Thai govt wants to raise fares of 'low-cost' airlines

[iReason]

“Suchinda Cherdchai, the owner of several major bus companies, filed a complaint with the government”

“Suchinda, aka Lady Giew, is believed to have strong ties with Thai authorities."

"According to Isra News, Suchinda's companies have secured over 1.9 billion baht worth of contracts with at least eight state agencies in the past ten years.”

Nothing new here.

The dinosaurs still rule in Thailand.

Absolutely ridiculous.

And people here talk about education.

Who's going to educate the educators?

Edited January 9, 2015 by iReason

[rudolfvaselino]

Heineken should complain Beer Chang is too cheap. Long live the free market. What a dumbo's government.

[Tomtomtom69]

No one will need to fly anyway when the Chinese finish the Rail-a-Thon they are planning for Thailand

Not quite. We're talking about one rail route, and it's simply a duplication of the tracks, not exactly a high-speed rail link as had been talked about in the past. Maybe you can travel up to 100km/h, but if travelling up to Khon Kaen or Udon a plane will still be faster.

As for Bangkok-Chiang Mai, the HSR plan announced by then PM Yingluck seems to have been either completely shelved or forgotten about. Not to mention Den Chai-Chiang Khong, and Bangkok-Hua Hin.

[Briggsy]

Virtually every field (in which Thai companies face no foreign competition) are a monopoly or a price cartel. The problem here is that 2 industries are competing with one another. The bus companies don't like it. The bus companies as government concessaires are very close to the government and the politically inept military men come out with ridiculous statements.

[Tomtomtom69]

Junta is backward thinking and totally out of step on this one. As mentioned, if bus companies are hurting due to other forms of travel, smarten up, get your act together and offer a good service. And I posit it's not just the price either. People are simply fed up of doing 12-hour+ journeys to the capital when they could get there in an hour. This goes for government employees, too, who's supervisors would send them on a bus or train... but now their budgets can allow them to fly and thus be more productive.

It is 2015, junta, not 1815. Get with it! Buses are a short-haul idea in this century, flying is the way forwards, or is it that you would just prefer to keep your people down? pffft!

That's true. Personally I'm not big into flying, but I do like driving. Even so, I think if the government could improve the roads and build some much needed motorways and expressways linking Bangkok with outlying provinces all the way to the borders, the journey times could significantly improve. It's unacceptable that a 560-odd km journey to Udon Thani takes like what 8-9 hours by bus and maybe 7-8 if you're lucky by car. It should take just 5-6 hours. But because of the horrible roads, with their u-turn bays, trucks overtaking at 60km/h slowing you down, there's no way it can be faster under the present circumstances.

If a bus journey to Udon could be shaved down to say 6 hours then the bus companies might become competitive, but if takes all day as you say, let the people fly.

[NCC1701A]

"is this in fact not a cheese shop?"

"Nudge, nudge. Wink wink. Say no more! Say no more!"

"Thailand’s military government is asking domestic “low-cost” airlines to raise their ticket prices to prevent stealing market share from inter-provincial bus companies."

"you killed everyone in the castle!"

"sorry..."

"shes got huge tracks of land!"

[tomacht8]

Hard to believe.

What a Stone Age thinking.

Innovation, a good product and good management beats,
Nepotism, old relationships and a lousy, overpriced product.
Now the bus company whine like a little child.
Big brother help me.

Are they really already adults of legal age?

[Ozziepat]

The problem was conveniently misdefined to enrich the Thai bus company owner and shaft "the people," who will benefit neither from improved bus service nor inexpensive air alternatives. These are the same decision makers who are making far-reaching decisions about huge debt-financed infrastructure projects, complex legal and government systems, land and water resource usage, key commodity pricing and just about everything else. Not a confidence builder, this.

[Misterwhisper]

How about if those bus companies lowered their ticket prices to become more competitive?

But hey, I forgot. "Competition" is a concept totally alien to a lot of local business operators.

[honoluludave]

The airlines are not loosing any money flying at the price they have set. Plus they offer a quality service for the price they charge. And all you have to offer is a run-down slow bus that takes 11 hours to get to Bangkok. I am going to fly everytime

[jcsmith]

Sounds like someone has their hand in the bus pie.

[JOC]

Anyone in doubt anymore??

The junta is slowly (?) moving the country backwards to the good old days!!

[JOC]

What can possibly go wrong??

[arthurwait]

This is nothing to do with buses but shares in an overpriced airline.

[zydeco]

“Suchinda Cherdchai, the owner of several major bus companies, filed a complaint with the government”

“Suchinda, aka Lady Giew, is believed to have strong ties with Thai authorities."

"According to Isra News, Suchinda's companies have secured over 1.9 billion baht worth of contracts with at least eight state agencies in the past ten years.”

Nothing new here.

The dinosaurs still rule in Thailand.

Absolutely ridiculous.

And people here talk about education.

Who's going to educate the educators?

Just saw a photo of her. Can't post it, because it's from the Bangkok Post. But, wow, one look at that face ought to make a plane crash. Maybe she should just go out to the end of the runway and scare those 737s to death.

[zydeco]

Maybe Ms Suchinda should get into the low cost airline industry rather than running to the junta complaining of having competition.

Maybe the government can make her the ambassador to North Korea in that new embassy they plan on opening.

[tomacht8]

Sounds like someone has their hand in the bus pie.

Why this Air Chief Marshal doing Suchinda Cherdchai, the owner of several major bus companies such a favor,

to intervene a free market and to protect and shield the worse product?

[lewy67]

I reckon the big buses are losing as many, if not more, passengers to the inter-provincial and provincial - Bangkok minivans. So they are copping it from both the budget airlines and the minivans. The minivans are cheaper and a lot more convenient with flexible pick up and drop off options. The buses are mostly rubbish and better alternatives by road and air mean they have to lift their game. The comments and position of the minister are lunacy.

[RKASA]

I just booked a flight for the wife before I even saw this today - she has to go to a funeral. Her brother called and suggested the bus - I said 'she will see you there if you make it'.

[ttthailand]

If an airline can pay 10 million dollars (guess) for a plane and charge 1,000 baht for a ticket and make a profit and a bus costs a fraction of the price of the plane and charges 500 baht for the same distance of travel and can not make a profit where is the problem here? Yes you guessed it ..... what is the problem .... Greed !!! Only greed !!!

[bapoboy]

Thai lion air and nokair have good prices, but I think airasia it's still expensive.

[Suffinator]

BANGKOK – Thailand’s military government is asking domestic “low-cost” airlines to raise their ticket prices to prevent stealing market share from inter-provincial bus companies.

Using the word 'Stealing' ... goes to show that they have no concept of 'competition' or learning how to 'compete competitively ... more nationalistic protectionism.

[kaiyaibob]

At least the Airlines have one advantage over the bus companies in that the pilot finds it extremely difficult to run away from the scene of an accident...unlike the bus drivers

I wonder if the Cherdchai family travel long distances by bus??

Edited January 9, 2015 by kaiyaibob

[realenglish1]

This is laughable. Do you want to sit on a bus for 10 hours to go to Chang Mai via Bangkok or fly on a plane and get their in 1 hour.

Even if I did half to pay more I would fly and most people feel the same way. This has little to do with price as it does with convenience.

And on Top of that The government has no right to intervention in private enterprise.

It they do then watch major companies bolt from Thailand to more friendly countries.

A note to the bus owners If you cannot compete then maybe you have had your day in the sun and its time to hang up the hat

[bangrak]

A country where it is possible to file a complain because your competitors offer better prices than you, cannot be a free market economy...

A country where the Minister of Transport is an Air Chief Marshall, a Military, lacking any expertise in the field too, cannot be a democracy...

A country where airlines can offer cheaper fares than bussing companies, is a country where the bus fares are maybe artificially inflated...

A country where a Minister can ask companies to raise their prices, to please an uncompetitive other one, can only be a banana country...

When the (wealthy, influential) Cherdchai family cannot offer bus tickets cheaper than airline tickets, ACM Prajin could propose to have the price structure and accounts of the Cherdchai bus transport companies checked, by a third party accountancy firm, maybe some 'expenses' could be, once 'explained'(!), sharply reduced... But don't ACM Prajin and the (wealthy, influential) Cherdchais have some (wealthy, influential) friends in common, like f.i. a family, who was also in bus transportation, and whose most known member is currently living abroad...?

[bkkjames]

What's next. Tot complaining about too low prices of mobile phone rates. Lol

[DM07]

Here is one day in Khun Suchinda's everyday schedule:

she get's up at 4 am to catch a taxi to the Northern bus terminal. There she walks into the old ticket counter- hall, where the sweet smell of sweat, urine and som tum meets here pretty nose.

She stands in line patiently, until it is her turn to pay her 250 baht to Korat.

Now it is time for her to step outside- she was a bit unlucky: all the early buses are packed, so she will have to wait until 9 am.

Surely she could sit on a comfortable chair in airconed waiting- hall and read the latest stock market- news...oh wait...it is the bus terminal, which mostly means no seats and no aircon! The sun is now coming up and turns the bus terminal into the outer realms of hell, temperature wise.

Finally her buss arrives: it has no safety- belt, the aircon can hardly cool the packed vehicle and she is in for a 4 hour ride between smelly feet, sweaty armpits and marginal equipment, steaming up the hills of Khao Yai.

...OR...she just takes a plane!

[mikemac]

Funny ! If they raised the fares of "low-cost" airlines in some cases by even one baht they would actually be the most expensive airlines.

There are cases where flying with AirAsia is exactly the same cost as flying with Thai Airways, once you add on the baggage levee.

The government's reasoning for this latest bright idea is nothing short of madness. I believe Chalerm has jumped ship and is now employed by the junta, and he is suffering badly from earache.

And to hell with the dodgy bus companies !

[Katipo]

Too often the way in Thailand. Instead of improving the service you are offering; try to ban your competitor, obtain a pecuniary advantage, or otherwise manipulate the law to ensure you stay ahead.

[ExPratt]

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BANGKOK – Thailand’s military government is asking domestic “low-cost” airlines to raise their ticket prices to prevent stealing market share from inter-provincial bus companies.

Using the word 'Stealing' ... goes to show that they have no concept of 'competition' or learning how to 'compete competitively ... more nationalistic protectionism.

How much would they like the rise to be , into the "Un-Affordable" range ?. So all the people flying now have to swap their 2 hour A to B , for a 12 hour rolling ,near death experience, to keep the bus companies happy and in business