THAI hikes domestic fares
BANGKOK – Thai Airways International has increased domestic fares from Bt8 to Bt13 per flown kilometre claiming the revision reflected more accurately the cost of travel in the country.
The airline has been increasing international fares over the last three months making it less competitive on trunk routes to Europe and also on some key regional routes.
Fares are now much higher than those quoted by low-cost airlines, part of THAI’s policy to establish itself as a “premier†airline.
THAI president, Piyavasti Amranand said the Civil Aviation Board had earlier increased the ceiling km charge to Bt13, prompting the revision of fares across the domestic network.
“We have been experiencing losses on most domestic routes. Some non-profitable routes have been transferred to Nok Air.â€
The Samui route has the highest fare calculated at the Bt13 ceiling rate, while other routes are below the maximum allowed.
THAI executive vice president, Pruet Boobphakam, told TTR Weekly prior to the increases THAI were charging only Bt5 to Bt7 per kilometre.
“The law sets a ceiling of Bt13 per passenger km flown, but we have raised fares to match reality. We haven’t increased domestic fares for years, while our costs have increased. Salary costs increase 7% every year. That’s why our yield is poor.â€
The airline employs 27,000 staff, the highest workforce of any airline in the Asia Pacific.
Source: TTR Online
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