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Tue, November 7, 2006 : Last updated 22:16 pm (Thai local time)



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Home > Business > Bt5-bn airport lawsuit hints at collusion





Bt5-bn airport lawsuit hints at collusion

JP-One Asset (JP-One), operator of an aviation-fuel pipeline to Suvarnabhumi Airport, has filed a lawsuit claiming Bt5.1 billion in damages against competing fuel transporter Thai Petroleum (Thappline) and its directors, most of whom are representatives of PTT and other oil companies, for violating the Trade Competition Act.

JP-One managing director MR Supadis Diskul said the lawsuit challenged the fees Thappline charged for transporting jet fuel to Suvarnabhumi Airport, which JP-One alleges are below cost.

As such fees would worsen Thappline's existing losses and debts, JP-One claims it proves Thappline's intention is to use predatory pricing to eliminate competition by forcing JP-One to suffer unsustainable financial difficulties that would put it out of business.

Thappline's pricing strategy is set by its board of directors. The oil companies they work for would directly benefit from such low pricing.

"Our market share for fuel delivery decreased from 30 per cent at Don Muang Airport to 10 per cent at Suvarnabhumi Airport," said Supadis.

He added that not only would Thappline's price structure violate the Trade Competition Act, it would also lessen Thappline's income, resulting in the government getting less tax revenues from it.

Also, if JP-One were forced out of business, there would be only one operator of a jet-fuel pipeline to Suvarnabhumi Airport, a situation that does not conform with International Air Travel Association standards that require international airports to maintain dual fuel-supply systems for stability and security reasons.








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