Carrier gears for survival

"The airline plans to cut 20 per cent of its total operating costs this year," said president Puttipong Prasarttong-osoth, son of the company's founder.

Among the cost-cutting measures, the company is offering leave with pay to volunteer staff members while maintaining a freeze on recruitment. So far, it has not laid off any staff like some other airlines have done.

It has cut executive benefits and expenses, such as mobile-phone costs and "unnecessary" personal spending.

The airline has also decided to postpone for as long as two years delivery of a new Airbus A319 originally scheduled to reach Thailand this year and cancelled an order for a smaller twin-turboprop ATR aircraft for which it has paid Bt4 million in compensation to an aircraft sales agency.

Bangkok Airways has also cut some international flights to Fukuoka in Japan, Macau and Shenzhen in China, because of falling passenger numbers.

It has also put on hold some new investment projects, including construction of a Bt100-million hotel at Koh Samui Airport, the opening of an aviation training school in Sukhothai province and a rehabilitation centre in Khao Yai National Park.

Schemes

The airline's total number of passengers this year is expected to fall 10 per cent from last year, while revenue growth is expected to be flat, or about Bt8 billion.

Puttipong said Bangkok Airways had launched many schemes to increase its reve-nue. These include operating charter flights on behalf of another private airline - PB Air - from Bangkok to Sakon Nakhon, Nakhon Phanom, Lampang and Buri Ram.

The airline has also signed code-sharing agreements with Etihad and Air France to cater for new customers from European countries and is planning similar agreements with KLM Royal Dutch Airlines and LTU Air Berlin this year.

Bangkok Airways is also increasing its flights between Bangkok and Phnom Penh from two flights a day to three, from Bangkok to Phuket from two flights a day to four and between Bangkok and Chiang Mai from one flight a day to three.

"By the end of the year, we'll open a simulator training

centre for ATR aircraft at Suvarnabhumi Airport that will serve both Bangkok Airways staff and other airlines," Puttipong said.

He said the economic slump was expected to continue affecting the global aviation industry but that the company hoped aviation prospects in Thailand and the rest of Southeast Asia would soon be brighter.

"Like all other players, the airline is introducing many marketing and promotional campaigns, both in Thailand and abroad, particularly in Japan and Europe, to encourage travel. Tourists will gain the best prices if they book now," he said.

Meanwhile, Bangkok Airways has broken another record by winning the Best Regional Airline title in the World Airline Awards for the sixth consecutive year.

The airline's sixth award was announced by global aviation-analysis firm Skytrax.