Thai Airways Traffic Recovery Rate Faster Than Expected

[george]

Thai Airways load factor improves

BANGKOK: -- The recovery rate of passenger traffic on Thai Airways International flights in the aftermath of the Bangkok airport crisis has been faster than expected, thanks partly to some improvements in the country's international image.

The flag carrier was able to fill 75% of its seats in January after a slump in December when the seizure of Suvarnabhumi and Don Mueang airports by anti-government protesters paralysed much of the kingdom's air traffic.

"Our January load factor was much better than expected. We did not think earlier it would ever hit 70%," said THAI executive vice-president Pandit Chanapai.

The improved political landscape, heavy price promotions by THAI and a campaign by the Tourism Authority of Thailand have lessened the impact from the airport upheaval.

The load factor was improving in spite of the general decline in global travel demand, Mr Pandit added.

THAI was forced to cancel more than 1,000 flights from Nov 25 and Dec 4 when thousands of People's Alliance for Democracy (PAD) laid siege to the airports to demand the removal of the Somchai Wongsawat government.

The airport seizure cost the airline an estimated 20 billion baht in actual and potential revenue losses.

With the country's international image is gradually restored and various campaigns bearing fruit, Mr Pandit was cautiously optimistic about the continuation of relatively good load factors, saying the February figure should exceed 70%.

Airlines in general need a load factor of around 60-65% to break even.

He said that government leaders' efforts to build the country's image in international forums, including the forthcoming Asean Summit in Hua Hin, were far more effective for reviving travel than any other individual campaign.

THAI has also been restoring its capacity, which was severely cut back after the airport closures, to pre-shutdown levels. The airline does not plan to introduce any new destinations for the rest of this year but intends to increase frequencies on certain routes such as Bangkok-Milan, which will rise to five flights a week in July from four.

Mr Pandit confirmed that there was a good prospect for a pre-tax operating profit this year due to cost controls under a proposed rehabilitation and revenue-improvement plan.

The airline aims to reduce expenditures by 10% between 2009 and 2011. However, securities analysts expect the airline's net loss for 2008 to widen from an earlier forecast of around 10 billion baht to 16 billion because of the surge in oil prices, slowing travel demand and the airport closures.

-- Bangkok Post 2009-02-16

[londonthai]

He said that government leaders' efforts to build the country's image in international forums, including the forthcoming Asean Summit in Hua Hin, were far more effective for reviving travel than any other individual campaign.

it's impossible to measure country's image by the new government work, so it's more of a political statement and a.s licking.

nothing counts more for a traveller than value for money and for the airline to offer competitive prices - last year thai airways lost 16bln, some other airlines made profits as much.

[PhilHarries]

Recently I flew Seoul - Bangkok - London and back with THAI and all flights were as close to 100% as I could tell (well cattle class anyway).

Although it wasn't cheap I spent 5 days in Thailand, 6 days in UK and 5 days in Thailand on the way back. Those stopovers jacked the price up a fair bit so I can't really judge the value for money side. But I agree with londonthai, who the hel_l tunes in to politicians when choosing flights?

[Ricardo]

Hopefully the Thai management will draw the logical conclusion, that cutting their prices as they did, helps fill their planes ?

[neverdie]

All the flights I have been on lately have been packed to the rafters, business class fairly full too.

Obviously there are still flights going some places with lighter loads, but i dont know where to?

[stament]

All the flights I have been on lately have been packed to the rafters, business class fairly full too.

Obviously there are still flights going some places with lighter loads, but i dont know where to?

I don't mind paying more for Thai & BA provided they offer the same level of service as indirects such as Etihad, etc or same as direct Eva (Lon to BKK). However, in my experience both BA and Thai are pretty poor when it comes to inflight entertainment for Economy passengers.

[tw25rw]

I wonder how many of these are new sales and how many are existing bookings that didn't cancel. I know how close I was to cancelling my flight on Dec 5.