THAI to stop service on two routes

Yesterday's meeting between the three parties concluded that THAI would stop flying the Bangkok-Phitsanulok and Chiang Mai-Mae Hong Son routes, said Chaisak Angsuwan, deputy permanent secretary of the ministry.

The airline currently operates two flights daily on the Bangkok-Phitsanulok route, a reduction from the previous schedule of five flights. The route has resulted in losses of Bt60 million this year.

The Chiang Mai-Mae Hong Son route has been hit by the unfavourable climate and suffered losses of about Bt6 million so far this year. Mae Hong Son suffers from a continuing drop in tourist numbers - 69,000 so far this year, from 90,000 in the same period last year and 100,000 in 2006.

Chaisak said the meeting had decided that private airlines should be allowed to operate the two routes on a code-sharing basis with THAI. This would see the flag carrier transporting passengers from abroad to Chiang Mai, from where private airlines would fly them on to Mae Hong Son.

Siam STA recently expressed interest in operating the route on a code-sharing basis. The company would deploy a 12-seater aircraft if it wins approval.

Chaisak added that the country had suffered from the sagging global economy and the recent closure of Bangkok's main airports.

He said THAI might also have to adjust some international routes, given reports of declining tourist numbers from China, Taiwan, Japan and South Korea - the main overseas customer bases of the airline.

However, the number of tourists from the Middle East, Scandinavia and Russia has increased.