itishothere, on 2012-05-04 13:25:43, said:
smokie36, on 2012-05-04 11:14:55, said:
Economics?? You meant profits right?
I guess both. Air Asia from BKK to CNX is THB 1750, Thai 2425 and Bangkok Airways 2450. On this basis, I fail to see how PG can suddenly get their price down to 1000 on the USM route. Maybe around 2000 is the breakeven level (bearing in mind all the addtional services like lounge etc). 2500 - 3000 is the price it used to be only a couple of years back which included profit. The only reason we are up to the 5000 level today is because BKK-USM is subsidising the rest of their routes where it has to be competitive and at this price, it enables PG to remain profitable which is no mean achievement for any airline today.
well i am sure the rest of the samui business is thrilled to be subsidising bkk air profit margin.





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