Nok Air expects passengers to be 1 million short of target

The airline now believes it will have a maximum of 2 million passengers throughout 2008, lower than the original target of more than 3 million.

"Total passengers in 2008 are expected to be lower than last year's number," said chief executive officer Patee Sarasin.

The subsidiary of Thai Airways International also expects to miss revenue targets, but declined to mention the figure.

Patee said the fluctuation of oil prices was the key factor in the struggle. He added that the airline had already cut 200 outsource staff and also reduced salaries at management level by between 15 and 25 per cent.

The airline has already lost many millions of baht.

"The company hopes to cope with the loss over the next few months," said Patee.

He added it would increase ticket prices in the last quarter this year.

The company recently cut three domestic routes, from Bangkok to Krabi, Chiang Rai and Ubon Ratchathani. Nok Air also cancelled all flights between Bangkok and Bangalore last November and Bangkok and Hanoi in May.

The airline began its first daily international service to Bangalore on May 31, 2007. The airline also has landing rights for additional Indian cities, Chennai, Hyderabad and New Delhi.

It suspended operations to Bangalore last November due to non-availability of aircraft and to allow services to more lucrative routes in Southeast Asia.

However, it is still operating Bangkok-Udon Thani, Bangkok-Trang, Bangkok-Nakhon Si Thammarat and Bangkok-Chiang Mai services but with fewer flights.

Patee confirmed that the airline would not stop operations, as media speculation has predicted. Meanwhile, the airline is still working with its parent company Thai Airways on services as well as marketing.

Established in December 2003 and starting operations on July 23, 2004, the airline's major shareholder is Thai Airways with 39 per cent.

Some local newspapers reported that Orient Thai and One-Two-Go are preparing to cut employee numbers by 200 to save operating costs. One-Two-Go decided to ground its operation last month due to many hostile factors.

On the other hand, Thai AirAsia is getting more passengers this year. However, it is concerned over returns because of the higher costs of operation.