New airlines run into cash turbulence

Experts urge a tightening of regulations to prevent a repeat of the PC Air incident in Inchon.

Published: 20 Nov 2012 at 00.00
Newspaper section: Business

Several startup airlines in Thailand do not seem to have sufficient capital to sustain good day-to-day operations, keep their aircraft in tip-top shape or train their crews properly.

Cash-strapped new airlines may cut corners with aircraft maintenance.

These carriers' available funds fall short of the minimum requirement adopted by prudent global operators, making them vulnerable to defaults, aborting flights and stranding passengers at airports as in the case of troubled PC Air.

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DONHUAN
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Discussion 1 : 20 Nov 2012 at 13.311
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It would be better if these relatively ‘small budget” airlines can combine their resources to take advantage of the economies of scales and other related benefits in order to compete effectively with the more established budget airlines like Air Asia, Jet-Star and Tiger Air. In this very competitive and crowded aviation business environment, it would only be a matter of time before these “small flies” are eliminated from the competition. A single arrow is easily broken, but not ten in a bundle. – Chinese Proverb
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New airlines run into cash turbulence | Bangkok Post: business