Well this sucks. As if One-Two-Go being delivered a standing eight-count wasn’t bad enough, Nok Air has reportedly thrown in the towel on its Bangkok-Phuket route, writes Chutima Sidasathian over at Phuket Wan. Flights from Bangkok to Chiang Rai, Ubon Ratchatanee and Krabi have also been axed. This is terrible news. It means that Air Asia is the only low-cost airline serving several of Thailand’s major destinations.

Phuket is a huge boon for tourism in Thailand, but with Nok Air and One-Two-Go out of the picture, you have to wonder what the effect will be.

From Phuket Wan:

A Nok Air spokeswoman blamed the cuts on oil prices and the general economic downturn.

This news comes a day after gasohol pump prices were cut by almost 5 baht a liter, while the price of diesel was slashed by 3.5 baht a liter. It was widely speculated that Nok Air was in trouble.

Air Asia is now in a prime position to jack up its prices on certain routes because it has no other airline to compete with.