiding behind fuel surcharges,when many have pretty advantageous hedging programmes.

Still a lot of fat in Thai.....I have flown Thai in First a lot ,AU-Europe,using upgrades of course.

Always Thai freeloaders up front.

Still might accelerate the talk of a lufthansa shareholding or other cross border ownership.

And conviniently blaming Thai Airways' problems on foreigners, in this case Singaporeans.

You beat me to it!

There may well be some merit in this charge of undercharging but on the other hand, THAI lost a significant amount of money this year and I'm sure that the TG pooyai are anxious to point the finger of blame anywhere other than at themselves.

<{POST_SNAPBACK}>

And if they dont do something about their SKY HI ticket prices and re-instate the FULL milage programe for their last few faithfull F.F.Roc-i club supporters they will lose even more money this year.

Whatever you think of those new upstarts ..Etti and Qatar with their brand NEW super duper budgies with Full inflight services they are and will give the pride of LOS a very good run for thir money and at almost 1/2 price.

Singapore Air aint doing anything "unethical" they are simply true pros in the business and understand the market and more so market forces.

Their planes may be up in the clouds but their brains (unlike...) are well and trully on the Ground.

Over "ere" the el Cheapies have held back on fuel surcharges....and are booming...English word meaning....................get-tit..

Read the other day also that BMI one our other majors have CUT their fuel top up additions (by about Eu 5 a sector) due to the stabilising oil prices......not a case of CRISIS management........good judgement...TG ....Cmon krup..

<{POST_SNAPBACK}>

[ovenman]

Still might accelerate the talk of a lufthansa shareholding or other cross border ownership.

I'd be surprised if that ever comes to pass. Whenever THAI has brought up this idea of taking on a foreign strategic partner, the share in TG that they are willing to give up has always been so small that it's hard to picture any other airline actually wanting to take up their magnanimous offer. Seems like all an outsider would do is put up their money and then have no say in the goings-on at THAI (which I am sure is exactly the scenario that TG pooyai would love).

[snoophound]

Too true

I am sure the germans would get them efficient!

Just keep the Thai Stewardesses please.

Those Lufthansa dragons are even rougher than United (well nearly)and Qantas

Still might accelerate the talk of a lufthansa shareholding or other cross border ownership.

I'd be surprised if that ever comes to pass. Whenever THAI has brought up this idea of taking on a foreign strategic partner, the share in TG that they are willing to give up has always been so small that it's hard to picture any other airline actually wanting to take up their magnanimous offer. Seems like all an outsider would do is put up their money and then have no say in the goings-on at THAI (which I am sure is exactly the scenario that TG pooyai would love).

<{POST_SNAPBACK}>

[ovenman]

...aside from the desires of the TG pooyai to retain their power, I can't picture the Thai government ever giving up any control in the goings-on at THAI to a foreign interest. Major, major loss of face...

[speleo]

Thai Airways International (THAI) yesterday lashed out at Singapore Airlines (SIA) for the ``unethical'' practice of charging substantially lower fuel surcharges on air tickets than the industry standard. Wallop Bhukkanasut, vice-president for sales and distribution at THAI, said SIA's move was a breach of the ethics guidelines of the Board of Airline Representatives in Thailand (BAR), in which both airlines are members.

And I find it 'unethical' that the airlines have a cartel which are setting surcharges. Does the cartel also set the ticket prices?

Wouldn't this be illegal in the States or Europe? I appreciate that in Thailand they can do what they want, but the cartel is setting prices on sectors to Europe, etc.

[Khun Jean]

Wallop Bhukkanasut, vice-president for sales and distribution at THAI, said SIA's move was a breach of the ethics guidelines of the Board of Airline Representatives in Thailand (BAR), in which both airlines are members.

That'll teach them. Never make ethics guidelines in a BAR!

[britmaveric]

Capitalism is great isnt it??