Bangkok Air hike Samui fares 20% - locals in revolt

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

I wish the locals on Samui all the luck in the world. Bangkok Air/Siem Reap Airlines have a reputation for good service (although as mentioned in previous posts I have suffered my longest ever air travel delay with them). They do seem to have a few exclusive routes (I wonder how that happened [ka-ching!]) and do take full advantage of this exclusivety by upping the price astronomically. They position themsleves as a 'boutique airline', although throwing in a carton of juice and plasti-wrap container of food hardly justifies the term.

You can end up paying a hell of a lot more for a flight with Bangkor Air when they have exclusivety. Example:

Bangkok to Phnom Penh - 535kms
Air Asia cheapest flight (inc taxes) = 1,249 baht
Bangkok Air cheapest flight (inc taxes) = 2,630 baht

Bangkok to Siem Reap - 361kms (exclusive route for Bangkok Air/Siem Reap Airlines)
Bangkok Air cheapest flight (inc taxes) = 5,305 baht

It costs you double the price to travel on an exlusive route and a shorter distance with Bangkok Air than it does to fly a route with competition.

I hope the locals action means that the Samui route is opened up for the likes of Air Asia and whoever decides the allocation of routes has his/her bank accounts investigated.

"In flight Meals
We offer a varied menu on all flights as well as a selection of alcoholic beverages, soft drinks and juices. Hot or cold meals are served on all flights depending on the time of day and flight duration.
Children meals, Diabetic meals, Hindu meals, Moslem meals, Vegetarian (Lacto Ovo) meals and Vegetarian (Non Dairy) meals are also available, if order is made at least 72 hours in advance." Bangkok Air

I was perusing their website to see if they still have a VIP Lounge at Suvarnabhumi but I did not spot anything. I did see that their Baggage allowances are ungenerous 20l hold and a very mean 5k cabin!.

[Sen Yai]

I hope the locals action means that the Samui route is opened up for the likes of Air Asia and whoever decides the allocation of routes has his/her bank accounts investigated.

Fatman, that is unlikely to happen in the near future. The reason for the exclusivity that Bangkok Airways enjoys on the Bangkok-Samui route is that it owns and operates Samui Airport. I think they are unlikely to grant landing rights to AirAsia - or any other competitor.

There has been some talk of building a new airport on Sumui, to be operated by AAOT, but a second airport on Samui seems a bit OTT.

OH SAMUI THAI'S PLAN TO FLY TO ISLAND

Bangkok Airways ready to loosen monopoly
Bangkok Post
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.