BANGKOK — Thailand’s Civil Aviation Department (CAD) has grounded Orient Thai Airline and its low-cost subsidiary, One-Two-Go, for 30 days commencing July 22 because of poor safety standards.

One-Two-Go last week said it would suspend services for two months because of financial losses, but the CAD yesterday announced it had suspended the two airlines’ certificates as low-cost carriers for 30 days.

The airline risks having its aviation license revoked if it fails to tackle the defects that led to the suspension of their flight services today.

The suspensions come amid growing concerns about the airlines’ safety standards

About 40,000 passengers on their booking lists will be affected by the 30-day flight suspension starting today and will receive combined compensation of 70 million baht. They can also opt to be transferred to other airlines operating on the affected routes.

Orient Thai and OneTwoGo are the second Thai airline operator subjected to service suspension after similar action was imposed on Sky Aviation.

Mr Chaisak said said One-Two-Go’s defects lie in a lack of self-quality assurance and quality assurance on leased aircraft.

“The lessee, Orient Thai, is not allowed to breach safety standards, particularly on scheduling and poor administration. Orient Thai also has no staff of its own and is assisted by One-Two-Go staff.

“In addition, One-Two-Go trained Orient Thai’s pilots with an unwarranted MD-80 series training program. Orient Thai’s training does not follow the manual and the airline submitted false documentation for the pilots’ efficiency tests,” he said.

The CAD will also suspend the licenses of One-Two-Go’s seven pilots – six Indonesians and one Venezuelan – due to false documentation. Two Thai pilots have also been suspended for 30 days on a similar charge.

Mr Chaisak said all defects must be solved within 30 days. In case of negligence or incomplete action, the department can further suspend the service or revoke the licenses.

“The CAD will file criminal suits against their pilots, inspectors and the companies within two weeks,” Mr Chaisak said.

However penalties for breaches of the Thailands Aviation Act are extremely light and limited to no more than six months imprisonment, a 1,000-baht (about US$31) fine or both.

Udom Tantiprasongchai, owner and CEO of both airlines, has vowed to continue in business despite the trouble. He said One-Two-Go was negotiating with a consortium of investors from Hong Kong, the USA and Singapore who operate aviation and other businesses in Asia.

“One-Two-Go will increase capital and be upgraded to a full-service carrier, so as to compete with rivals, including Thai Airways International, while Orient Thai will serve as a cargo and charter flight operator” he said.

The airlines operate eight MD-80 Series and seven Boeing 474s. All eight MD-80 Series aircraft must be grounded until all defects are corrected; the Boeing 474s can continue operation.

One-Two-Go’s safety standards first came under the spotlight when one of its planes crashed at Phuket International Airport last year.

Lawyers for the British and US families of the 90 victims are seeking UK£125 million (8.32 billion baht) in compensation in US courts in a case that may shed a harsh light on the cost-cutting and safety standards of some budget airlines.