THAI prepares fare hikes

Apinan noted that the current procedure could not cope with the speed of oil price increases. Though the airline has charged fuel surcharges, but it has covered only half of the increasing cost.

THAI set aside Bt70 billion for the jet fuel cost for the 2006-2007 fiscal year, but in this current fiscal year the budget is increased. Before, the fuel cost accounted for 15-18 per cent of operating cost, but now it climbs to 30 per cent.

Apinan noted that in 2008, THAI could raise the ticket prices on those who take incoming flights for connecting flights to provinces. This would not affect local consumers, he said.

It also considers reducing the number of flights during February and May, the low season for Thailand's tourism industry, and increasing flights to China and India.

- The Nation