New Airport Operations Costly To Low-cost Carriers

[george]

New airport operations costly to low-cost carriers

BANGKOK: -- Moving operations to Thailand's new Suvarnabhumi airport will impose an additional cost of up to Bt700 million (over US$18 million) to low-cost carriers, an airline executive said Sunday.

Udom Tantiprasongchai, President of Orient Thai Airlines, operater of One To Go budget airline, said low-cost carriers--including his own company--will be affected by the government's policy to open Suvarnabhumi International Airport for commercial use on September 28.

There are several reasons why Mr Udom is unhappy. For a start, low-cost carriers have not yet been assigned the check-in counter positions where they will be expected to operate. The airport authority has not yet decided where to put them.

Secondly, all three low-cost carriers have yet to determine how their check-in practices can be brought into compliance with the CTX 9000 luggage scanners--whose use is mandatory at the new airport--which the carriers say will cause flight delays.

Most important for the low-cost carriers to harmonise their check-in practices to comply with the new airport system would impose additional costs–-causing an increase from the current average of 60 baht per passenger to 100 baht.

As the three companies are transporting on average 10,000 travellers per day, the increase will translate into some Bt700 million (US$18.4 million) in additional costs. The executive said it would be hard to pass on the burden to the passengers, while the additional cost will impose strains to the carriers' own bottom line.

Mr. Udom said the low-cost sector representatives have conveyed their concern about the passenger check-in system to caretaker Deputy Transport Minister Phumtham Vejjayachai who promised to try to solve the matter. costly to low-cost carriers

BANGKOK, July 16 (TNA) – Moving operations to Thailand's new Suvarnabhumi airport will impose an additional cost of up to Bt700 million (over US$18 million) to low-cost carriers, an airline executive said Sunday.

Udom Tantiprasongchai, President of Orient Thai Airlines, operater of One To Go budget airline, said low-cost carriers--including his own company--will be affected by the government's policy to open Suvarnabhumi International Airport for commercial use on September 28.

There are several reasons why Mr Udom is unhappy. For a start, low-cost carriers have not yet been assigned the check-in counter positions where they will be expected to operate. The airport authority has not yet decided where to put them.

Secondly, all three low-cost carriers have yet to determine how their check-in practices can be brought into compliance with the CTX 9000 luggage scanners--whose use is mandatory at the new airport--which the carriers say will cause flight delays.

Most important for the low-cost carriers to harmonise their check-in practices to comply with the new airport system would impose additional costs–-causing an increase from the current average of 60 baht per passenger to 100 baht.

As the three companies are transporting on average 10,000 travellers per day, the increase will translate into some Bt700 million (US$18.4 million) in additional costs. The executive said it would be hard to pass on the burden to the passengers, while the additional cost will impose strains to the carriers' own bottom line.

Mr. Udom said the low-cost sector representatives have conveyed their concern about the passenger check-in system to caretaker Deputy Transport Minister Phumtham Vejjayachai who promised to try to solve the matter.

--TNA 2006-07-16