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Published on September 20, 2007

Chief executive officer Khajit Hapnanont said: "Although the insurer initially agreed to pay $130,000 for each victim, we're not quite satisfied with the figure. We are negotiating to raise the compensation as high as possible.

"The insurers are sympathetic and on the discussion table are statistics from previous accidents like the one in Surat Thani. Then, each victim received $100,000 and the rate should be higher now."

A Thai Airways Interna-tional flight crash-landed in Surat Thani nine years ago, killing a number of passengers.

One-Two-Go chairman Udom Tantiprasongchai insisted that all victims would be covered. While injured passengers' medical bills would be taken care of, the company would also consider additional compensation on a case-by-case basis.

"Every-body is concerned what One-Two-Go will do to restore confidence, but my priority now is to take care of the victims. If I have to sell everything to pay for this, I will," Udom said.

The initial compensation figures were released yesterday after a meeting between Khajit, Transport Minister Theera Haocharoen, Deputy Transport Minister Sansern Wongcha-um, Transport Ministry permanent secretary Chaisawat Kitti-pornpaibul and Civil Aviation Department director-general Chaisak Angsuwan.

Theera said at a press conference that the compensation figure was a result of One-Two-Go's negotiations with the insurer. He noted that for injured passengers, the airline would initially handle compensation for all medical bills as well as expenses that their relatives shouldered while travelling to Phuket.

Dow Jones Newswires reported from Frankfurt that reinsurance company Munich Re AG said the plane crash would result in a damage claim for the reinsurer, but that it was too early to give a precise estimate.

"In general, our exposure to such claims amounts to several millions of euros," a Munich Re spokesman said, adding that Munich Re expects the claim "to be fully within our budget for such damage claims".

Estimates for potential damage claims of reinsurer Hannover Re and primary insurer Allianz SE related to the plane crash were not yet available.

Khajit insisted that the condition of the airline's fleet and pilots was 100 per cent ready. He noted that although the crashed aircraft had been in service for more than 20 years, it had been regularly maintained. Pilots also received ample rest between flights, as required.

At present, One-Two-Go operates seven aircraft.

Watcharapong Thongrung

 The Nation