Bangkok Airways shrugs off alliance deal

       Bangkok Airways has given the cold shoulder to an overture from Orient Thai Airlines and its budget carrier One-TwoGo to form an alliance to stay afloat.
       Bangkok Airways president Puttipong Prasarttong-Osoth said there were a lot of discrepancies between the two groups which make integration impossible.
       "Their business models, operating concepts, aircraft types and routes are totally different from ours," he told the Bangkok Post ."I don't think we will benefit from forming an alliance."
       He ruled out an idea of a merger,noting that the only possible form of cooperation for Bangkok Airways was some sort of limited joint marketing.
       The struggling Orient Thai and OneTwo-Go have sought wide-ranging cooperation with the regional airline such as joint flight operations and marketing.
       The group had wanted to take advantage of Bangkok Airways' financial strength, younger fleet and network to enable its two airlines to weather the aviation industry's severe downturn and
       fierce competition.
       But the two firms differ in various aspects. Bangkok Airways is a 40-year-old regional airline that brands itself as "Asia's boutique airline" catering mostly to interPuttipong: Too many national tourists,differences passengers looking for full services and young aircraft, on routes in this region.
       Orient Thai and One-Two-Go serve budget-conscious travellers who do not mind flying on old jets, mostly over 20 years in age, with sparse inflight offerings.
       Their management styles also differ.Bangkok Airways is controlled by the Prasarttong-Osoth family assisted by a group of local and international professionals.
       Orient Thai and One-Two-Go are basically run by their founder Udom Tantiprasongchai.
       Orient Thai operates only one route - Bangkok-Hong Kong - on a scheduled daily basis - and charter services.
       Its budget affiliate, One-Two-Go, is still reeling from its poor image since one of its MD-82 jetliners crashed on Sept 16,2007 at Phuket airport, leaving 89 dead and 41 injured.
       It was blacklisted by the European Union following the crash for poor safety records. But in July this year, the airline was removed from the blacklist.
       One-Two-Go has recently undergone a downsizing, laying off 400 staff and asked the remaining 600 staff to take leave without pay or cut their working days. Most of the employees have reportedly seen a 25% pay cut.
       The airline has also halved daily flights to 14, suspending services from Don Mueang airport in Bangkok to Nakhon Si Thammarat and Surat Thani, and grounding aircraft.