THAI says low-cost carrier to be managed independently

BANGKOK - President of Thai International Airways, Kanok Abhiradee told reporters yesterday any low cost airline set up by the national carrier would be managed independently under a separate business concept.

The president's comments followed remarks made by Professor Nawal Teneja, author of 'Airline Survival Kit: Breaking out of the Zero Profit Game,' who warned yesterday that low cost carriers would only succeed if they were run independently from their parent companies.

In a talk to airline executives, Teneja said major carriers were "going after the wrong segment", while low cost carriers represented the future of airline travel with an hands-on management concept that focused on the fastest growing segment - economy travel.

Three Thai airlines, including Bangkok Airways have expressed an interest in becoming stakeholders in a "no-frills" airline with THAI, which would initially fly domestic routes.