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report from travel weekly
Wednesday 23 March 2005
Phuket Air ditches UK as fares tumble
PHUKET Air is to withdraw from the UK despite protests by some operators its decision is "short sighted".
The Thai airline – which began flying thrice-weekly from Gatwick to Bangkok last June – will stop outbound UK services on April 23 due to unsustainable losses since the Boxing Day tsunami.
Sales and marketing manager Gordon Macfarland said the disaster started a downwards price spiral in the UK which was unacceptable in the eyes of Phuket Air’s private owners.
Phuket Air’s average return fare was £380 last year, tumbling to £315 this year. Loads from Gatwick were "about 70%" pre-December 26. They have now dropped to 55%-60%.
"To go any lower is commercial suicide," Macfarland said.
Phuket Air is working with operators and other carriers to rebook affected passengers on alternative services. Refunds are offered, and the carrier may return to the UK in winter if business returns.
However, Somak Holidays criticised the carrier’s decision, claiming bookings were already heading back to pre-tsunami levels. General manager Far East Rob Haynes said: "It is a very short-sighted decision."
Operators Thomas Cook Signature and Kuoni were "disappointed" by the decision.
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