Private Thai carriers Air Andaman and PB Air are working to finalise an agreement with state-owned Thai Airways International to take over some of its domestic routes from October.

Talks have been going on for months, since the national carrier announced a new strategy to drop some loss-making domestic services and focus on six key domestic routes and international destinations. PB Air hopes the government will allow substantial increases in fares to allow it to operate some of the routes economically. President Capt Jothin Pamon-Montri says that PB is discussing a memorandum of understanding with Thai covering routes it will take over, codesharing, use of the Thai's reservations system and making Thai its general sales agent.

He says the plan is largely contingent on PB winning approval to hike fares. From its Bangkok base, PB is seeking to serve Lampang, Nakhon Pathom, Nan, Petchabun and Sakhon Nakhon in the north and north-east, plus Krabi in the south near Phuket.

Air Andaman flies to a handful of destinations in the south of the country using two British Aerospace Jetstream 31s. Agreement to operate a clutch of Thai's domestic routes from October may be delayed by pricing and politics, but the airline believes it will start introducing services later this year.

The carrier plans flights between Mae Hong Song and Chiang Mai, and Bangkok to Mae Hong Song and on to Chiang Rai. It also aims to link Phuket, Bangkok and Chiang Mai to various regional points.

Three leased 40- to 50-seat aircraft are being sought for the expansion, and two 60- to 70-seat aircraft when Mae Hong Song is handed over.

Source: Flight International