The airline's "multiclass fare system" will be introduced for domestic routes after being used successfully for international destinations.

There will be price ranges for all seating, too.

"We have already lost many domestic passengers to low-cost airlines offering much cheaper fares. So we are moving to bring those customers back," the airline's Thailand, Indochina and Burma area director Pichai Chunganuwad said.

He believed a multi-scaled pricing system would win back lost market share.

The system has worked well on international routes for "years", he added.

Each seating class will now have several price options, ranging from seven in economy to three in business.

Lower fares will be offered for weekdays, for very early or very late flights and on less popular routes such as Ubon Ratchathani, Udon Thani, Khon Kaen and Phitsanulok. Lower fares will be available on popular routes if travellers book in advance, he said.

The cheapest fares will be 40 per cent below current rates and approach those offered by the cut-price carriers, Pichai added,For example, the last flight of the day from Bangkok to Ubon Ratchathani costs Bt2,300 one way but with scaled fares will fall to Bt1,400, not including fuel surcharges, taxes and insurance, if booked in advance.

Pichai warned travellers conditions would apply.

Pichai said total domestic revenues would increase an expected 10 per cent this year, while domestic passenger numbers would grow 12 per cent compared with last year's 5.4 million.

The airline posted an overall net-profit increase in the October-to-December first quarter of this financial year of 5.7 per cent.

Pichai added that the airline had increased ticket prices for three network loops since December 2006. Bangkok to Chiang Mai and Phuket flights cost Bt200 more while Bangkok to Hat Yai, Krabi, Khon Kaen and Ubon Ratchathani increased Bt500 a ticket.

Chiang Mai to Mae Hong Son incurs a Bt400 surcharge, and Chiang Mai-Phuket flights are adjusted Bt700.

Thai Airways will move some domestic flights from Suvarnabhumi Airport to Don Muang from March 25.

Don Muang will handle second-tier routes such as Udon Thani, Khon Kaen, Phitsanulok and Ubon Ratchathani.

Flights to Chiang Mai, Krabi, Chiang Rai, Phuket and Hat Yai will use both airports for transit-passenger convenience.

Suchat Sritama

The Nation