Transport Co expects its full-year loss to hit 100 million baht due to intense competition from low-cost airlines and rising fuel prices.
"Transport Co will face losses this year in confronting competition from low-cost carriers which continues to grow," said Noppharat Karunyavanich, acting president of Transport Co.
"The number of passengers on several bus routes has dropped sharply," he said.
Mr Noppharat, who is also serving as the company's executive vice president supervising bus operations management, conceded the firm's promotions and 20% discounted bus fares, which were implemented in January, have failed to achieve favourable results.
"The frequency of bus services has now been reduced and the number of leased buses has declined from 600 to 571," Mr Noppharat said, adding that several affiliated bus operators were found to have shut their businesses.
The company also has to shoulder higher fuel costs while fares have not yet increased, he said.
He said the current fares are based on an oil price of 20 baht a litre, but the price of fuel has now climbed to 24 baht a litre. Bus fares, he said, should have been increased by three satang per kilometre.
The company's operating loss now stands at 30 million baht, he noted.
According to the acting president, the company's inter-country buses travelling between Thailand and neighbouring countries are still not a major source of revenue.
Most of the routes are still within a 75km radius from Thailand to neighbouring countries, he said. A total of 14 routes are operational, covering 12 to Laos and another two to Cambodia.
He said a new route linking Nan with Xayaburi and Luang Prabang in Laos will begin service in July this year, adding that six buses will be operational on this route at a fare of 680 baht.
Speaking about Transport Co's plan to return the Mor Chit bus terminal on Kamphaeng Phet Road to the State Railway of Thailand (SRT), Mr Noppharat said a meeting of representatives from relevant organisations and himself, attended by Deputy Transport Minister Ormsin Cheevapruck, concluded that the land handover must be completed by 2018.
A 45-rai land plot in Rangsit will serve as the new terminal, which will provide 125 bus routes to the North, Northeast and Central Plains, he said.
The development of the Rangsit terminal will require more than 700 million baht. The company has a curent cash flow of about 3 billion baht.
The SRT will set aside a 16.7-rai land plot for the Mor Chit bus terminal for Transport Co, which will provide services using short-haul buses and public vans.
Mr Noppharat said the company is likely to receive a 20-rai land plot next to the Mor Chit BTS station from the Department of Land Transport (DLT) for further development of a public van service.
According to Mr Noppharat, Transport Co has also come up with a new plan to purchase 382 intercity buses, up from 100 units originally.
The company is now working on the bidding terms of reference, he noted.
Bus manufacturers from any country may join in the bidding, he said, adding that a bus from a European automaker is estimated to cost up to 10 million baht while one from a Chinese maker can cost up to 7 million baht.