THAI to cancel 6 routes to 4 Asean countries

By THE NATION

 

 

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.”

 

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.

 

Related News:

THAI needs to modify its rehabilitation plan to survive: Sumet
THAI relaunches Bangkok –Sendai flights

THAI resumes regular flights as Narita reopens

 

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

 

-- © Copyright The Nation Thailand 2019-10-21

Follow Thaivisa on LINE for breaking Thailand news and visa info

Thai and Thai Smile same same 

15 minutes ago, webfact said:

Our prices this year have been reduced to a record low

With respect, your low may not be as low as other airlines low - and that's a problem

24 minutes ago, webfact said:

or giving privileges to frequent fliers

and stop giving privileges to the senior executives?

“Adjust our strategy” or “make a different direction “. That will solve it NOT! What about the vocabulary “ Reform, complete overhaul,new leadership “ ? Never in a million years


Sent from my iPhone using Thaivisa Connect

nope, there is only one strategy that will work: put a LARGE broom through the emmigration department.

Edited October 21, 20196 yr by dafniusDuckus

3 hours ago, RotBenz8888 said:

and stop giving privileges to the senior executives?

It's not just senior executives, it's government employees, government employees families, monks all travelling first class.

Quote:-

"have low customer capacity"

 

Oh really! I have recently flown from Khon Kaen with Thai Air Asia on "Fly-Thru" flights to/from Phnom Penh and Yangon. They were almost FULL. 

8 hours ago, webfact said:

we may take a different direction

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

Tick tick tick.....

11 hours ago, webfact said:

THAI is looking into the shutting down of six flight routes to 4 Indochinese countries, namely Laos, Cambodia, Vietnam and Myanmar.

Nice way to treat your neighbours!

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!

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 

 

11 hours ago, webfact said:

or giving privileges to frequent fliers,” he added.

Privileges to frequent fliers is one thing... free flights to connected people is costing you dearly !

Finally something at TG that makes sense. From BKK/DMK you can get a flight to Saigon or Hanoi for well under $100 by multiple carriers and TG is $250. There is no way they can compete on those routes. 

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.

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.

15 hours ago, RotBenz8888 said:

and stop giving privileges to the senior executives?

TIT na

If you no like, you can home loy. 5555

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

5 minutes ago, Redline said:

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

I hear some Thomas Cook managers are available.

 

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. 

2 hours ago, oldhippy said:

I hear some Thomas Cook managers are available.

 

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

ridiculous/hilarious  as reactions to it imply.

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 !

As my annual biz class ticket on THAI went from $4500 to $5500 this year (two years back $3800) I moved to pig class but after my return flt next week it's goodbye THAI after 40 years.

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. 

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.

I fly the bkk'- hcmc route queit regually and it is always full both ways . Never on time but full.

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!

Should have been done 10 years ago. Any flight under 2 hours Thai International should give to Smile so they can concentrate on the longer haul quality

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.