Bangkok - Thailand's first no-frills airline, One-Two-Go, has suspended all operations for two months for "financial restructuring," media reports said Saturday.

One-Two-Go, the country's first low-cost airline, started operations in December 2003 and is now the first to fall victim to escalating world oil prices, the airline's top executive said.

"The company has been losing money for months, and we cannot continue like this," founder and chief executive Udom Tatiprosongchai told The Nation newspaper.

On Friday, the airline announced the suspension of all operations from July 22 to September 15. It has 700 employees and eight MD 80 jets.

A One-Two-Go plane crashed on landing during a heavy downpour on Phuket Island in October 2007, killing 90 people on board.

Relatives of some of the victims have started a website, www. investigationudom. com, to campaign for an investigation into Udom's business conduct in managing the airline, claiming that he forced pilots to fly unsafe planes. (dpa)