Bangkok Airways slashes flights

The high cost of jet fuel and weakened demand for air travel, as well as uncertainly in the Thai business climate, are causing Bangkok Airways to cut capacity, despite its otherwise strong financial base.

The privately-owned Thai airline will suspend service on three of its international routes and reduce the frequency of its services on another route, as part of its plan for financial survival.

Services to be discontinued include four weekly flights between Bangkok and Fukuoka, Japan, which will end on 1 October, the three weekly Bangkok to Shenzhen flights, from 15 August, and the three weekly flights from Siem Reap to Hong Kong operated by sister carrier, Reap Airways International, also from 15 August.

From the first of October, the frequency on the Bangkok to Hiroshima route will be reduced to twice-weekly, according to an announcement sent to travel agencies yesterday.

Bangkok Airways officials were not available for comment, but an industry source close to the airline said that the discontinued services were ones that are not profitable due to low traffic volume.

Oil prices, which have reached US$150 a barrel on the Singapore market, were a deciding factor in the airline cutting these international services, according to an industry analyst.

”Clearly, the airline does not want to bleed to death,” noted the source, adding that the airline would be better off cutting capacity on unprofitable routes.

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