Fuel price hike affects Thai aviation

The stupendous hike in fuel prices, has adversely affected Thailand’s tourism. The country which was known for its low cost airline operations has been facing deep trouble due to the weakening demand forces that have led to the recent grounding of the domestic low cost operator airline “One Two Go”

Since their launch in 2003, all the three budget airlines of Thailand, namely Thai Air Asia, Nok Air and One Two Go, had been seeing great heights due to a gradual increase in the no. of passengers from a mere 4 million to a whooping 12 million! But succumbing to the present financial woes, they have decided to reduce operations. One Two Go airlines has already parked some of its boeing MD series aircrafts to survive in the present economic crisis.

Even Nok Air has suspended its only international flight from Bangkok to Hanoi in Vietnam following a major reduction in the frequency of domestic services. The carrier which has nine 737-400’s and one ATR 72, has recently wet leased a 737 to Mynmar Airways for its operation from Yangon to Bangkok and Kuala Lumpur.

Apparently, the fuel hikes are not really affecting giant airlines of Thailand, such as Thai Airways and Bangkok Airways as most of their income lies with international traffic. But if such “loose” situations prevail for long, even the best airlines will have to look in for cost cutting measures.