Tassapon said higher operating costs had also contributed to the decision to abandon the route, which was no longer profitable.

This will be the company's second route withdrawal. Two years ago it stopped flying between Bangkok and Nakhon Ratchasima for the same reasons.

Thai AirAsia introduced the daily service between Bangkok and Kota Kinabalu, on the north coast of Borneo, in October 2005. The service replaced a Bangkok-Kota Kinabalu flight with a 30-minute stopover in Johor Bahru.

The flight was offered at Bt999 round trip, excluding airport tax and various fees.

"Kota Kinabalu seemed to appeal primarily to travellers who love adventure activities. The destination has now became the poorest performing in our operation, so we will take it off," said Tassapon.

However, the airline plans to operate international flights from Bangkok to Vientiane and Luang Prabang in Laos, Guangzhou, Kunming and Shenzhen in China, Mandalay and Pagan in Burma and a still-to-be-determined destination in Sri Lanka. These new routes are expected to be up and running by the end of 2007.

Last Wednesday it launched a daily flight between Bangkok and Rangoon, becoming the first low-cost operator to fly between the two capital cities. The flights will serve both tourists and business flyers.

Three majors airlines - Thai Airways International, Myanmar Airways and Bangkok Airways - operate on the Bangkok-Rangoon route. In the near future, a private Burmese carrier, Air Pagan, will spread its wings into Thailand. But Tassapon said the company could compete as it offers lower prices.

Next month, the airline will launch a "Buy One Get One Free" campaign to all its destinations. The move aims to draw in more travellers from outlying regions.

"AirAsia has succeed with this promotion in Malaysia," Tassapon said. "Now we are ready to apply it in the Thai market for both domestic and international routes."

He said the airline expected to run at an 80-per-cent load factor this year.

The company is getting an additional two aircraft this year, bringing the fleet up to 12. A further two aircraft will be added next year.

Suchat Sritama

The Nation