Thai Airways chairman upset over delay in set-up of budget airline

BANGKOK, Jan 14 – Thai Airways International Chairman Ampon Kittiampon on Thursday voiced complaints over a delay in the planned set-up of the national-flag carrier’s low-cost airline, saying the company did not understand why the plan remains bogged down in the legal approval process.

He said THAI managed to turn its loss of more than Bt20 billion into a profit due to an improvement in fuel cost management, efficient currency exchange management, and air route adjustments.

To ensure its competitiveness with other airlines in a sustainable manner, the company proposed the establishment of its subsidiary to provide a budget airline service, but the plan has not progressed in the past three or four months.

Mr Ampon affirmed THAI had complied with legal procedures completely. Its management had clarified the planned establishment with the Finance Ministry for several months, but legal differences were still raised.

The THAI chairman said he did not understand why the plan remained stuck in the legal approval process.

“When I worked as the secretary-general of the National Economic and Social Development Board, I had an opportunity to oversee the establishment of a subsidiary of MCOT Pcl, which took only 45 days to complete. The planned set-up of the subsidiary of THAI proceeded in a similar nature. So, I don’t understand why it has not gone smoothly like MCOT.

“Should THAI lose a chance to earn revenue from the establishment of the low-cost airline, someone must take responsibility. The public should have a final say on the matter,” he said. (MCOT online news)