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Two new airlines set to take off next year


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Two new airlines set to take off next year

By THE NATION

 

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Thai Eastar Jet and Thai Summer Airways -- two new airlines -- are expected to get off the ground next year, according to Civil Aviation Authority of Thailand (CAAT) director-general Chula Sukmanop.

 

Thai Eastar is a joint venture between Thai investors and South Korean carrier Eastar Jet, while the latter is between Thai and China investors.

 

Chula said that Thai Eastar Jet was expected to obtain the CAAT's air operator certificate next month. CAAT is in the process of issuing a certificate to Thai Summer.

 

He added that both carriers could recruit 100 per cent Thai pilots given that CAAT's current Air Operating Licence does not set the ratio of foreign pilots the carriers have to hire.

 

According to Thai Summer Airways’ homepage, it is a regional low-cost airline registered in Thailand. It was established in early 2018 and is scheduled to be officially opened in January 2020. The company is headquartered in Bangkok, and its operations base is located at the U-Tapao Rayong-Pattaya International Airport.

 

Source: https://www.nationthailand.com/business/30379707

 

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-- © Copyright The Nation Thailand 2019-12-23
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12 minutes ago, ChrisY1 said:

"He added that both carriers could recruit 100 per cent Thai pilots "........and there's plenty of Thai pilot stock....that they can't achieve international accreditation is unimportant....

in addition, they slow down when they are asked to know a few words of English in order to enter the University.
But apart from that, everything is fine in the kingdom

 

in fact, if young Thai students do not want to learn English , it is their most absolute right , but they do not come to cry if the places that pay well are taken by Vietnamese or Filipino ...

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There's a snowball's chance in hell I'm flying either one of these two airlines. Neither the Korean or Chinese partners give me any comfort in term of safety or reliability. But if they force the competition to lower fares a bit - great for me. It's a sad state of affairs for Thailand that the Vietnamese airline market is in so much better shape than the one in Thailand.

THAI should not try to compete with these carriers - there is no way they can come anywhere close to the fares these guys charge and by definition, there is only one lowest price player in a market. THAI would be much better served by focusing on the few profitable domestic routes and improving their international product.

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10 minutes ago, phkauf said:

There's a snowball's chance in hell I'm flying either one of these two airlines. Neither the Korean or Chinese partners give me any comfort in term of safety or reliability. But if they force the competition to lower fares a bit - great for me. It's a sad state of affairs for Thailand that the Vietnamese airline market is in so much better shape than the one in Thailand.

THAI should not try to compete with these carriers - there is no way they can come anywhere close to the fares these guys charge and by definition, there is only one lowest price player in a market. THAI would be much better served by focusing on the few profitable domestic routes and improving their international product.

I agree about the competition issue....  and I suspect it is not TGs intentions to go head-to-head against these new entrants- quite simply TGs CASK/CASM will never be low enough on a long term sustainable basis to really be competitive.  Unlike these new entrants and other existing LCCs/ULCCs, TG is simply set up and has legacy costs that simply can’t be avoided or really minimized without radically altering what they do/ who they are.... long-term leases for lounges and other ground services, cargo infrastructure and staff, catering infrastructure and staff... etc etc...  all things that LCCs or ULCCs contact out at lower costs and with easier “out” options should they need to.

 

i think TGs future lies in their regional medium range and long-haul markets where they can leverage: a) Thai Smile (WE) hub connectivity, b) alliance feeder/code share volume and c) their premium economy and premium cabins. 
 

TGs “competitor” really isn’t another carrier per se.... IMHO right now, their biggest competitor is themselves and how they are operationally structured, their business plan, staffing and other labour efficiencies, marketing, route/fleet issues, etc... that’s where I think TGs challenges are - not so much to do with 2 new regional, single cabin, LCC entrants flying to what I presume will be leisure, low(er) margin markets. 

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2 hours ago, ChrisY1 said:

"He added that both carriers could recruit 100 per cent Thai pilots "........and there's plenty of Thai pilot stock....that they can't achieve international accreditation is unimportant....

...and worrying!

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I am almost over excited (There's a bulge in my shorts) at the prospect of having a new airline which will have an early departure and late return from Muang Phitsanulok!  And to think they will be able to secure fine young Thai pilots with years of flying experience to get me safely to Grung Tep and back........... Oops!  That's my prunning shears in my pocket!  8" of cold hard steel, with soft grip rubber handles for my delicate hands. ????

 

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Recent events with Eastar Jet:

https://www.nasdaq.com/articles/s.koreas-jeju-air-to-buy-51-stake-in-eastar-jet-for-%2459-million-2019-12-17

SEOUL, Dec 18 (Reuters) -

  • South Korean budget airline Jeju Air Co Ltd 089590.KS signed a preliminary deal to buy a 51% stake in unlisted low-cost carrier Eastar Jet Co for about 69.5 billion won ($58.93 million), Jeju Air and its parent AK Holdings 006840.KS
  • The news of a majority stake sale in Eastar Jet came after Eastar asked cabin crew members earlier this year to take unpaid leaves as part of emergency cost-cutting plans to help it keep flying. The carrier's losses had risen as demand for travel to Japan fell and as its two Boeing 737 MAX jets were grounded.

Investment by Thai investors seems a bit premature with current potential unstable financial risks. Maybe wait a couple of quarters to see the financial direction for this airline first.

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1 hour ago, phkauf said:

There's a snowball's chance in hell I'm flying either one of these two airlines. Neither the Korean or Chinese partners give me any comfort in term of safety or reliability. But if they force the competition to lower fares a bit - great for me. It's a sad state of affairs for Thailand that the Vietnamese airline market is in so much better shape than the one in Thailand.

THAI should not try to compete with these carriers - there is no way they can come anywhere close to the fares these guys charge and by definition, there is only one lowest price player in a market. THAI would be much better served by focusing on the few profitable domestic routes and improving their international product.

 

 

This doesn't make sense.  You say there's a "snowball's chance in Hell" that you would fly with these Johnny-come-latelys cos of their probable low safety and reliability, AND YET you would fly with them if they charged (say) 1000 baht less for a trip of your choice.

So, you'd endanger your life for the sake of a thousand baht????

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4 hours ago, holy cow cm said:

Sounds totally idiotic to allow yet another competitor into Thailand at a time when Thai Airways is on the chopping block. And this government wants to be accepted as legitimate and worthy?

I disagree. These are private airlines, which have to be smart and efficient to survive. Thai on the other hand is government subsidized, and barely has a reason to operate efficiently. More airlines are a good thing for the consumer. There is nothing about Thai Airways that is good for the consumer. 

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1 minute ago, cnx355 said:

Thai Eastar Jet is listed on airfleet.net with only 1 Boeing 737-800 delivered Sept 01 2019.

 

So I guess they do not need too many pilot at the moment.

 

Thai Summer Airway is not listed yet on airfleet.

 

 

It's probably someone's unwanted 737-Max....

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23 minutes ago, spidermike007 said:

I disagree. These are private airlines, which have to be smart and efficient to survive. Thai on the other hand is government subsidized, and barely has a reason to operate efficiently. More airlines are a good thing for the consumer. There is nothing about Thai Airways that is good for the consumer. 

Yes but the government should close the door to any other new airli9nes as is bad for business to Thai Air in the end.

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1 hour ago, holy cow cm said:

Yes but the government should close the door to any other new airli9nes as is bad for business to Thai Air in the end.

Completely disagree. Thai air has never been competitive. A good percentage of the seats on any given flight are freebies given to army, police, and government officials. They will never be competitive, until they take control away from the government and privatize the airline. Competition does not matter. 

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