THAI scraps plan for new low-cost carrier

CHIANG RAI, July 9 (TNA) - The Board of Directors of Thailand's national carrier Thai Airways International (THAI) approved the scrap of a plan to set up another low-cost subsidiary.

Instead of setting up another subsidiary (to have been called Royal Orchid Airlines), THAI will instead plan to compete directly with low-cost carriers, considering that it is already a major shareholder in Nok Air, a domestic low-cost carrier, according to the national carrier's president, Apinan Sumanaseranee.

Speaking to reporters after the Board meeting, Mr. Apinan said another low-cost airline is unnecessary as THAI owns 39 per cent of Nok Air.

In addition, once Suvarnabhumi International Airport opens in September 28, it will become an aviation hub accommodating many charter carriers.

With these considerations, Permanent Secretary for Transport Wanchai Sarathuntat, who chairs the

THAI board, acknowledged and approved the decision.

The plan for THAI to form an added budget subsidiary was initiated by caretaker Transport Minister Pongsak Raktapongpaisal who thought that THAI should optimise business opportunities with the potential of the Suvarnabhumi Airport.

Mr.Wanchai said THAI is now devising new strategies on staying competitive against the low-cost carrier sector by expanding more options via internet booking.

TNA