Prasert defends Siem Reap fares
BOONSONG KOSITCHOTETHANA
Bangkok Post
Bangkok Airways yesterday defended its fares to Siem Reap and claimed it played a major role in putting Angkor Wat on the world tourism map. Prasert Prasarttong-Osoth, the airline's founder and chief executive, said the exclusive right granted to the carrier to operate the route was a legal deal struck with the Cambodian government at a time when Siem Reap was not well known among international tourists.
At the time, operating the service entailed significant business risk, he added.
The Cambodia Hotel Association (CHA) complained this week that the Thai airline charged too much for the route, and questioned the 1997 decision by the Phnom Penh government to give Bangkok Airways a monopoly until 2009.
The CHA, representing 119 hotels in Phnom Penh, Siem Reap and Sihanoukville, said the high cost of flying to Siem Reap was pushing down visitor numbers to the town located near Angkor Wat.
Dr Prasert countered that his company had made a heavy investment in the route.
''We lost money in the first three or four years and in the first few years of our operation we even spent about 40 million baht a year to help promote Siem Reap as a major tourist destination,'' he told the Bangkok Post yesterday.
He also said the airline could not charge whatever it wanted as it had to weigh supply and demand like any business.
Bangkok Airways charges 9,920 baht for a return ticket, excluding fuel surcharges and taxes, on the Bangkok-Siem Reap route. For the Bangkok-Phnom Penh route, which the CHA highlighted, the company charges 8,000 baht.
Dr Prasert said the airline had hardly heard any complaints about high fares from its passengers, who are mostly international tourists. ''So the noise was made by those who simply want to pay less without due regard to the costs incurred,'' he said.
However, the airline does plan to offer reduced return tickets in February on specific flights to Siem Reap, such as in the afternoon, for as little as 6,000 baht.
''Airlines are not a lucrative business and most of us get only a 2.5% return on investment,'' he said, adding that there were additional costs such as overtime charges at Siem Reap airport.
Operating six flights a day on the route with a combination of aircraft, Bangkok Airways now carries 500-600 tourists a day to Siem Reap.
In the first nine months of this year, it carried nearly 90,000 passengers to Siem Reap, and about 120,000 last year. Cambodia had a total of 813,392 international visitors in the first six months of 2006, a 19.2% rise from the same period last year.
At the time, operating the service entailed significant business risk, he added.
The Cambodia Hotel Association (CHA) complained this week that the Thai airline charged too much for the route, and questioned the 1997 decision by the Phnom Penh government to give Bangkok Airways a monopoly until 2009.
The CHA, representing 119 hotels in Phnom Penh, Siem Reap and Sihanoukville, said the high cost of flying to Siem Reap was pushing down visitor numbers to the town located near Angkor Wat.
Dr Prasert countered that his company had made a heavy investment in the route.
''We lost money in the first three or four years and in the first few years of our operation we even spent about 40 million baht a year to help promote Siem Reap as a major tourist destination,'' he told the Bangkok Post yesterday.
He also said the airline could not charge whatever it wanted as it had to weigh supply and demand like any business.
Bangkok Airways charges 9,920 baht for a return ticket, excluding fuel surcharges and taxes, on the Bangkok-Siem Reap route. For the Bangkok-Phnom Penh route, which the CHA highlighted, the company charges 8,000 baht.
Dr Prasert said the airline had hardly heard any complaints about high fares from its passengers, who are mostly international tourists. ''So the noise was made by those who simply want to pay less without due regard to the costs incurred,'' he said.
However, the airline does plan to offer reduced return tickets in February on specific flights to Siem Reap, such as in the afternoon, for as little as 6,000 baht.
''Airlines are not a lucrative business and most of us get only a 2.5% return on investment,'' he said, adding that there were additional costs such as overtime charges at Siem Reap airport.
Operating six flights a day on the route with a combination of aircraft, Bangkok Airways now carries 500-600 tourists a day to Siem Reap.
In the first nine months of this year, it carried nearly 90,000 passengers to Siem Reap, and about 120,000 last year. Cambodia had a total of 813,392 international visitors in the first six months of 2006, a 19.2% rise from the same period last year.
3 comments:
That dealt may with a payment on each seat to Hun Sen. Indeed any monopolie business is illegal and unfair to consummers. Consummer can take legal fight through WTObecause ir rip off consummers for not having a competitor.
Thank you AH Prasert, you bring Angkor wat to the world?????? whether Angkor Wat deal with you, your fucking airline already collape 10 years ago......fucker
If a monopoly lost money, it would ge time to have the managers head examined.
SiS
Post a Comment