PC Air Seeks B1.5bn Damages from Korean Partners

28th Jan 2013

A record Bht1.5 billion is the amount that PC Air is seeking for the compensation damage it suffered following the stranding of more than 400 passengers at Incheon airport in South Korea after their plane was refused to take off on a return flight to Bangkok.

The beleaguered airline has filed the case in a Korean court against two Korean partners, Skyjet, its sales agent and Jae Sin, a jet fuel supplier. According to its CEO, Peter Chan, the case were being prepared by the Police who would forward it to the city prosecutors in Incheon.

The airline said that the two companies didn't only give them public humiliation that tarnished their reputation but also committed financial crime which is more damaging to their operation as a business entity.

To recall, a PC Air flight was refused to leave by the airport personnel at Incheon International Airport in October last year with more than 400 passengers on board.

PC Air's lone aircraft, an Airbus 310-222 that seats 200 passengers were not permitted to take off as scheduled at South Korea's largest and busiest airport on request from its sales agent and jet fuel supplier. As a result hundreds of clueless passengers left stranded in Incheon International Airport. The aircraft was not permitted to fly on a return flight back to Bangkok allegedly because of unpaid bills by the airline to its Korean fuel supplier which amounted to ten million baht.

The incident must have been a simple miscommunication between the airline and its Korean supplier. It alleged that Jae Sin, its Korean jet fuel supplier, billed PC Air extra amount whose purpose was not properly understood by the airline. Unable to decipher what the extra amount was intended for, PC Air refused to pay and as a result, its sales agent, Skyjet closed its service counter in the airport and Jae Sin refused to refuel the aircraft.

Of course, with its tank empty, the plane couldn't take off leaving many Thai tourists stranded in the airport for over 24 hours.

Following the incident, PC Air was put under investigation and was ordered by Thai authority to suspend its operation after it got information that the incident was the result of the airline's refusal to honor its payment obligations to its Korean jet fuel supplier.

However, the airline conducted its own investigation and collected evidence against the two partners and found out that its sales agent, Skyjet had been remiss in not paying Jae Sin. With this discovery, it is suing the two partners for B1.5 billion compensation damage and is in the process of severing its ties with the two companies.

The Department of Civil Aviation has already lifted the suspension of operations against PC Air and is hoping to fly again within 30 days.

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