Thursday, July 24, 2008

Thai budget carrier halts flights on fuel

One-Two-Go Airline, Thailand's second-biggest budget carrier, will suspend operations for about two months after fuel prices almost doubled in a year and a crash in September killed 90 people.

The carrier will ground its planes from tomorrow until September 15, it said in an e-mailed statement yesterday.

The Orient Thai Airline unit will "reorganize'' its operation and staff before resuming flights, it said. One-Two-Go is at least the fourth airline in the Asia- Pacific region to suspend operations this year amid record jet- fuel prices.

Industry wide losses may total more than US$6.1 billion (HK$47.58 billion) this year, the worst since 2003, according to the International Air Transport Association. At least 25 airlines have already shut down worldwide this year.

BLOOMBERG

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