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THAI to cancel 6 routes to 4 Asean countries


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THAI to cancel 6 routes to 4 Asean countries

By THE NATION

 

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Sumeth Damrongchaitham, President of Thai Airways International (THAI), said on Monday that THAI is looking into the shutting down of six flight routes to 4 Indochinese countries, namely Laos, Cambodia, Vietnam and Myanmar.

 

These routes, which all emanate from Bangkok’s Suvarnabhumi Airport, are to Vientiane, Luang Prabang, Phnom Penh, Hanoi, Ho Chi Minh and Yangon.

 

“These routes are all covered by a small number of flights and have low customer capacity,” he said. “Once the cancellation plan is finalised, THAI will assign Thai Smile Airways to cover these routes instead.”

 

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Sumeth Damrongchaitham

 

Sumeth further explained that competition had become fiercer, with every airline dropping prices to stay ahead of its rivals. “THAI needs to adjust our strategies too to preserve our reservation rate. We will focus on rolling out promotional campaigns until year end.”

 

“However, next year’s strategy remains to be seen. Our prices this year have been reduced to a record low and if this strategy doesn’t work, we may take a different direction, such as seeking more partners for organisation tickets, increasing online channels, or giving privileges to frequent fliers,” he added.

 

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THAI relaunches Bangkok –Sendai flights

THAI resumes regular flights as Narita reopens

 

Source: https://www.nationthailand.com/news/30377594

 

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-- © Copyright The Nation Thailand 2019-10-21
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11 hours ago, webfact said:

“However, next year’s strategy remains to be seen. Our prices this year have been reduced to a record low and if this strategy doesn’t work, we may take a different direction, such as seeking more partners for organisation tickets, increasing online channels, or giving privileges to frequent fliers,” he added.

The other option is to cop an even bigger loss next year!

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10 hours ago, tracker1 said:

Thai and Thai Smile same same 

To be fair I think there is a pretty big difference.  If Thai (TG) runs it, they’ll have to use an A330 which is configured for just under 300 total seat count (they have a few different cabin configurations within the A333 fleet) and each having about 3 dozen C-cabin seats as well.

 

by contrast, Thai Smile (WE) runs it using an A322 which is essentially an all-Y configuration.

 

So... I think that TG is correct in two pints... that those sectors do not: a) have enough demand to consistently create a high enough load factor and b) have enough demand for paid C-cabin volume to justify the use of a 2-cabin model 


while the ultimate ownership of TG and WE are essentially from the same source, the two do have quite different cost structures. For example the operating crew for WE and TG are on different pay scales and work rules.

 

i really think that Thai and Thai smile  really needs to be set up much like how SQ and MI (Silk) are arranged— that to me makes sense and I think better matches against what is the local competition for short haul/regional flying 

 

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2 hours ago, Moti24 said:

Nice way to treat your neighbours!

From the article it seams the flights aren't really shut down. Instead they'll be handled by Thai SMILE which, I guess, can provide the flights at lower prices.

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Very simple International (not Thai) Airline cost projection.    Cost per seat mile.   Call it whatever you want, this is how the industry evaluates its productivity.   EVERY other major Asia flag carrier has gone through some sort of reorganization to adjust it's operating budget to complete with the new LLC's.  That is with the exception of the Royal Carrier with the Purple tail.  They have white-washed concepts and balance sheets, but fail to deal with their "seat cost per mile or klick", call it what you want.  Should they ever bring their seat mile cost to compete with other carriers, they will have to start with all three of the major expenses.  Fleet hulls, Fuel and labor expense.  Yes that includes the "white letter" funds and mismanaged labor schedules.

However, I believe the internal corruption is so ripe that it they won't stem the loses until the Government closes the bank vault. That may never happen, even though productive carriers are pushing them aside.  I would guess that many carriers are competing for the BKK/DKM/CNX/PHK gates that TAT is holding for the Purple boys, albeit at a loss of income.

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2 hours ago, Redline said:

 Bring in an experienced foreigner to straighten it out-problem solved

Just like Japanese civilians jumping off cliffs during the Yank landings on the Japanese mainland during WW2, bringing a foreigner in would have millions committing suicide here at the loss of face. 

 

They just cannot cope with the idea that a foreigner can outdo them. 

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13 hours ago, Srikcir said:

Find a buyer to take THAI 100% private and get the Thai taxpayer out of this long-running financial disaster.

And where do you think they might find a buyer ? Ain't gunna happen !

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On 10/21/2019 at 8:29 AM, tracker1 said:

Thai and Thai Smile same same 

No they are definitely not and I do not like flying Thai Smile. Thai Smile uses smaller cramped airplanes and the service is different. But they do have hotter stewardesses than Thai airways older baggage. 

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3 hours ago, shy coconut said:

Thomas Cook airline was a successful operation, so your comment isn't as

ridiculous/hilarious  as reactions to it imply.

It's hard not to be extremely profitable when you hold a monopoly in parts of your business.

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8 hours ago, shy coconut said:

Thomas Cook airline was a successful operation, so your comment isn't as

ridiculous/hilarious  as reactions to it imply.

 

4 hours ago, Blue Muton said:

It's hard not to be extremely profitable when you hold a monopoly in parts of your business.

Tell me again, how much debt TC accumulated?

What Thais can do, the British can do better!

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1 hour ago, oldhippy said:

 

Tell me again, how much debt TC accumulated?

What Thais can do, the British can do better!

 

10 hours ago, shy coconut said:

Thomas Cook airline was a successful operation, so your comment isn't as

ridiculous/hilarious  as reactions to it imply.

 

6 hours ago, Blue Muton said:

It's hard not to be extremely profitable when you hold a monopoly in parts of your business.

Just to be clear, I was refering to the monopolies that TC held, not to Thai.

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