New Airport For Ko Samui

[george]

END OF MONOPOLY: New airport for Ko Samui

THAI has plan to begin flights to tourist resort

The Transport Ministry plans to end Bangkok Airways' airport monopoly on Samui Island by constructing a second airport at a cost of Bt600 million.

"The Transport Ministry will complete a feasibility study on the second airport on Samui within three weeks," said Deputy Transport Minister Vichet Kasemthongsri.

Privately run Bangkok Airways is the only domestic airline operating air services to the island's airport, which the carrier built more than 10 years ago.

However, tourists have complained for a long time that Bangkok Airways' fares are too expensive. Currently, a round-trip ticket on the Bangkok-Samui route costs more than Bt6,000.

National carrier Thai Airways International has had a plan to launch a new service to Samui in the works for several years.

Vichet said the time had come for a second airport, which the ministry believes will be necessary to cope with expected growth in domestic air traffic.

There are 26 provincial airports, many of which are under-utilised. Some 21 of these are controlled by the Department of Aviation, Samui is controlled by Bangkok Airways, while Chiang Mai, Chiang Rai, Phuket and Hat Yai airports are run by Airports of Thailand Plc.

The Transport Ministry wants to expand the capacity of provincial airports to cope with the expected growth of domestic passenger traffic from 8 million to 20 million per year within five years.

Low-cost airlines are expected to propel substantial growth in the domestic market.

Chalor Kocharat, director-general of the Department of Aviation, said landing fees at Samui Airport - Bt90,000 - are too high. This compares to just Bt10,000 at many other provincial airports.

The cost of constructing a new airport on the island would be no more than Bt600 million, he said.

"The new airport will support the growth of tourism on Samui," he said.

The Transport Ministry also wants to construct new airports in Mae Hong Son and Uttaradit provinces.

Bangkok Airways called an executive meeting yesterday to discuss the government's plan to build a second airport on Samui.

--The Nation 2003-12-30

[happymanme]

can any one out there tell me why an island that you can ride around on a 125 scooter in 2 hrs needs 2 airports,

please please tell me why

this sounds more like sour grapes on the part of thai airways after all bangkok airways had the forsight to build it in the 1st place

wereas thai get theirs built by the goverment go figure

bk airways are overpriced if they were to reduce prices this would then probably go away....

i have to say samui airport has gotta be the nicest airport i've been to mainly cos theres not alot there but what is, is really nice

any how bk airways if ya are gonna drop the prices please,please do it before 25th jan so i can get the saving's when i fly out again

allan

[singa-traz]

These are annoucements only, and you will never see a second airport in Samui ... someone needs extra-cards for negociating with Bangkok Airways, wether to buy, pay for airport extension or renegociate landing fee.

Let's see who has the bigger mussle in this negociation ...

[samran]

this sounds more like sour grapes on the part of thai airways after all bangkok airways had the forsight to build it in the 1st place

It is sour grapes on behalf of Thai Air, but that is beside the point.

The central issue here is uncompetitive pricing practices regarding landing charges at Samui airport, and the fact that this is passed on to consumers who have to pay much more for a service than they should.

Many airports around the world have economic regulators to ensure that price competition is undertaken fairly. Regardless of being privately owned or not, the Department of Aviation issues airport operation licenses to all airports in Thailand and as secretariat to the Civil Aviation Board, is the effective airports regulator in Thailand.

As well as technical regulation, economic reglatory issues are becoming a concern at DOA and work is being done to ensure that access to all airports, which can be deemed as essential infrastucture, should be granted on a fair basis where the charges reflect the cost of providing a service. And trust me B90,000 is way to much to charge for landing fees at similar sized airports.

At the end of the day its about protecting the consumer, not Thai air.

[singa-traz]

this sounds more like sour grapes on the part of thai airways after all bangkok airways had the forsight to build it in the 1st place

It is sour grapes on behalf of Thai Air, but that is beside the point.

The central issue here is uncompetitive pricing practices regarding landing charges at Samui airport, and the fact that this is passed on to consumers who have to pay much more for a service than they should.

... And trust me B90,000 is way to much to charge for landing fees at similar sized airports.

At the end of the day its about protecting the consumer, not Thai air.

Protecting the consumer ... that's an interesting concept ... or should we say an happy side effect ...

Thai Airways will not be the only company benefiting from more competitive pricing, right ?

If it means BKK-Samui for 999 THB, I guess everybody win ... and maybe even Bangkok Airways, if they know how to catch the additional traffic that would be generated.

[Aitit]

Not shure that prices will drop when there is competitiuon, e.g. Thai Air flying to Surat, is not that much cheaper than flying with BKK Air to Samui.

None of my friends regards this as an option- I prefer rail or road anyway.

Where do they have in mind to establish that and for what, for the concrete lovers?

Samui is an island,there is not unlimited space, I always thought people come here for the nature- which is declining rapidly.

Maybe on top of the mountains, depending on how our PM is deciding what to do with the 8000 rai land he owns up there.

[the gentleman]

These are annoucements only, and you will never see a second airport in Samui ... someone needs extra-cards for negociating with Bangkok Airways, wether to buy, pay for airport extension or renegociate landing fee.

Let's see who has the bigger mussle in this negociation ...

Exactly!

[NedKelly]

I think it is incredible that Thailand allows this sort of thingto go on. I tis in the national interest to boost tourism to Samui and having cheaper flights would do it. Bangkok Airways has enjoyed a monopoly for a long time and now should be willing to share the infrastructure with the national carrier at least. It may not mean cheaper flights but would have the potential to go that way.

If Thai airways was smart they would put an airport on Koh Phangan and open up that island instead. Maybe the pollies dont own land there yet.......got to look after themselves. Like the new social order campaign......soon the regulations will come into effect with the zoning laws. the pollies will invest .....probably already own.......entertainment venues within the zones. the business of places outside the zones will be destroyed, so the places within the zones will becomes gold pots. Just a thought ! Scrooge McDuck would be chuckling about this !!

[Aitit]

I think it is incredible that Thailand allows this sort of thingto go on. I tis in the national interest to boost tourism to Samui and having cheaper flights would do it. Bangkok Airways has enjoyed a monopoly for a long time and now should be willing to share the infrastructure with the national carrier at least. It may not mean cheaper flights but would have the potential to go that way.

If Thai airways was smart they would put an airport on Koh Phangan and open up that island instead. Maybe the pollies dont own land there yet.......got to look after themselves. Like the new social order campaign......soon the regulations will come into effect with the zoning laws. the pollies will invest .....probably already own.......entertainment venues within the zones. the business of places outside the zones will be destroyed, so the places within the zones will becomes gold pots. Just a thought !  Scrooge McDuck would be chuckling about this !!

They are already talking about a Phangan airport, not shure which airline will make it, hope not BKK-Air.

Isn't shin-corps involved in an airline also?

Who is running the new airport in Trat, gateway to Koh Chang?

Just as I was told that half of Koh Chang is owned by the PM?

Wasn't there a promo for high end tourists for Koh Chang?

[happymanme]

but ned you say of bkk airways should stop the monopoly,but consider they are the ones who thought of,paid for and built the airport in the 1st place and like every over company the world aroud they are just trying to protect the investment when as far as i know no other bugger was even interested 10 years ago.

now after that apparent big thumbs up for bkk i do agree with every one that they should offer better fare prices but as for opening up the airport for other airlines bugger them if ya wanna land ther pay the baht.

as another poster said thaksins shin corp are getting into bed with a budget airline and doesnt anyone now smell a rat as to all this interference in a private company and its airport

samui is not an island of huge size only so many people can enjoy its pleasures at any one time so bkk's multiple flights as well as the ferries cater quite well i think

as for putting an airport on phan nang wat loony is thinking of that one of the last relativly easy, unspoilt? islands to reach

but hey thats just me perhaps you guys just enjoy loads of concrete and noise

allan

[NedKelly]

The airport in Trat is Bangkok Air also. So they will enjoy that monopoly for a while also. There are rumours about taksin owning a lot of land down there and at one of the major hotels down there (supposed to be owned by him ) they have bulldozed loads of mangroves and are attempting to make a false beach. There seems to be little or no planning and no care for the environment on Koh Chang. If you go down there, try and drive right to the end of the road......way past White Sands Beach.......at the end of the raod there is a resort which is nothing short of amazing......in the sense that it is a perfect example of how to destroy a natural environment and bring in man made structures that just do not fit in with the surroundings. They have built a hotel that looks like cruise ship with it's own small lake. It is a disgrace. Who would want to stay in a place like that ?

I agree that Bangkok Airways are protecting their interests in Samui. But when it gets to a situation where the government will build another airport, you have to admit that it will be destructive to Samui's environment and is realy overkill. BA hopefully will do the sensible thing and look to some sort of compromise. It is in everyones interest. All that government moeny would be best spent on providing a sound water supply for the locals who live down there. Last year there was drought and locals had no water, while big hotels pumped their own water from wells. When I say no water, I mean no water. The local waer authority said that they know what needs to be done but could not get the money to do it.

[samran]

but you say of bkk airways should stop the monopoly,but consider they are the ones who thought of,paid for and built the airport in the 1st place and like every over company the world aroud they are just trying to protect the investment when as far as i know no other bugger was even interested 10 years ago.

ahhhh...competition (anti-trust) policy is what we are talking about here.

Thailand actually has a Trade Compeition Act, which bans the expolitation of consumers. While a well written act, the definitions of what "competition" "monopoly" and "consumer exploitation" have not been clearly defined or interpreted by the courts.

If the act was applied properly using world wide standards ( a big wish here in LOS , arguably BKK Air's current pricing policy would be illegal. For instance, there is nothing wrong being a monpoly per se (eg, by good business strategy, or lack of room in the same market for a competitor), but it is illegal to use this position of dominance to exploit the consumer.

So while BKK Air has every right to protect its investment, it should only be able to make normal rates of return on its assets. If there was a proper capable regulator in place, then it would be easy enough to find a rate of return for a similar type airport and not allow BKK air to charge more than a certain amount.

While a regulator is a second best option, forcing the airport to open up to competition is a better way to let the market to do its job.

The problem with all of this is, the the reason why compeition is being forced onto BKK air, is because certain parties now want a piece of the action.

As for no other buggers being interested opening an airport 10 years ago, well maybe, but Thailand being Thailand, I think that there were interested airlines....but weren't able to....so to speak...

[flackjacket]

Ko Samui airport was constructed and paid for by Bangkok Airways, this has to be re couped in the cost of the ticket. They are not heavily subsadised as is Thai Inter.

Interesting to note that Bangkok Airways in 2002, was among the top 5% of WORLD airlines to acheive at least 95% slot times( to say they got 95% of their flights away within 5 minutes of advertised times. Some failures were due to delaying to allow late passengers to make the flighte ( Easy Jet take note) I do not represent the airline although I have been involved with aviation for 45 years, they have always given me first class service. Will Thai Inter give you the same service!! Where are they giong to build the new airport and who will get the kick backs. Maybe a Telecom exec.

[samran]

Interesting to note that Bangkok Airways in 2002, was among the top 5% of WORLD airlines to acheive at least 95% slot times( to say they got 95% of their flights away within 5 minutes of advertised times.

...I have been involved with aviation for 45 years, they have always given me first class service.

Fair points....

however could BKK Air acheive all these things while charging less? Probably. I'd like to see some competition and find out.

Additionally BKK air (if it wanted to be fairer to consumers) could insitute some sort of a dual till appoach to airport pricing, that is, separating out its monopoly assets and only charging a fair rate of return for those assets (runways, tarmacs. airside facitlities, refuling and airtraffic control), while keeping its airline pricing separate from its airport investment. Throw in a bit of competition and consumers would be happeir.

[Insight]

I just arrived back from Samui for the New Year. Had to drive to there and back from BKK as all BKK Air flights were booked up until the 6th. Busses and trains all had similar problems. Funny thing was, plenty of hotels were far from booked up and the place seemed hardly crowded.

Point is, demand is completely outspeaking supply, and when there's money to be made, surely BKK Air could cut a much more reasonable deal for use of their airport? It's only everybody who's going to benifit...?

[Aitit]

I just arrived back from Samui for the New Year. Had to drive to there and back from BKK as all BKK Air flights were booked up until the 6th. Busses and trains all had similar problems. Funny thing was, plenty of hotels were far from booked up and the place seemed hardly crowded.

Point is, demand is completely outspeaking supply, and when there's money to be made, surely BKK Air could cut a much more reasonable deal for use of their airport? It's only everybody who's going to benifit...?

If you find this hardly crowded this year, then I don't know.

Insight, where have you been staying? Which beach?

Samran , I'd prefer some competition also, but BA has a very save position in LoS.

E.g. another smaller airline, asked us to keep quiet about their interest in Phangan,

they are scared to death.

I'm not the one who wants an airport on Phangan, but some of the locals could not resist the big money offered by big investors.

Phangan, the pearl, will be a sad beauty soon, like Samui is now.

Seems nobody wants to learn from Patong.