Thaworn to push THAI’s aircraft purchase plan

[snoop1130]

Thaworn to push THAI’s aircraft purchase plan

By THE NATION

 

Thaworn Senniam

 

Deputy Transport Minister Thaworn Senniam intends to place before the Cabinet by the end of this month Thai Airways International (THAI)’s plan to purchase 38 new aircraft worth Bt150 billion.

 

He said that following discussions with the Office of the National Economic and Social Development Council, THAI would need to buy more aircraft to raise its competitiveness with rival airlines in spite of its current losses. "This is because passengers today tend to prefer flying in new aircraft for comfort and value-for-money reasons. If THAI cannot compete in providing such service, the airline will suffer more losses," he said.

 

Regarding the source of investment capital for the purchase of new aircraft, Thaworn said raising the registered capital should be most appropriate as it will not impact the country’s financial status. Seeking loans is seen as difficult as THAI has been making losses.

 

Regarding the five units of retired aircraft A340-500 and A340-600, which are parked and ready for sale, he suggested that THAI should fly such aircraft on European routes instead, as it will create more value for the airline.

 

Thaworn said that he also wants THAI to speed up generation of revenue, especially from the sale of tickets through agents.

 

“I have ordered THAI to reorganise its ticket sales through all agents, who account for 75 per cent of all ticket sales but are not quite efficient. Some agents buy tickets in bulk but later return the unsold tickets to the airline.

 

“Due to this lack of efficiency, THAI is burdened with this expense and a lost opportunity to find more revenue,” said Thaworn.

 

Thaworn said that THAI has to adjust its rules with new agents, such as giving them the exact timeframe for selling the tickets. Agents who cannot sell tickets as targeted should be punished with a fine or blacklisting, or losing their right to be agents. The airline also should find other potential channels to increase ticket sales, such as through online ticketing and application, as these channels account for only 25 per cent of total ticket sales.

 

Thaworn said that he also wants Thai Smile Airways to revise and clarify its positioning in the market.

 

“In my personal view, Thai Smile should reposition itself as a low-cost airline, from the current ‘light premium’, which is in the middle between premium and low-cost airlines. From my own analysis, the number of seats Thai Smile offers is not different from that of low-cost airlines, but its tickets are priced higher. So it cannot compete with low-cost airlines,” Thaworn said.

 

“Thai Smile should adjust its positioning as a ‘low-cost’ carrier and reduce some services to make the tickets cheaper. Most low-cost airlines will also fly short-distance routes and require fewer services,” he added.

 

Source: https://www.nationthailand.com/business/30374404

 

-- © Copyright The Nation Thailand 2019-08-07

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[Burma Bill]

Unbelievable - how can THAI buy 38 new aircraft worth billions of baht when it is billions of baht in debt?

[Almer]

4 minutes ago, tomazbodner said:

Yes, ruin the only reason people fly Thai Smile...

I do not think the average flyer relates to the age of an aircraft, a refurbished 777 is a far better experience for 13 hours than a new cramped A350 or similar, a bad experience with my knee's around my neck does nothing to assist my loyalty to an airline

[orchidfan]

All Nippon airways ANA..still flies 30 to 40 767's. Old aircraft but HIGHLY refurbished with excellent interiors.....and excellent ca in crews.

It can be done.

[BoganInParasite]

Doesn't seem to understand airline distribution, or the economics of the A340.

[Montnoveau]

2 hours ago, Burma Bill said:

Unbelievable - how can THAI buy 38 new aircraft worth billions of baht when it is billions of baht in debt?

Because they are 51% state owned. They can decide whatever they want.

[geoffbezoz]

He must just have chosen his new model from the Bentley catalogue.

[Searat7]

47 minutes ago, BoganInParasite said:

Doesn't seem to understand airline distribution, or the economics of the A340.

There were 9 A-340’s sitting around but a month ago they announced a deal to sell 8 of these....possibly some were not sold but I think they would lose money flying these fuel guzzlers with 4 engines unless they were full. Purchase plan for new planes should also include disposition of all inactive planes and there might be other model planes collecting dust too. This airline will never succeed until they hire an experienced airline executive with turnaround experience and give him free reign to implement big changes.

[Toosetinmyways]

Lufthansa has listed 4 A340-600 frames, C/N 482, 523, 537 and 569, for sale, with delivery available after September 2016. Still for sale

These 4 additional frames are in addition to the 4 already grounded/stored A340-600 frames (763, 790, 794, 812) which have been available since earlier this year.

 

Air Canada retired it's fleet of A340-500's at a young age in favour of the B772lr. They wet leased the aircraft to TAM. TAM used them for a little while and then they bought 777's. Last I heard these plane, still young, are sitting at the far end of a airport in South America waiting for the next operator that will never come.

[Burma Bill]

1 hour ago, Searat7 said:

There were 9 A-340’s sitting around but a month ago they announced a deal to sell 8 of these....possibly some were not sold but I think they would lose money flying these fuel guzzlers with 4 engines unless they were full. Purchase plan for new planes should also include disposition of all inactive planes and there might be other model planes collecting dust too. This airline will never succeed until they hire an experienced airline executive with turnaround experience and give him free reign to implement big changes.

"hire an experienced airline executive with turnaround experience and give him free reign to implement big changes"

How about Ryanair's Michael O'Leary - he would certainly rattle a lot of cages!!

[Redline]

Sell the airline.  I will never fly THAI because of price, and how me and my wife were treated at their corporate offices.

 

my wife’s friend works there, and she told us it was going to be a bad experience, and it was.  The funniest thing is that we went there today clarify and update information regarding their frequent flyer program ???????? bye bye