It is the first time that THAI has reached agreement with a local private operator on commercial cooperations and code sharing.

One of the first outcomes of the agreement will be on domestic routes such as those to Koh Samui, which are currently monopolised by Bangkok Airways. THAI will sell Bangkok Airways onward travel to Samui to its passengers.

For international travel, the agreement will first affect routes between Thailand and China. Bangkok Airways currently flies to Xishuangbanna, Xian, Guilin, Zhengzhou, Hangzhou and Shenzhen, and THAI travels to Beijing, Hong Kong, Guangzhou, Shanghai, Chengdu, Jinghong, Kunming, and Xiamen.

Following the agreement, travel to all destinations will be available from both THAI and Bangkok Airways.

"The agreement will allow THAI to expand its reach in China, using the network of Bangkok Airways, which will better meet passenger needs and make travel more convenient," said Bangkok Airways president Prasert Prasarthong-Osoth.

He said competition in the airline industry had been increasing, so cooperation between the two airlines will help strengthen both, particularly by reducing operating costs.

THAI and Bangkok Airways would implement "interline ticketing" within the next two or three months, Prasert said. This will allow the carriers to issue air tickets each other from sales offices anywhere in the world.

Bangkok Airways has also signed a memorandum of understanding with British Airways and will soon reach agreement on cooperation with Air France and Cathay Pacific, he said.

Suchat Sritama

The Nation