Thai Airways To Hand Over Three Routes To Nok Air

[george]

GOOD I PRAISE ... DOUBTFUL I RAISE

THAI on target to hand over routes to its partner Nok Air

By Pridiyathorn Devakula

IT IS WIDELY KNOWN that Thai Airways International (THAI) is planning to terminate its flights on three routes; Bangkok-Phitsanulok, Bangkok-Ubon Ratchathani and Chiang Mai-Mae Hong Son, having Nok Air fly those routes instead.

I find that such a move is quite rational as the number of passengers on these routes is below the break-even point and THAI has been absorbing loss on these routes for quite a long time.

However, the management of THAI did not abandon the passengers who need to fly on those routes by assigning Nok Air, which is partly owned by THAI, to provide the services. Nok Air can operate at a lower cost with a higher probability of breaking even.

Soon after the announcement of the intended flight termination, opposing voices were heard from politicians, some businessmen and the provincial governor - reasoning that such a termination would rid Phitsanulok and Ubon Ratchathani of the opportunity to become the air travel hub. Such comment did surprise me because air travel on the these routes would still remain - the only change was in the operator, from THAI to Nok Air.

To become a hub, however, does not require only air flight services but depends much on the ability of the target city to attract tourists and businessmen. THAI has been operating flights to Phitsanulok and Ubon Ratchathani for quite some time, providing opportunities for more air travel.

Nevertheless, the number of air travellers has not increased enough to justify additional flights. This is good proof that the chance of becoming a hub is very slim.

The change from THAI to Nok Air does not limit the chances of Phitsanulok or Ubon Ratchathani to become a hub. If demand for air travel of the routes really increases,Nok Air could increase flights on the routes or THAI could possibly return to offer the service.

I use the services of Nok Air once in a while and find that the facility is convenient. The planes are relatively new as they are rented from THAI. Their quality and that of the facilities of the two airlines are about the same. The planes rented to Nok Air may be smaller than those of THAI flying to Chiang Mai or to Phuket, since the routes to Phitsanulok and Ubon Ratchathani are shorter. Smaller planes mean better economy.

However, these smaller planes are of similar quality and safety standard to THAI aircraft in terms of seats and other facilities. | There seems to be only one feature where Nok Air is inferior to THAI on the same route - Nok Air does not provide business class on the two routes for businessmen who need privacy or for politicians who want to upgrade their tickets. The absence of business class is not an obstacle to tourism and as it's a low cost airline, does not impose any problems on tourists either.

I could say that tourists, especially Thai, prefer travelling with low cost airlines. THAI has to reduce its airfares to compete against the low cost airlines for domestic tourists. As for the need for privacy by some businessmen, experience in Europe where business class is not provided for domestic travel shows that businessmen eventually adjust to being on a level with other passengers.

It is not right to maintain the routes with a substantial amount of loss, simply to accommodate some businessmen and politicians who are a minority.

At an earlier time, when hearing opposing voices from businessmen and politicians, I believed that THAI would successfully implement this good plan as I have full faith in the determination and courage of Piyasvasti Amranand, president of THAI, who will always fight for rightness. The incident of the former executive chairman - who abused the airline by carrying an unimaginable amount of overweight, and was finally dismissed - might I believe, have something to do with Piyasvasti's insistence in maintaining justice. Such action has boosted the morale of THAI staff a great deal.

Recently, Piyasvasti announced his intention to reduce the privileges granted to airline directors and executives and also to streamline the upgrading practice for politicians. I hope his objective is successful. This may seem a trivial matter which would not generate additional profit for THAI. However, it is about correctness and rightness, an important stepping stone to create confidence for management and staff at THAI to stand for the right without fear of any intervention from politicians.

This will further lead to courage in protecting the company's interests in bigger matters such as the purchase and procurement of necessary utilities and most importantly the procurement of aircraft, which has been a subject of rumour about corruption for decades.

I wish Piyasvasti every success and would request other THAI executives and staff, who do care for THAI and would like to see THAI progress further gracefully, to render their support to Piyasvasti for his intended action. The unity of all executives and staff could be a good shield against any influence from politicians of ill-will.

-- The Nation 2010-02-08

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[Spee]

An interesting article. As one who has flown the Bkk-Phs route many times, I'm a little puzzled by the move. This route was served by clean, nice, relatively new Boeing 737 aircraft, and the Phs terminal is new and quite nice. Every flight I've ever taken was at least half full and often very full. With a one-way rate typically in the range of 1500-2000 baht, it seemed to be good fit in terms of supply and demand. I hope that Thai and/or Nok continues to service this route.