NEWS - THAI forced to cut flight se

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Subject: NEWS - THAI forced to cut flight seats- National carrier told to take it or leave it

BANGKOK POST - November 24, 1999

THAI forced to cut flight seats
National carrier told to take it or leave it

Amornrat Mahitthirook and Nusara Thaitawat

A viation authorities have been forced by Rangoon to cut by 1,000 to
2,500
the number of seats allocated per week to Thai and Burmese national
carriers.

Talks between the two countries, which have been going on since early
this
year, were concluded under a tense atmosphere at a Nov 18-19 meeting in
Rangoon, called by Burmese authorities.

Effective on Dec 1, the cut in the number of available seats on THAI's
Burma
route at such short notice is expected to affect Bangkok's status as a
gateway to the region.

Sawat Sitthiwongse, director-general of the Civil Aviation Department,
said:
"The Burmese negotiators would not listen to any of our proposals. They
maintained their position to cut the seats to 2,500.

"They seem to believe that by reducing the number of available seats on
THAI, passengers will fly Myanmar Air instead," he said.

Sources said the Burmese negotiators were following orders from Lt-Gen
Khin
Nyunt, secretary-1 of the State Peace and Development Council, to demand
the
cut or scrap the aviation agreement altogether.

The agreement stipulates that changes require notification be made one
year
in advance. "The Burmese negotiators made clear it was a 'take it or
leave
it' demand," a source said.

The Burmese were mistaken in thinking THAI's loss would be Myanmar Air's
gain but nothing would induce them to change their position.

Under an agreement reached four years ago, the Thai and Burmese carriers
were each allocated 3,500 seats per week.

Two years ago, the carriers reached a written "provisional
understanding" to
increase the number of seats on THAI by 300 a week but Rangoon now says
such
arrangements can only be made by government agencies.

THAI operates 14 flights per week and Myanmar Air two.

A delegation from THAI is to travel to Rangoon as soon as possible to
negotiate a commercial agreement.

A source said THAI may have to use Boeing 737s instead of larger
Airbuses
and seek to buy a fixed number of seats on Myanmar Air but use planes
from
its own fleet.

Mr Sawat, who led the delegation to the talks in Rangoon, said he
intended
to propose code-sharing and pool agreement.

"It's normal for neighbouring countries, such as Burma, to feel
disadvantaged as passengers chose Thai services," he added.