One-Two-Go forced to suspend operations

BANGKOK (Nation): Low-cost carrier One-Two-Go will suspend its operations from Tuesday until September 15, making it the first airline victim of record oil prices.

Founder and CEO Udom Tatiprosongchai said the unrelenting rise in oil prices had forced the airline to shut down temporarily.

“The company has been losing money for months, and we cannot continue like this,” said K. Udom, adding that One-Two-Go would resume operations when the situation improved.

Two of its rivals, Thai AirAsia and Nok Air, are still in service but facing the same cost pressure.

Both have revised their business strategies and rescheduled some routes.

K. Udom said One Two Go had been operating based on actual costs while other players had different strategies. In a statement, One Two Go said high oil prices were hurting the global airline industry.

Airlines worldwide have cut 30% of their flights and raised surcharges to stay in business, the statement said.

One Two Go was the country’s first low-cost airline, starting its service in December 2003 with a Bangkok-Chiang Mai flight.

Accusations remain that cost-cutting measures played a part in the crash of One-Two-GO Airlines Flight OG269 at Phuket International Airport on September 16 last year, killing 90 passengers. Rumors abound that it could face regulatory problems due to its safety record.

Relatives of the victims in the crash have started an online petition at www.investigateudom.com to campaign for an investigation into K. Udom’s business conduct.

It was alleged that Udom had misled pilots into flying unsafe planes and paid bonuses for those who worked beyond the legal maximum of flying hours.

Chaisak Angkasuwan, director-general of the Civil Aviation Department, could not be reached for comment yesterday.