Transport Company loosing heavily

BANGKOK, May 28 (TNA) -- State-run Transport Company Limited has projected it would suffer losses amounting about 100 million baht by the end of 2016 as it is facing fierce competition from low-cost airlines operating in Thailand, said Nopparat Karunyavanich, vice president of Transport Company Limited. So far the company has already lost about 30 million baht because of the fierce competition from budget airlines while its bus fares do not reflect the actual costs of fuel, Mr Nopparat said. Currently, the Transport Company Limited which provided inte-rprovincial bus services, charges bus fare to provinces at 20 baht per litre while the oil price has increased to 24 baht a litre, he said, adding that the company has not adjusted its bus fares. Transport Company Limited has offered several promotions since the beginning of this year to compete with low-cost airlines, he said. But the offer did not produce fruitful results and the company had to cut its operations as well as reducing rental buses to 571 from 600. Some private-run buses that joined Transport Company Limited in providing services have already stopped businesses due to the heavy loss, he said. Plans are being made by Transport Company Limited to buy 382 new buses to replace double –decker buses which have been stopped using for safety of the passengers, he said. Terms of references are being prepared and are expected to be announced next month. (TNA)