Thai AirAsia opposes airfare reductions due to operational costs

[khunjeff]

3 hours ago, webfact said:

The Thai AirAsia CEO also stated that Thai carriers would not revert to price wars

 

How can he speak for how other airlines might price their flights? I'm sure they haven't colluded, since that would of course be illegal 🙄

[NorthernRyland]

I paid 10,000 for 2 round trip tickets from CM to Hua His on March 22nd. How much did that used to cost? I never went before. Also is it cheaper flying different times of year? I thought March was low season because I live in the North when it's ruined now but maybe it's still busy in March around those parts?

[hotchilli]

3 hours ago, webfact said:

The airline’s Chief Executive, Santisuk Klongchaiya, has suggested increasing flights during the Songkran festival as a potential strategy to decrease average fares.

If fare rise during the Songkran festival period that is gouging pure and simple.

Costs per flight are already worked out, if the plane is full profits will be made.

Increasing fares due to demand is screwing the public.

[Toby1947]

3 hours ago, Dolf said:

Some of these vip buses charge 700 or 800 baht and take 10 to 12 hours versus 1200 baht for a plane ticket.

Yes but there's average 200 on a plane. And they only run on bloody Paraffin 

[fvw53]

3 hours ago, Tropicalevo said:

If the government wants air fares to be lower, it should subsidise them. Not tell airlines what their pricing policy will be.

The travellers will decide if an airline is too expensive or not.

 

 

3 hours ago, webfact said:

 

Thai AirAsia has weighed in on the issue of high airfares which prompted calls for price reductions, arguing that slashing ceiling prices is not a feasible solution due to increased operational costs borne by airlines since the onset of the pandemic.

 

The airline’s Chief Executive, Santisuk Klongchaiya, has suggested increasing flights during the Songkran festival as a potential strategy to decrease average fares.

 

Santisuk explained that costs of operation, including fuel and maintenance, have surged since the pandemic hit. Furthermore, the aircraft supply chain has yet to recover to its pre-pandemic state. He stated that it’s typical for airfares to increase during the Songkran holiday due to high demand. The Civil Aviation Authority of Thailand (CAAT) regulates these airfares, setting ceiling prices for each route.

Thai AirAsia plans to keep prices reasonable, adjusting them based on each route’s seasonality and passenger demand. As a response to CAAT’s policy, the airline proposes to add more late-night and early-morning flights to help lower average fares.

Santisuk argued against the implementation of a minimum price for airlines, citing that such a measure contradicts free market principles and could negatively affect consumer benefits from airlines’ promotions.

 

The Thai AirAsia CEO also stated that Thai carriers would not revert to price wars as past experiences have proven this to not yield positive operational results. He suggested that the government could assist in reducing passenger costs by adjusting the jet fuel tax rate.

 

Setting standard prices

 

On the same note, Tansita Akrarittipirom, director of commercial operations at Thai AirAsia, highlighted the necessity for low-fare promotions in the Thai market. She noted that the majority of the public does not have high disposable income, but travel remains a desired activity.

 

Thai AirAsia has set a target of 15 to 20% revenue growth this year, aiming to expand its fleet to 60 aircraft with a seat capacity of 23.3 million. The airline has plans to add three A321neo and one A320ceo jets to its fleet, with the intention to operate 33 domestic and 58 international routes to 18 countries this year, reported Bangkok Post.

 

Sarun Benjanirat, deputy director-general of CAAT, mentioned that the agency is considering a new ceiling price that will accommodate all airlines. The price will be set for each route and adjusted based on each airline’s services. Factors such as fluctuating fuel price are to be considered in setting an appropriate rate. The implementation of these new rules is expected in the second or third quarter of this year.

 

by Puntid Tantivangphaisal

Photo courtesy of Bangkok Post

 

Source: The Thaiger 2024-03-09

 

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Edited March 9 by fvw53
mistake in composing text

[Zack61]

I find the prices quite reasonable. Compared to what I pay in Australia they are as cheap as chips. A taxi or Uber to the airport is equivalent to 2000-3000 baht which is way more than the cost of any flight in Thailand.

[dinsdale]

1 hour ago, Dolf said:

Nok Air 884 baht for April DM to Udon

 

How is that not cheap?

Nok Air DMK to UTH April 2

 

Edited March 9 by dinsdale

[mancub]

17 minutes ago, hotchilli said:

If fare rise during the Songkran festival period that is gouging pure and simple.

Costs per flight are already worked out, if the plane is full profits will be made.

Increasing fares due to demand is screwing the public.

No different to hotel prices when an event is on. it's how market forces work in the travel industry. However, Bangkok Air's virtual monopoly at Samui is another case altogether.

[Bangkok Barry]

3 hours ago, Dolf said:

Some of these vip buses charge 700 or 800 baht and take 10 to 12 hours versus 1200 baht for a plane ticket.

 

Indeed. I used to take the bus from Somdet, Kalasin to Bangkok but pre-pandemic the flight from KK was cheaper. Now it's around 1000 so still a much better option.

[dinsdale]

44 minutes ago, alex8912 said:

$10. I'd get over it. Did you complain about how low the fares were before?  Because they were. 

You think in dollars I think in Baht. I also think a 40% increase is A LOT.

Edited March 9 by dinsdale

[Dolf]

5 minutes ago, dinsdale said:

Nok Air DMK to UTH April 2

 

April 22 was the date i used

[dinsdale]

1 hour ago, Dolf said:

Not true. I paid the same prices in 2019.

Good for you, however, as I have stated in 2019 the fare on my route was at it's cheapest Bt750. Now at it's cheapest it's Bt1050.

[Dolf]

1 minute ago, dinsdale said:

Good for you, however, as I have stated in 2019 the fare on my route was at it's cheapest Bt750. Now at it's cheapest it's Bt1050.

If that's your biggest issue in life it is going ok. Not exactly a big issue. 300 baht is a large pizza.

 

[phetpeter]

If the government want the airline to lower fares give them the Thai postal service contract to deliver mail over the country. cutting down the use of trucks and manpower driving up and down. plus the airline could also offer parcel and courier companies a good deal to do the same for them. it could offer the airline the right to increase flights and return and service other airports they have dropped due to low demand such as Phetchabun. mail and cargo can pay a good return as well as increase their profits and allow airfares to be lower.

[Dolf]

11 minutes ago, Toby1947 said:

Yes but there's average 200 on a plane. And they only run on bloody Paraffin 

What does that mean?

[1happykamper]

3 hours ago, Dolf said:

1200 baht CM to Don Muang in April. That's not expensive.

 

 

It's not cheap either. 2019 2 months in advance would be 700 thb 

[phetpeter]

29 minutes ago, hotchilli said:

If fare rise during the Songkran festival period that is gouging pure and simple.

Costs per flight are already worked out, if the plane is full profits will be made.

Increasing fares due to demand is screwing the public.

So how about talking to the petrol companies who always increase the cost of fuel during holiday periods when people are forced to pay as their only way to go home is by car. forget the railway services unless you live within a few hundred kilometres of Bangkok on the main corridor routes.

[dinsdale]

2 minutes ago, Dolf said:

If that's your biggest issue in life it is going ok. Not exactly a big issue. 300 baht is a large pizza.

 

Not the point really is it. The whole point of this thread is is price gouging going on. That 1 pizza could well be 2 if I'm getting ripped off.

[Dolf]

1 minute ago, 1happykamper said:

It's not cheap either. 2019 2 months in advance would be 700 thb 

Show me proof

[JCauto]

1 hour ago, Robert Paulson said:

Government needs to get out of the airline industry completely. Get rid of the tsa. Our flights would be easier and the costs would drop dramatically.

 

i got a promotional 1 baht flight to phuket once and I seriously could not believe how much the taxes and fees were. I can’t remember the exact cost but I think it was about 40 bucks, for a free flight! 

 

Sure, take away the agency responsible for security at airports and that will fix everything! The Guv'ment shouldn't be involved at all! They shouldn't build the airports, hire and regulate the Air Traffic Controllers, set safety standards for airplanes and airplane components, make sure the pilots are well-trained and up on their certifications, enable the international transfer of passengers and luggage, undertake immigration and customs duties...

Because it's the marvelous private sector that can do all these things much more effectively and efficiently, amirite? Such as has been done successfully numerous times, including in....oh, problem. It's never been done successfully. But we can point to some things where for example we can compare the Public Sector approach to the Private, such as Health Care. There's one country that seems fixated on private sector health care, that is the USA. As it is also the world's main proponent of a capitalism-beats-all approach, then they would surely be able to show the rest of the "commie" world how good ol' fashioned American know-how and get-it-doneness can overcome the sluggish creep of socialism. And the results prove it conclusively! The costs for health care per capita are ranked:

 

https://data.oecd.org/healthres/health-spending.htm

 

Guess who's number one? But of course, you'll point out, this is because they get the best health outcomes with their far more high-tech and efficient approach:

https://www.theguardian.com/us-news/2021/aug/05/us-healthcare-system-ranks-last-11-wealthiest-countries

 

Hmmmmm. So the private sector approach is the MOST expensive of the different ones taken by the most developed countries in the world and also doesn't even appear within the lists of the best health outcome countries in the world.

 

In my opinion, the private sector approach works well for much of the economy but absolutely and utterly fails when it comes to provision of necessary services. These include health care, environmental and safety regulation, law enforcement, education and the military. Those are clearly best left to government to manage as demonstrated by numerous studies and the US' valiant efforts to prove the social democracies pre-eminence in the modern age.

[Dolf]

Just now, dinsdale said:

Not the point really is it. The whole point of this thread is is price gouging going on. That 1 pizza could well be 2 if I'm getting ripped off.

Fuel is up 11% this year. Airport taxes would be up too.

 

Airlines got smashed for 2 years re covid. I dont see a problem. Its called capitalism.

 

Dont buy cakes from expensive shops or tickets on expensive flights if you don't want.

 

[spidermike007]

Just say no. Vote with your feet. When prices go crazy, run for the hills. Deny inflation. Deny stupidity. 

[dinsdale]

2 minutes ago, Dolf said:

Airlines got smashed for 2 years re covid. I dont see a problem. Its called capitalism.

So they are recouping lost profits (don't forget the govt. bailouts) by upping the price. I call that price gouging.

[Dolf]

1 minute ago, dinsdale said:

So they are recouping lost profits (don't forget the govt. bailouts) by upping the price. I call that price gouging.

I call it common sense. 

[malibukid]

thai airasia's customer service has declined post pandemic.  will not fly with them. got sick on my last flight with them.

[Dolf]

A 1050 baht plane ticket is nothing really. Try taking a London taxi or a Japanese one.

 

 

[Spamhead]

1 hour ago, dinsdale said:

I remember one of these promotions not so long ago. 12% discount. Thing is the put the price up 12% and then discounted that price by 12%. 0% savings from the previous day's fare.

Sorry but that's plainly not true. If they put the original price up 12% and then discounted the resultant price by 12% you still received a discount on the original price. That's just basic maths.

[Jonathan Swift]

1 hour ago, alex8912 said:

$10. I'd get over it. Did you complain about how low the fares were before?  Because they were. 

Agreed. I think some people just got bored complaining about the same old same old in their own countries so they came here to find vast new frontiers of topics to complain about, most of which are meaningless as you pointed out. 

[dinsdale]

27 minutes ago, Spamhead said:

Sorry but that's plainly not true. If they put the original price up 12% and then discounted the resultant price by 12% you still received a discount on the original price. That's just basic maths.

No. Original fare was let's say Bt1000 on and again let's say Feb 1. Feb 2 the fare goes up 12% so its now Bt1120. Same day 12% discount special comes in. Fare goes down by 12% and is now back to Bt1000. It's a con. If I bought the ticket on Feb 1 or Feb 2 the cost of the Airfare is the same. Original price Bt1000. Price after 12% discount the next day Bt1000. I would think this is pretty straightforward. 12% off original price would be Bt880 which is what I thought was going to happen. 

Edited March 9 by dinsdale

[dinsdale]

6 minutes ago, Jonathan Swift said:

Agreed. I think some people just got bored complaining about the same old same old in their own countries so they came here to find vast new frontiers of topics to complain about, most of which are meaningless as you pointed out. 

Been here 20 yrs mate and I know that airfares have gone up post covid. It might be the cost of a pizza for some but it all adds up.

Edited March 9 by dinsdale