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Unformatted text preview: Introduction Background of the Company: Bangkok Airways was initially founded as ‘Bangkok Aviation Company’ by Dr. Prasert Prasarttong-Osoth, the owner-manager, during Vietnam War in 1967. As a pilot, the founder set up the company with his great passion for airplane and inspiration of having his own business involved in aviation. From the beginning, the airline started up with only a 10- seat aircraft, which had provided charter services to American Military for fifteen months until it retreated, and then turned to register for the general charter services. The Minister of Transport later launched the first flight table for all private companies from 1984 to 1985. Bangkok Airways began its services to Suratthani province; however, not for long, it had to stop its services due to the control of the Department of Aviation Air Transport on giving flying routes only for state airline, Thai Airways. Instead, the company was forced to serve its services to Nakhon Si Thammarat, a neighboring province of Suratthani. The uncertainty of flying routes raised the idea for building its own private airport as the services could be forced to cancel due to the government’s control. The owner of the company started from owning the airport by renting one at Pattaya but only in a short time as Thai Airways also had flights to U-Tapao airport in Pattaya as well, causing Bangkok Airways to stop its operations again. After that the firm turned to purchase land and then built its own airport. This was the turning point at that period because it was the only airline in the world that built its own airport. Its first airport was located in Suratthani on Samui Island. The cost for constructing the airport was entirely financed by the owner-manager. Two years later, the construction was done and ready for operations. So far, Bangkok Airways owns three airports which are Samui International Airport, Sukhothai Airport, and Trat Airport. However, its most revenues are mainly from Samui International Airport as the number of tourists travelling to Samui is large, more than 700,000 persons each year. The overview of the company is considered prosperous after many years of operating. There is high potential of its business to grow further. The airline has been developed overtime from the starting up of only one small aircraft to seventeen now. Moreover, the firm ordered thirty more airplanes in preparation for international long-haul flights to several destinations in Europe. It successfully got a concession for its subsidiaries to run and operate the air cargo and catering services at Suvarnabhumi Airport. The lucrative businesses of Bangkok Airways are from its airline, airports, catering, and cargo and they are all related- link businesses....
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This note was uploaded on 02/13/2012 for the course ECON 101 taught by Professor Teerana during the Spring '11 term at Thammasat University.
- Spring '11