webfact Posted November 14, 2019 Share Posted November 14, 2019 Budget airlines seek measures to reduce financial burden By The Nation Representatives from five low-cost airlines namely Thai Air Asia, Thai Lion Air, Nok Air, VietJet Air, and Bangkok Airways formally requested the Finance Minister on November 13 to help them solve their financial problems, Vice Minister of Prime Minister’s Office Charnkrit Detwithak said. He explained that the issue was generated by a decrease in customers from 80-100 per cent to 70-89 per cent per flight and the strengthening of the baht. Even though the lower price of oil has eased business costs, budget airlines are still facing a variety of problems, which have led to the downsizing and dissolution of some airlines. The airlines feel that the situation could be alleviated by lowering the excise tax for airplane fuel, currently at Bt4.726 a litre and controlling its limit on a sliding scale depending on the baht exchange rate. “We are concerned about the situation of all entrepreneurs, not only low-cost airlines. The representatives have requested the setting up of a committee to seek a solution and present it to the Minister of Finance and the Cabinet,” Charnkrit said. Source: https://www.nationthailand.com/news/30378323 -- © Copyright The Nation Thailand 2019-11-14 Follow Thaivisa on LINE for breaking Thailand news and visa info Link to comment Share on other sites More sharing options...
keith101 Posted November 14, 2019 Share Posted November 14, 2019 The Thai Gov has a huge surplus so just throw some cash their way that should alleviate some of their Burdon financially anyway . Link to comment Share on other sites More sharing options...
canopus1969 Posted November 14, 2019 Share Posted November 14, 2019 Thought Bangkok Air was supposed to the “Boutique” company not a cheap low cost outfit Link to comment Share on other sites More sharing options...
ChipButty Posted November 14, 2019 Share Posted November 14, 2019 They want you all out of business so Thai can have the monopoly Link to comment Share on other sites More sharing options...
MiNombreEsFicticious Posted November 14, 2019 Share Posted November 14, 2019 I was gonna suggest the airlines cut back on maintenance to save money, but they're probably already doing that. Never mind. Link to comment Share on other sites More sharing options...
RotBenz8888 Posted November 14, 2019 Share Posted November 14, 2019 More sick patients suffering from the rampant tourist deficiency. Will the doctor allow some palliative money injections? Link to comment Share on other sites More sharing options...
xylophone Posted November 14, 2019 Share Posted November 14, 2019 "Decrease in customers"...............but TAT states that all is OK on the tourism front? Link to comment Share on other sites More sharing options...
RJRS1301 Posted November 14, 2019 Share Posted November 14, 2019 8 minutes ago, MiNombreEsFicticious said: I was gonna suggest the airlines cut back on maintenance to save money, but they're probably already doing that. Never mind. Not sure cutting back on maintenance is a good idea. Link to comment Share on other sites More sharing options...
donnacha Posted November 14, 2019 Share Posted November 14, 2019 That's strange. I thought the TM 30 would increase the number of budget airline passengers. I certainly fly around Thailand on weekend breaks a lot more now that it also gives an excuse to spend Mondays at the Immigration office. Always a terrific laugh down there. Link to comment Share on other sites More sharing options...
Chang_paarp Posted November 14, 2019 Share Posted November 14, 2019 If business gets tough, put your hand out to the government for some money. Works for Thai and the farmers and... Don't look at your business model, ignore your customer feedback (they are just whingers) and don't look at the other ways to reduce costs and wastage... Link to comment Share on other sites More sharing options...
DLock Posted November 14, 2019 Share Posted November 14, 2019 Not according to the 4 flights I have taken this week - the flights were 100% full. Maybe its poor route choices, or poor times that need to be rethought. Link to comment Share on other sites More sharing options...
dcnx Posted November 14, 2019 Share Posted November 14, 2019 Are they implying that a race to the bottom isn’t a good business model? In true Thai fashion, now would be a great time for 2 or 3 more budget airlines to pop up. Link to comment Share on other sites More sharing options...
dcnx Posted November 14, 2019 Share Posted November 14, 2019 24 minutes ago, DLock said: Not according to the 4 flights I have taken this week - the flights were 100% full. Maybe its poor route choices, or poor times that need to be rethought. You mean flights were full during one of their biggest holidays? That’s absurd. Link to comment Share on other sites More sharing options...
PatOngo Posted November 14, 2019 Share Posted November 14, 2019 Supply and demand, it's not rocket science! …...Or will yet another "stimulus package" be the answer? Link to comment Share on other sites More sharing options...
GinBoy2 Posted November 14, 2019 Share Posted November 14, 2019 Without wanting to dampen everyones joy at being able to fly in Thailand, rather than risking life and limb on a bus or in a car. There are some cold hard economics at play. A route I am very familiar with; KKC-DMK/BKK It's pretty much a 1 hour flight. Roughly speaking it costs for an A320/B737 around $1500/Hr in jet fuel, which obviously does vary somewhat The typical price of a one way ticket from KKC is around ฿1000 or approximately $35. Both the Airbus & Boeing have a seating capacity of around 180, depending on configuration. So assuming a load factor of 80%, thats 144 butts on seats, multiply that by $35 and the revenue for that flight is $5040. Subtract your fuel cost and you get $3540. But that $1500 doesn't even come close to reflecting the total cost for the flight. You have pilots, flight attendants, landing fees, maintenance, gate agents etc, not to mention either the aircraft leasing cost, or the depreciation and interest for a purchased plane. Yes they can get good load factors on domestics routes, because they are offering fares which aren't that much different from a bus, which has orders of magnitude lower operating costs. So no wonder they are in trouble, just do the math! Link to comment Share on other sites More sharing options...
StayinThailand2much Posted November 14, 2019 Share Posted November 14, 2019 6 hours ago, xylophone said: "Decrease in customers"...............but TAT states that all is OK on the tourism front? Perhaps all those tourists take bus, train, or ship to arrive in Thailand... ???????? Link to comment Share on other sites More sharing options...
Scouse123 Posted November 14, 2019 Share Posted November 14, 2019 8 hours ago, canopus1969 said: Thought Bangkok Air was supposed to the “Boutique” company not a cheap low cost outfit When there is a chance of money to be saved on jet fuel, Bangkok airways is a budget airline. When we are paying over the odds to fly to Samui, it's a boutique airline! Link to comment Share on other sites More sharing options...
fruitman Posted November 14, 2019 Share Posted November 14, 2019 1 hour ago, Scouse123 said: When we are paying over the odds to fly to Samui, it's a boutique airline! A free glass of free orange juice doesn't make it a boutique airline. Link to comment Share on other sites More sharing options...
scorecard Posted November 14, 2019 Share Posted November 14, 2019 10 hours ago, canopus1969 said: Thought Bangkok Air was supposed to the “Boutique” company not a cheap low cost outfit Well they try to show that image but in reality the owner will ask for any handouts that might be on offer. By the way, it's the same owners as the Bangkok hospital network. Link to comment Share on other sites More sharing options...
trainman34014 Posted November 14, 2019 Share Posted November 14, 2019 10 hours ago, ChipButty said: They want you all out of business so Thai can have the monopoly They wouldn't know what to do with it even if they had it ! Link to comment Share on other sites More sharing options...
worgeordie Posted November 14, 2019 Share Posted November 14, 2019 Next it will be the Mom and Pop looking for a hand out,claiming financial ruin because of all the 7-11 's, supermarkets,you would think businesses would be able to solve their own financial problems without always looking for help. regards worgeordie Link to comment Share on other sites More sharing options...
justin case Posted November 15, 2019 Share Posted November 15, 2019 this is so typical ... too many same companies selling same <deleted> and complaining the business is going down just had a robinson built next to where I live... most of the shops were already in the other mini shopping mall a few hundred meters away from each other .... kfc's , boots, watson's, and other branches ... added value : 0 loud speakers shouting their product next to each other, no thank you, I will pass the only good thing: finally a FUJI without having to drive 15 km, lol Link to comment Share on other sites More sharing options...
thaibeachlovers Posted November 15, 2019 Share Posted November 15, 2019 21 hours ago, ChipButty said: They want you all out of business so Thai can have the monopoly I hope they all go broke. They are responsible for bringing too many people to LOS and that in turn has destroyed everything that was enjoyable about being a tourist in LOS. Link to comment Share on other sites More sharing options...
ndreamer Posted November 15, 2019 Share Posted November 15, 2019 18 hours ago, worgeordie said: Next it will be the Mom and Pop looking for a hand out,claiming financial ruin because of all the 7-11 's, supermarkets,you would think businesses would be able to solve their own financial problems without always looking for help. regards worgeordie im sure CP group gets more then there fair share of handouts Link to comment Share on other sites More sharing options...
Burma Bill Posted November 16, 2019 Share Posted November 16, 2019 On 11/14/2019 at 11:06 AM, canopus1969 said: Thought Bangkok Air was supposed to the “Boutique” company not a cheap low cost outfit Yes indeed as I have experienced trying to book a flight on-line from Chiang Mai to Yangon. The fare offered was a "promotion" and when I went to the "payment" tag, what appeared was vastly more expensive quoting additional fuel and administration costs, taxes and other charges on top of the fare offered. I cancelled the booking and will never try the airline again - a scam in my opinion. Link to comment Share on other sites More sharing options...
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