THAI AIRWAYS NOT YET RAISING FARES DESPITE OIL PRICE HIKES

Thai Airways said it will not raise its fares yet, despite the hikes in oil prices.

Thai Airways Interim Chairman SOMCHAINUK ENGTRAKUL (สมใจนึก เองตระกูล) said the global oil prices that have increased at the beginning of this year would not affect the airliner's cost management, and there was no need as of the moment to raise fares.

Mr. SOMCHAINUK admitted however that the company's revenues in the first quarter of its 2005-2006 fiscal year was slightly lower than prediction. He noted that the previous fiscal first quarter figures were better as the period was before the tsunami disaster. However, the number of tourists is improving steadily, with the airline now carrying 78-80% of full passenger capacity on each of its flights.

Thai Airway's revenues from sales and services during the October to December 2005 period amounted to 43 billion baht, which is a decline of 3 billion baht from the same period last year. Profits from the period stood at 5.72 billion baht.

Source: Thai National News Bureau Public Relations Department - 17 January 2006

Very magnimous of them.

Contrary to the usual THAI policy of rasing prices to attract customers.

So raising prices has reduced the airline's total revenues.

Then logically cutting prices ought to lead to increased loads and increased revenues, no ?

The som-tam lady says - don't hold your breath in anticipation !

Thai Airways raised their fare for many of their international routes making other carriers a more attractive proposition.

Their in-flight service still remain superior, but those seats...............................