The carrier said it was seeking more passengers in the tourist- and corporate-travel sectors.

The airline claimed its first-half performance had suffered from the recent political uncertainties.

Rangsiman Mokkhasmit, area director for Thailand, said lower-priced, all-inclusive package tours would help increase second-half sales.

The company said it missed its first-half sales target because of passing on some domestic routes to Nok Air.

The uncertain political landscape also saw a drop-off in business travel.

Annual ticket sales were running at about Bt30 billion.

To improve this, the airline hopes to sign year-by-year contracts with the corporate Thailand.

The deals will see staff at big companies like Thai Beverage Plc, Central Group, Toyota and Honda using THAI exclusively.

It plans to sign as many as 250 corporate-travel contracts this year, providing as much as 5 per cent of total revenues.

"We'll try to boost sales by 7-8 per cent this year, with margins increasing slightly. Although we have higher fuel costs, we can't increase ticket prices, due to tough competition," said Rangsiman.

The company is engaged in joint-promotion campaigns in an effort to boost second-half sales.

The airline and the Agriculture Ministry will host the "International Horticultural Exposition for His Majesty the King: Royal Flora Ratchaphruek 2006" in Chiang Mai from November to next January.

Watcharapong Thongrung

The Nation