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Published on October 2, 2007

CEO Tassapon Bijleveld said the political trouble in Burma had exacerbated the company's problems flowing from last month's crash of a One-Two-Go aeroplane in

Phuket.

He said the crash had damaged the image of low-cost airlines, because it had misled the public into believing that budget carriers had lower safety standards.

The accident would lead to a 5-10-per-

cent cut in bookings for all low-cost carriers, a reaction he hopes will cease within two months.

Tassapon said Thai AirAsia had started reducing flights between Bangkok and Rangoon yesterday and that the cut back to just three flights a week would be fully implemented by the end of the month.

The airline will only resume full operations if the situation in Rangoon "returns to normal".

"Many Western tourists have cancelled trips from Thailand into Burma, while many Thais are seeking to switch to other destinations. Others are waiting to see what happens," Tassapon said.

As with all such special incidents, the airline will return money to those who have made advance bookings and later cancelled. They are allowed to change their destinations without any cost.

In an effort to rebuild consumer confidence, Thai AirAsia plans to begin using three new Airbus A320 aircraft as soon as they are delivered. The first is expected to arrive about the middle of this month, the second next month and the third in December.

The first of the A320s will be flying to Penang, Singapore, Hat Yai, Phuket, Kuala Lumpur and Chiang Mai.

Thai AirAsia has a total of 40 new A320s on order, to be delivered over the next five years. By 2012, the airline's entire fleet will comprise new aircraft, making it the youngest airline fleet in the region, with an average of five years' use.

"We are entering into a new era with a new fleet, and it will help the airline extend its destinations, both within Thailand and abroad," Tassapon said.

The 40 new Airbus A320s will replace the airline's current Boeing 737-300s. On a single journey, an Airbus A320 can fly up to 5,700 kilometres. The aircraft has become popular because of its energy-efficiency and cost-effective design. A320s also have spacious luggage compartments and comfortable and wider seats, and they are claimed to reduce noise.

Thai AirAsia currently flies to 12 domestic and 10 international destinations. By the end of this year, it will add new services to Hong Kong and Guangzhou and another daily flight between Bangkok and Phuket.

Suchat Sritama

The Nation