Bangkok Airways Sees Double Digit Profit Growth, Targets South Asia Market

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Bangkok Airways sees double digit profit growth, targets South Asia market

By Suchat Sritama

The Nation

Bangkok Airways predicts that tourist numbers will increase by 58 per cent this year on the back of improved political stability, with minimal impact from the border chaos, while it targets doubledigit growth by entering the emerging South Asia market next month.

President Puttipong PrasarttongOsoth said yesterday that the private airline expected its profit to soar by 27 per cent on revenue of Bt10.5 billion and its passenger count to ascend by 19 per cent from more than 2.6 million last year.

"This reflects Thailand's position as Asia's most popular destination. We will also benefit from the growth of neighbouring countries, since Thailand is widely used by tourists as a gateway and stopover for other Southeast Asian countries," he said.

The carrier plans to start operating six flights a week from Bangkok to Mumbai in India on March 2, and a daily service from Bangkok to Dhaka in Bangladesh on March 27.

It is confident that both routes, which are part of the airline's 2011 expansion strategy, will achieve a 60percent average load factor.

Last year, 700,000 Indians and 60,000 Bangladeshis visited Thailand. The airline hopes the overall number of travellers will increase 15-20 per cent this year.

The airline has not faced any headwinds from the conflict between Thailand and Cambodia. Its flights from Bangkok to Phnom Penh and Siem Reap are running as usual with an average load factor of 60 per cent.

Its subsidiaries in Cambodia - a travel agent and hotel - are still operating normally.

"Our business in Cambodia generated 1015 per cent of our total revenue of Bt8 billion last year. And we are not much affected by the current problem," he said.

A new Airbus A319 or A320 will be delivered at the end of the year, helping to boost flight frequency by 20 per cent so it can add seats on the new TratSamuiPhuket route, which is proving very popular.

Last year, an extra service was added to three routes from Bangkok, bringing flights per day to Phuket to six, flights per day to Phnom Penh to four and daily flights to Rangoon to two.

The company plans to add more flights for highdemand routes, starting with BangkokChiang Mai, increasing from four to five flights day.

Ariya PrasarttongOsoth, vice president for sales, said the new South Asia routes were being promoted by offering roundtrip airfares starting at Bt5,590 for Mumbai through March and Dhaka through April.

The airline this year will focus on online bookings through its redesigned website with the aim to increase such bookings to 35 per cent or Bt2.8 billion of total revenue.

ML Nandhika Varavarn, vice president for corporate communications, said the rebranding campaign launched last year would continue this year especially for the domestic market to create better awareness.

All frontline personnel will get new uniforms, including flight attendants, ground staff and reservation staff. The uniforms are being designed exclusively by MooPolpat Asavaprapha, creator of the Asava fashion line, with a budget of Bt15 million.

-- The Nation 2011-02-17

[Ricardo]

Passengers up 19%, profit up 26%, this is an embarrassing demonstration for TG !

[Tropicalevo]

Passengers up 19%, profit up 26%, this is an embarrassing demonstration for TG !

But it is the Bangkok/Samui cash cow that is doing it. Let more TG flights to Samui and see what happens!

[bkkjames]

lets do the math:

revenue of Bt10.5 billion last year

increase such bookings to 35 per cent or Bt2.8 billion of total revenue.

35% of 10.5 billion = 3.675 billion

Close enough.

[Boater]

Passengers up 19%, profit up 26%, this is an embarrassing demonstration for TG !

But it is the Bangkok/Samui cash cow that is doing it. Let more TG flights to Samui and see what happens!

Ariya PrasarttongOsoth, vice president for sales, said the new South Asia routes were being promoted by offering roundtrip airfares starting at Bt5,590 for Mumbai through March and Dhaka through Apri

so it will be cheaper to fly to mumbai then bangkok from samui

[smokie36]

Passengers up 19%, profit up 26%, this is an embarrassing demonstration for TG !

But it is the Bangkok/Samui cash cow that is doing it. Let more TG flights to Samui and see what happens!

Ariya PrasarttongOsoth, vice president for sales, said the new South Asia routes were being promoted by offering roundtrip airfares starting at Bt5,590 for Mumbai through March and Dhaka through Apri

so it will be cheaper to fly to mumbai then bangkok from samui

Here's a seven page and counting rant on the Bangkok Samui route.

http://www.thaivisa.com/forum/topic/395198-the-bangkok-airways-rant-thread/

[rwhoov]

Does anyone know how long Bangkok Air is going to have the monopoly on the BKK-Siem Reap route? It's easy to make money when you're the only one allowed to fly this lucrative route. Can't wait for the day Air Asia is allowed to fly this route; think we will see a dramatic drop in Bangkok Air's profit!

[Boater]

Does anyone know how long Bangkok Air is going to have the monopoly on the BKK-Siem Reap route? It's easy to make money when you're the only one allowed to fly this lucrative route. Can't wait for the day Air Asia is allowed to fly this route; think we will see a dramatic drop in Bangkok Air's profit!

also the samui - bangkok route ! , where they charge upto 6,000 THB one way !!!!!