THAI seeks PM's help over EU antitrust charge

Abhisit is scheduled to visit Europe in the next two weeks.

Narongsak Sangapong, acting president of THAI, hopes the regulator will drop the charges. He said THAI had never intended to lobby other airlines into colluding in the setting of air freight rates, fuel surcharges, security, war risk and other charges on air cargo services.

The regulator filed a complaint against THAI and 24 other airlines - including Lufthansa, Air France-KLM, British Airways, Japan Airlines, SAS and Cargolux - alleging that they had acted as a cartel.

If the airlines are found guilty of the charges, they will face a penalty of up to 10 per cent of their annual sales.

THAI last year reserved a contingent liability of Bt4.29 billion for damages arising from potential violation of competition law. Its 2008 revenue was Bt200 billion.

Some airlines have chosen to cooperate with the EU through participation in a "corporate compassion" programme in order to avoid criminal conviction. However, others - including the national carrier - are fighting the charges.

"The company wants to finalise the issue before the EU decision comes out in July," said Narongsak.

Meanwhile, he said THAI was preparing to join the EU's Carbon Emission Project, which is set for implementation in 2012. It is in talks with the Aeropolitical Affairs Department of the German federal transport ministry about joining the programme.

The International Air Transport Association plans a 50-per-cent reduction in aviation's carbon footprint by 2050. The association will work with the International Civil Aviation Organisation to ensure compliance.