Thai Transport Ministry denies imposing lower limit on air fares

[webfact]

Transport Ministry denies imposing lower limit on air fares

BANGKOK, 13 January 2015 (NNT) – Lower limits have not been placed on low-cost airlines' fares even though a capping of the upper limit does exist, according to Transport Minister ACM Prajin Juntong.

Responding to comments on low-cost airlines' fares restriction being circulated through social media, the transport minister said each airline has the rights to set its fares as low as it wanted, although he was concerned about excessively low fares reflecting badly on each of the airline's revenues and services.

Although the Civil Aviation Department enforces a maximum limit on fares, there is no minimum one; thus the airlines may compete freely, with the resulting competition being of benefit to the public.

ACM Prachin elaborated that Transport Ministry officials had recently discussed the complaint of coach businesses about not being able to compete with the low prices of air tickets charged by some airlines.

He noted that the ministry needed to give priority to the benefit of the public as well as to fairness.


-- NNT 2015-01-13

[Pib]

Flip-flop.

[robblok]

What a tool.. al to protect the buses. If the airlines were making a loss on them they would not do it. Let the buses lower their price and increase safety if they want more passengers.

[ChrisY1]

If this is an attempt to appease certain bus companies.....then Thailand would be heading in the completely wrong direction.

IATA would most certainly have something to say about free market air travel and the protection of an industry away from the airline industry.

The only thing this would likely achieve is lower passenger levels......which in turn would mean less flights to maintain bum numbers on the airline seats.

Another indication of total ineptness!

[webfact]

Prajin denies ordering budget airlines to increase fares



BANGKOK: -- Transport Minister ACM Prajin Juntong today denied widespread share in the the social media that he ordered budget airlines to increase fares on domestic flights to help other mass transport services suffering from cut-throat air fares.

ACM Prajin said he never issued any such order and never gave interviews about the minimum price control for budget or low-cost airlines.

But he admitted of saying he did not want these airlines to offer cut-throat air fares as it could affect competition in the public transport services.

Earlier bus operators met the minister after they were asked to lower their bus fares after retail oil price was lowered several times but they still did not lower bus fares on inter provincial destinations. Instead they claimed of high operation cost when low cost airlines offered cut throat air fares on provincial destinations, attracting potential customers to shift to plane from bus services.

ACM Prajin said his interview was misinterpreted and was against what he intended to communicate.

He said the Civil Aviation Commission has capped the ceiling of air fares but has no control on minimum rates, therefore he has no authority to issue any orders to increase the fares.

But he said he would like to see low-cost airlines to adjust fares in accordance with true operation cost.

He said cut-throat air fare was just market campaign and to stimulate sales but with limited seats.

He said he used to make reservations for such promotion but never achieve in getting a seat.

He added he would like low-cost airlines to show more responsibility in services with sincerity and justices to customers.

Source: http://englishnews.thaipbs.or.th/prajin-denies-ordering-budget-airlines-increase-fares


-- Thai PBS 2015-01-13

[Rob8891]

He added he would like low-cost airlines to show more responsibility in services with sincerity and justices to customers.

And the bus companies show responsibility?? Yeah, right.

[thhMan]

With school children being killed, passengers being killed, bus drivers running away from the scene of an accident, the pure disrespect and contempt shown by bus drivers to other vehicles, its no wonder Thai people are flying.

Some bus drivers promote everything thats bad about coach travel in the way they are seen on public streets by other Thais. What do they expect?

Some goes for Taxi drivers, tuk tuk drivers and so on.

You sow what you reap!

[wvavin]

I could not believe this because I am dead sure I read this news and very sure they are talking about the fare increase on the budget airfare because of the drop in inter provincial bus passenger volume. So for now they deny everything? This is another reminder to potential investors on how scary to do business in Thailand.

[Suffinator]

Where do they dig these people up from?

[Valentine]

I suppose the denial is now about saving face after the clanger he dropped.

[Leung Falang]

Regulation of common carriers is "common" in the developed world, not minimum pricing for more modern methods, otherwise, we would still be in carts pulled by beasts of burden. Talking out loud like this minister could be rewarded with being fired for stupidity. I am lucky the airlines do not charge passengers by weight.

[Thai at Heart]

These people are slowly but surely going down a plug hole.

Why is he even involved in pricing of anything? Why does he sit to even discuss about ticketing for buses? Stay out of it, and let the market sort it out. More competition, not less is the way forward.

[maidee]

what do you call when a governement order private companies how to manage their business ?

but their own THAI is in deep red because of mis management

[Doc46]

All about the Buses,,,,,Cheaper fuel,no lower ticket prices there,,,,,,Self renowned greed/bus companies.

[Lee4Life]

Businesses that have to compete with others become healthier for it, the lack of competition creates businesses that offer poor services at inflated prices.

[smutcakes]

And this guy was Chairman of Thai Airways until August...............

[Johnny S]

Where do they dig these people up from?

Can find them everywhere in any office in LOS - The idiot in a suit thinking he is king of the World .... 5555

[Baerboxer]

These people are slowly but surely going down a plug hole.

Why is he even involved in pricing of anything? Why does he sit to even discuss about ticketing for buses? Stay out of it, and let the market sort it out. More competition, not less is the way forward.

Because the HiSo rich lady who runs bus companies and complained has been making vast profits for years without having to care about competition (which she'd have blocked one way or another), customer service, quality, safety or value for money. She's used to charging what she likes and people having to take it or leave it.

Now she might have to compete, provide value for money and a service that is satisfactory - too much like hard work especially if margins are cut.

Obviously she is connected enough to stir things up.

[MrY]

And this guy was Chairman of Thai Airways until August...............

...and therein lies the answer. It's not that budget carriers are taking away business from bus companies (ZFG), but other carriers low fares are eroding Thai Airways' and Thai Smile's (and Nok Air's, of which THAI is a major shareholder) share of the market.

[bronco10250]

And this guy was Chairman of Thai Airways until August...............

...and therein lies the answer. It's not that budget carriers are taking away business from bus companies (ZFG), but other carriers low fares are eroding Thai Airways' and Thai Smile's (and Nok Air's, of which THAI is a major shareholder) share of the market.

Yes, thats the way it is!

[Balance]

Prajin denies ordering budget airlines to increase fares

BANGKOK: -- Transport Minister ACM Prajin Juntong today denied widespread share in the the social media that he ordered budget airlines to increase fares on domestic flights to help other mass transport services suffering from cut-throat air fares.

ACM Prajin said he never issued any such order and never gave interviews about the minimum price control for budget or low-cost airlines.

But he admitted of saying he did not want these airlines to offer cut-throat air fares as it could affect competition in the public transport services.

Earlier bus operators met the minister after they were asked to lower their bus fares after retail oil price was lowered several times but they still did not lower bus fares on inter provincial destinations. Instead they claimed of high operation cost when low cost airlines offered cut throat air fares on provincial destinations, attracting potential customers to shift to plane from bus services.

ACM Prajin said his interview was misinterpreted and was against what he intended to communicate.

He said the Civil Aviation Commission has capped the ceiling of air fares but has no control on minimum rates, therefore he has no authority to issue any orders to increase the fares.

But he said he would like to see low-cost airlines to adjust fares in accordance with true operation cost.

He said cut-throat air fare was just market campaign and to stimulate sales but with limited seats.

He said he used to make reservations for such promotion but never achieve in getting a seat.

He added he would like low-cost airlines to show more responsibility in services with sincerity and justices to customers.

Source: http://englishnews.thaipbs.or.th/prajin-denies-ordering-budget-airlines-increase-fares

-- Thai PBS 2015-01-13

The bus companies must include their desired net profit margin in their operating costs. One thing the minister could do is offer a class in basic business accounting.