Bangkok Air hike their monopoly Samui fares 20%

[Guest wowpow]

Samui operators protest rise in airfares

 

SURAT THANI, Nov 4 (TNA) - Claiming over US$5 million in losses in just one month, tour operators in Thailand's popular southern resort of Koh Samui (Samui Island) are urging Transport Minister Admiral Thira Haocharoen to find ways to reduce airfares raised by Bangkok Airways recently.

 

Threatening that Koh Samui residents and tour businesses will take drastic action--closing the island's airport--if their request is ignored, Seni Puvasettavorn, president of the Koh Samui Tourism Promotion Association, said tour operators and islanders have been hit hard by Bangkok Airways recent increase of its airfare by 20 per cent.

 

The October 29 action caused the price for return tickets for economy class flights from Bangkok to the island to rise to Bt10,170 (about US$277), and Mr. Seni says the island have lost over US$5 million in just one month.

 

Because of the sharp increase in air ticket costs, tourists have switched to other tourism destinations, Mr. Seni said.

 

Since the Bangkok Airways tariff increase, tourism in Koh Samui and the islands of Koh Pa-ngan and Koh Tao has already suffered losses of more than Bt200 million (US$5.5 million), he charged.

 

Bangkok Post

[Guest Snowkat]

Slightly off the direct topic, but does anyway know if Bangkok Air has similarly increased their return fares BKK/Phuket and more importantly U-Tapao/Phuket. What is the current return fare U-Tapao/Phuket booked through a travel agent? I know I can get a quote on-line from their web site but that is usually more than booking via an agent when in the country. Next trip planned for the early New Year.

[Guest wowpow]

Bangkok Air have a monopoly on flights to Koh Samui as they built and paid for the airport. The also own Sukhothai. The are a "Boutique" airline and so not the cheapest.

 

I would doubt that they will go mad on price rises on the Bangkok Phuket route as there is a lot of competition. The U-tapao Phuket route was never busy and will probably suffer now that Suvarnabhumi is open.

 

They do fly to Siam Reap for Ankor Wat and there is not much competition there so prices may escalate.

 

Though they are a bit pricey I have never heard anyone complain about their service.

 

http://www.bangkokair.com/

[Guest Snowkat]

I would doubt that they will go mad on price rises on the Bangkok Phuket route as there is a lot of competition. The U-tapao Phuket route was never busy and will probably suffer now that Suvarnabhumi is open.

 

Though they are a bit pricey I have never heard anyone complain about their service.

 

The regular service U-Tapao/Phuket always seemed to be busy to me - every time I have flown it has been full or near full. A great joy is that the flight usually left on time.

 

Doubt that Suvarnabhumi will make much difference - the big attraction of U-Tapao is that there is no hassle/crowds and the service is very personal and friendly. Suvarnabhumi is far too large and impersonal and besides it is still nearly two hours to drive there from Pattaya as opposed to 35 minutes to U-Tapao.

 

Price rises were rumoured last time I flew with them - still interested to know what they are now, if anyone knows.

 

[Guest wowpow]

OH SAMUI THAI'S PLAN TO FLY TO ISLAND

Bangkok Post

Bangkok Airways ready to loosen monopoly BOONSONG KOSITCHOTETHANA

 

Bangkok Airways (PG) is prepared to loosen its long-standing monopoly on domestic air services to Koh Samui by supporting Thai Airways' plan to fly there. The privately-owned airline has also agreed to establish a joint flight operation agreement, in the form of code-sharing, under which THAI passengers can travel to and from Samui on PG aircraft.

Prasert Prasarttong-Osoth, PG founder and chief executive, told the Bangkok Post that the airline welcomed THAI's entry to Samui airport, which it owns and operates, to put an end to criticism of its control of the lucrative Bangkok-Samui route.

The criticism has heightened as Samui's tourism operators have protested PG's move to increase the maximum round-trip Bangkok-Samui fare, excluding all other extra costs such as insurance, fuel prices and airport passenger charges, by 10.28%, to 8,900 baht, for fear it will affect the island's tourism business.

THAI intends to initially operate two flights a day, using Boeing 737 jets, and hopes to start code-sharing with PG on the route next month.

But the launch date of THAI's first service to Samui is still pending a positive outcome from the ongoing public hearing involving some 190 affected families as well as approval from environmental and civil aviation authorities who have frowned on plans to make the skies over the island any busier than they are now.

Authorities have limited the maximum number of flights to and from Samui to 34 a days (18 by jets and 16 propeller-driven) and restricted the landing and take-off period to 6am-10pm to limit environmental damage and noise pollution.

Samui airport is the only civil airport in the kingdom that has such flight restrictions.

Dr Prasert defended PG's decision to raise its fares starting Oct 31, saying they were in response to higher operating costs, including those involving shifting operations to Suvarnabhumi from Don Muang.

He stressed that the increase, which is only applied to one type of ticket, the most expensive category in the multiple-tier fare structure known as the ''Y'' fare, bought on the day of travel _ or ''walk-in'' price without a prior reservation.

Applicable during the current high season, the fare increase for such round-trip fares, from 8,070 baht previously to 8,900 baht, was highly unlikely to scare off tourists as Samui tourism organisations seemed to believe, he said.

Inclusive of other costs where the amount remains constant, the ''Y'' ticket price could go up to 10,170 baht.

The price of the other type of round-trip ticket, the so-called ''M'' fare, where prior reservations are made, has increased by only 200 baht to 6,900 baht.

''Samui's tourism industry may be overly concerned about the impact of the hike, which is minimal,'' Dr Prasert said, adding it was the first since July 2001.

 

 

 

[Guest fountainhall]

My experience of 'code sharing' agreements between airlines when there are only two sharing a route is that prices rarely go down. It is just not real competition.