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Bkk post - Junta demands rise in ai

Subject: Bkk post - Junta demands rise in airspace fee

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Bangkok Post - Nov 18, 1999.
THAI-BURMESE RELATIONS


Junta demands rise in airspace fee
Aviation dispute set to cloud Surin visit


Nusara Thaitawat and Amornrat Mahitthirook=20


Rangoon is demanding a bigger slice of the revenue from air travel =
between Thailand and Burma, or a major reduction in the number of seats =
on offer, an informed source said.

Burmese aviation authorities told Thai Airways International to hand =
over 12% of the revenue from its profitable Burma route.

If not, the number of seats available each week on the service, flown by =
THAI and Myanmar Air, must be reduced by about 1,000 to 2,500, the =
source said.

The ultimatum has been issued as Foreign Minister Surin Pitsuwan =
prepares to leave on a visit to Burma tomorrow.

A delegation from the Civil Aviation Department, headed by its new =
director-general, Sawat Sitthiwongse, is due in Rangoon today. Burmese =
authorities have rejected a written "provisional understanding" between =
THAI and Myanmar Air made two years ago which raised the number of seats =
per week to 3,800.

They said that was 300 more seats a week than a formal agreement =
concluded about four years ago between the civil aviation authorities of =
the two countries. The number of seats was not a matter to be decided =
between airlines, they said.

THAI currently operates 14 flights per week on the Burma route, using an =
Airbus, and Myanmar Air two, using smaller planes.

THAI earns US$16 million a year from its Burma flights, of which it =
claims only 5% is profit. The route is one of its most lucrative as =
there is no competition from other airlines.

Rangoon's demand for 12% of THAI's revenue was in total disregard that =
there are costs involved and only 5%, or $800,000, was net profit, the =
source said.

Senior officials involved in the talks are playing down the issue, as =
any comment could further sour the already deteriorated relations =
between the two countries.

An informed source said THAI was expected to table a proposal to help =
find passengers for Myanmar Air, and a more equitable profit sharing =
formula.

Talks have been ongoing since early this year. One source said Burmese =
authorities have made it clear that the issue has to be settled without =
further delay.

The delegation, which is due back in Bangkok on Saturday, is composed of =
senior officials from THAI, the Civil Aviation Department of the =
Transport Ministry, and the Economic Affairs Department of the Foreign =
Ministry.

Burma closed its land and maritime borders with Thailand in the =
aftermath of the occupation of its embassy in Bangkok on Oct 1-2 by =
Burmese dissident students.

Thailand gave the raiders safe passage to the border after they released =
all hostages. Burma has demanded their apprehension and trial.


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<DIV><FONT face=3DArial size=3D2>
<DIV align=3Dleft><FONT face=3DARIAL,HELVETICA>Bangkok Post - Nov 18,=20
1999.</FONT></DIV>
<DIV align=3Dleft><STRONG><FONT color=3D#900000 =
face=3DARIAL,HELVETICA>THAI-BURMESE=20
RELATIONS</FONT></STRONG></DIV><BR><!-- HEADLINE -->
<H1 align=3Dleft><FONT size=3D4>Junta demands rise in airspace =
fee</FONT></H1>
<H1 align=3Dleft><!--KICKER--><FONT size=3D2><I>Aviation dispute set to =
cloud Surin=20
visit</I><BR><BR></FONT></H1>
<P><FONT color=3D#000000><!--BYLINE--><B>Nusara Thaitawat and Amornrat=20
Mahitthirook </B><BR></P>
<P><FONT size=3D+2><B>R</B></FONT>angoon is demanding a bigger slice of =
the=20
revenue from air travel between Thailand and Burma, or a major reduction =
in the=20
number of seats on offer, an informed source said.</P>
<P>Burmese aviation authorities told Thai Airways International to hand =
over 12%=20
of the revenue from its profitable Burma route.</P>
<P>If not, the number of seats available each week on the service, flown =
by THAI=20
and Myanmar Air, must be reduced by about 1,000 to 2,500, the source =
said.</P>
<P>The ultimatum has been issued as Foreign Minister Surin Pitsuwan =
prepares to=20
leave on a visit to Burma tomorrow.</P>
<P>A delegation from the Civil Aviation Department, headed by its new=20
director-general, Sawat Sitthiwongse, is due in Rangoon today. Burmese=20
authorities have rejected a written "provisional understanding" between =
THAI and=20
Myanmar Air made two years ago which raised the number of seats per week =
to=20
3,800.</P>
<P>They said that was 300 more seats a week than a formal agreement =
concluded=20
about four years ago between the civil aviation authorities of the two=20
countries. The number of seats was not a matter to be decided between =
airlines,=20
they said.</P>
<P>THAI currently operates 14 flights per week on the Burma route, using =
an=20
Airbus, and Myanmar Air two, using smaller planes.</P>
<P>THAI earns US$16 million a year from its Burma flights, of which it =
claims=20
only 5% is profit. The route is one of its most lucrative as there is no =

competition from other airlines.</P>
<P>Rangoon's demand for 12% of THAI's revenue was in total disregard =
that there=20
are costs involved and only 5%, or $800,000, was net profit, the source=20
said.</P>
<P>Senior officials involved in the talks are playing down the issue, as =
any=20
comment could further sour the already deteriorated relations between =
the two=20
countries.</P>
<P>An informed source said THAI was expected to table a proposal to help =
find=20
passengers for Myanmar Air, and a more equitable profit sharing =
formula.</P>
<P>Talks have been ongoing since early this year. One source said =
Burmese=20
authorities have made it clear that the issue has to be settled without =
further=20
delay.</P>
<P>The delegation, which is due back in Bangkok on Saturday, is composed =
of=20
senior officials from THAI, the Civil Aviation Department of the =
Transport=20
Ministry, and the Economic Affairs Department of the Foreign =
Ministry.</P>
<P>Burma closed its land and maritime borders with Thailand in the =
aftermath of=20
the occupation of its embassy in Bangkok on Oct 1-2 by Burmese dissident =

students.</P>
<P>Thailand gave the raiders safe passage to the border after they =
released all=20
hostages. Burma has demanded their apprehension and=20
trial.</P></FONT></FONT></DIV></BODY></HTML>

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