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NEWS - Junta demands rise in airspa



Subject: NEWS - Junta demands rise in airspace fee

BANGKOK POST - November 18, 1999

Junta demands rise in airspace fee
Aviation dispute set to cloud Surin visit

Nusara Thaitawat and Amornrat Mahitthirook
Rangoon is demanding a bigger slice of the revenue from air travel
between
Thailand and Burma, or a major reduction in the number of seats on
offer, an
informed source said.
Burmese aviation authorities told Thai Airways International to hand
over
12% of the revenue from its profitable Burma route.
If not, the number of seats available each week on the service, flown by
THAI and Myanmar Air, must be reduced by about 1,000 to 2,500, the
source
said.
The ultimatum has been issued as Foreign Minister Surin Pitsuwan
prepares to
leave on a visit to Burma tomorrow.
A delegation from the Civil Aviation Department, headed by its new
director-general, Sawat Sitthiwongse, is due in Rangoon today. Burmese
authorities have rejected a written "provisional understanding" between
THAI
and Myanmar Air made two years ago which raised the number of seats per
week
to 3,800.
They said that was 300 more seats a week than a formal agreement
concluded
about four years ago between the civil aviation authorities of the two
countries. The number of seats was not a matter to be decided between
airlines, they said.
THAI currently operates 14 flights per week on the Burma route, using an
Airbus, and Myanmar Air two, using smaller planes.
THAI earns US$16 million a year from its Burma flights, of which it
claims
only 5% is profit. The route is one of its most lucrative as there is no
competition from other airlines.
Rangoon's demand for 12% of THAI's revenue was in total disregard that
there
are costs involved and only 5%, or $800,000, was net profit, the source
said.
Senior officials involved in the talks are playing down the issue, as
any
comment could further sour the already deteriorated relations between
the
two countries.
An informed source said THAI was expected to table a proposal to help
find
passengers for Myanmar Air, and a more equitable profit sharing formula.
Talks have been ongoing since early this year. One source said Burmese
authorities have made it clear that the issue has to be settled without
further delay.
The delegation, which is due back in Bangkok on Saturday, is composed of
senior officials from THAI, the Civil Aviation Department of the
Transport
Ministry, and the Economic Affairs Department of the Foreign Ministry.
Burma closed its land and maritime borders with Thailand in the
aftermath of
the occupation of its embassy in Bangkok on Oct 1-2 by Burmese dissident
students.
Thailand gave the raiders safe passage to the border after they released
all
hostages. Burma has demanded their apprehension and trial.