Thai To Launch Own Low Cost airline Next Year

[Lite Beer]

THAI to launch own low costairline next year

By The Nation.

Thai Airways International (THAI) will operฌate a new super lowcost airline next year, aimed at beating back the challenge from budget carriers and reclaiming passengers back to the national airline.

The announcement comes after the board of directors allowed Ampon Kittiampon to continue as chairman for another threeyear term.

The move is seen as an attempt by the THAI management to pave the way for having its own super lowcost airline despite signing an agreement with Singaporebased Tiger Airways last year to establish a joint venture budget airline. The joint venture, Thai Tiger Airways, is expected to start services this month.

Ampon Kittiampon, chairman of the board of directors, said the board yesterday approved a plan to establish a new lowcost airline as part of its 12year business plan.

The airline has already extended its agreement with Tiger Airways for another three months, from June to August this year, to continue the project.

The agreement extension is to avoid a possible suit by Tiger Airways for violation of the contract.

Ampon said the company would set up a new business unit to run the new lowcost airline. The company plans to start the service in March or April next year.

The new airline can be run without approval from the Ministry of Transport or the Cabinet as it is wholly owned by THAI.

According to sources, some in the internal management want to call the new airline Thai Wings or Thai Silk.

He said the new airline would position itself in the lowest segment, similar to lowcost airlines operating in the market.

"At the moment, THAI maintains its plan to run both Thai Tiger Airways and Thai Wings. However, THAI should keep only the best one in the future," he said.

Thai Wings will operate in the domestic market and regional destinations such as Singapore, Hong Kong and Macau.

Thai Airways will remain a premium airฌine, Thai Tiger Airways will focus on regional markets and Thai Wings will be a lowcost airline. THAI will use retired pilots for the airฌline and will source cabin crew and staffs from outsource company Wind Span Co - like most other lowcost carriers.

THAI president Piyasvasti Amrannand will head the unit and a new management will take over later.

THAI will utilise its five Boeing 737s, and rent two narrowbodied aircraft for the first year of operations. The new carrier will need 11 aircraft. Each of the aircraft will feature up to 99percent economy class seats, with no business or first class.

Ampon said the company would break even within the first year of operation as the cost is not very high. It expects to achieve a 7080 per cent load factor in the first year.

He added that Nok Air, THAI's lowcost subsidiary, would continue its services.

-- The Nation 2011-05-21

[whybother]

So, they already have Nok Air. AND they have an agreement to run Thai Tiger Airways. AND they're starting up another NEW low cost airline?

Great business plan.

[dunkin2012]

is Bkk airways one of 'em?

perhaps, it will work cos' this guy is a sort of smart..

[terryp]

sounds like a real mess of basically 3 carriers all competing with themselves?..but that said ANYTHING that smacks AirAsia up the head is a massive positive in my mind.

All these extra extras fare loadings are coming to an end; just last week the EU drafted a bill to make low cost airlines publish the complete full inclusive fare..NO MORE Starting from fare and Asia will have to follow as they are just coping the same European business plan

[pisico]

Low cost from a government airline? That will be the day!

Not even if they subsidize it!

[samurai]

THAI will use retired pilots for the airฌline and will source cabin crew and staffs from outsource company Wind Span Co - like most other lowcost carriers.

Do retired pilots come cheaper?

[timekeeper]

just re-badge the whole fleet

every time i have traveled with Thai its been like a budget carrier anyway..........

[edwinchester]

So, they already have Nok Air. AND they have an agreement to run Thai Tiger Airways. AND they're starting up another NEW low cost airline?

Great business plan.

I was thinking exactly the same thing. Surely in such a safety relevant industry they should have maybe just a little more focus on what services they want to provide.

[anterian]

THAI will use retired pilots for the airฌline and will source cabin crew and staffs from outsource company Wind Span Co - like most other lowcost carriers.

Do retired pilots come cheaper?

surely a pilot retires because he is past the safe flying age, slower reflexes etc. I assume the copilot will be replaced by a trained paramedic and defibrillators will be stand cabin equipment?

[mrtoad]

just re-badge the whole fleet

every time i have traveled with Thai its been like a budget carrier anyway..........

I'd agree with that. Crap airline, high prices. I dread to think how crap the planes will be with their budget version.

[dumball]

'whybother' timestamp='1306024579' post='4440054']

So, they already have Nok Air. AND they have an agreement to run Thai Tiger Airways. AND they're starting up another NEW low cost airline?

Great business plan.

[/quote)

They have obviously taken this plan from the hotel business , when there are not enough clients to fill what is already there , build some more , as mentioned above , it would be far more pertinent to improve existing services with the monies it will take to start yet another airline . That being said , first they appear to have the need to reconnoiter what the word ' Service ' with all of its aspects , means to the people who avail themselves of these purported ' Services ' , an attitude improvement would go a long way to achieve this aim .

[haveaniceday]

My Goodness..... I had to recheck this was not a " Not The Nation " Satire piece.

Mind Boggles doesn't it.

Nok Air is already a Low Cost model, way to easy to just expand that really !!!

"Each of the aircraft will feature up to 99percent economy class seats, with no business or first class." Priceless

Edited May 22, 2011 by haveaniceday

[Jiu-Jitsu]

No new thinking...just copy.

[whybother]

My Goodness..... I had to recheck this was not a " Not The Nation " Satire piece.

Mind Boggles doesn't it.

Nok Air is already a Low Cost model, way to easy to just expand that really !!!

"Each of the aircraft will feature up to 99percent economy class seats, with no business or first class." Priceless

Maybe the other 1% is standing room.

[sirchai]

THAI will use retired pilots for the airฌline and will source cabin crew and staffs from outsource company Wind Span Co - like most other lowcost carriers.

Do retired pilots come cheaper?

I guess there are several reasons for pilots to retire. Why can't they call the airline the retorted pilots airline? :jap:

[sirchai]

My Goodness..... I had to recheck this was not a " Not The Nation " Satire piece.

Mind Boggles doesn't it.

Nok Air is already a Low Cost model, way to easy to just expand that really !!!

"Each of the aircraft will feature up to 99percent economy class seats, with no business or first class." Priceless

Maybe the other 1% is standing room.

Maybe an outstanding room? :jap:

[whybother]

Maybe the other 1% is standing room.

Maybe an outstanding room? :jap:

Outstanding on the wings?

Q: What is the definition of a farmer?

A: A man outstanding in his field.

[PoorSucker]

My Goodness..... I had to recheck this was not a " Not The Nation " Satire piece.

Mind Boggles doesn't it.

Nok Air is already a Low Cost model, way to easy to just expand that really !!!

"Each of the aircraft will feature up to 99percent economy class seats, with no business or first class." Priceless

Maybe the other 1% is standing room.

Maybe an outstanding room? :jap:

There one seat on the toilet.

[jimbeam1]

just re-badge the whole fleet

every time i have traveled with Thai its been like a budget carrier anyway..........

I couldn't agree more.

They do at least know who their closet rivals are?

jb1

[jimbeam1]

Ampon said the Company would break even in the first year of operation, as the cost is not very high?

Wow it is so easy!

Bet it doesn't even get off the ground.

jb1

[JeffreyMcCollum]

A few month back Thai said they would lower their prices to compete with the Low cost guys, Good idea but it never happened, And Thai uses tricks like advertise a low fare and pack on heavy fees. That is why I have not used then except as a last resort. I go with Bangkok airways not becasue they are cheeper, they are not, but because they offer better service, at a fair price.

Flying into and out of Chiang Mai to BKK they use 747-400's, 777's, and A330. All not the cheepest to fly. And so confusing, Now they want to use their 12 year + old planes to fly, that too is not that economical.

Time to maybe get some fresh eyes in there are rethink everything out.

Thai airways could be so much more, but it's not.

[timekeeper]

what about this budget carrier?

[fiercesnake]

sounds like a real mess of basically 3 carriers all competing with themselves?..but that said ANYTHING that smacks AirAsia up the head is a massive positive in my mind.

All these extra extras fare loadings are coming to an end; just last week the EU drafted a bill to make low cost airlines publish the complete full inclusive fare..NO MORE Starting from fare and Asia will have to follow as they are just coping the same European business plan

I think Thaivisa needs a "LIKE" button similar to Facebook. Totally agree. So annoying with the nonsense of additional charges by the time you add all the extras on. Air Asia is a classic for never having a single flight that claim a few Baht to whatever destination they make up on their ads.

Most people should get a good laugh out of this one, coz you know it's so true:

[rwhoov]

sounds like a real mess of basically 3 carriers all competing with themselves?..but that said ANYTHING that smacks AirAsia up the head is a massive positive in my mind.

All these extra extras fare loadings are coming to an end; just last week the EU drafted a bill to make low cost airlines publish the complete full inclusive fare..NO MORE Starting from fare and Asia will have to follow as they are just coping the same European business plan

Ever fly Ryan Air? Flew them once; that was enough. They had so many mandatory extra fees, such as a wheelchair fee, that more than doubled the fare. They recently considered charging for use of the bathroom on board, but somehow that one didn't fly. Once at the airport it is more like a cattle call than anything else. My flights with Air Asia have been 200% better than anything Ryan Air has to offer. Don't believe they have any mandatory add-ons other than taxes.

[ginjag]

THAI will use retired pilots for the airฌline and will source cabin crew and staffs from outsource company Wind Span Co - like most other lowcost carriers.

Do retired pilots come cheaper?

surely a pilot retires because he is past the safe flying age, slower reflexes etc. I assume the copilot will be replaced by a trained paramedic and defibrillators will be stand cabin equipment?

Stewards with walking Frames, all passengers supplied with a wheelchair,

[notime]

sounds like a real mess of basically 3 carriers all competing with themselves?..but that said ANYTHING that smacks AirAsia up the head is a massive positive in my mind.

All these extra extras fare loadings are coming to an end; just last week the EU drafted a bill to make low cost airlines publish the complete full inclusive fare..NO MORE Starting from fare and Asia will have to follow as they are just coping the same European business plan

Ever fly Ryan Air? Flew them once; that was enough. They had so many mandatory extra fees, such as a wheelchair fee, that more than doubled the fare. They recently considered charging for use of the bathroom on board, but somehow that one didn't fly. Once at the airport it is more like a cattle call than anything else. My flights with Air Asia have been 200% better than anything Ryan Air has to offer. Don't believe they have any mandatory add-ons other than taxes.

I flown Ryan Air 5 times on my last trip to Europe in summer 2009. Flights were rather full and we were invited to cross onto the bridge few times only to be stopped for 15 min later, standing stranded there while we could have been still sitting in the lounge. But apart of that the flight were always on time and we saved an absolute fortune by booking RyanAir well in advance as against traveling by trains, buses or anything else. It also allowed us to visit many interesting destinations spread our across Europe that otherwise we wouldn't be able to visit like Paris, Bologna, Ibiza, Girona (Barcelona), Poznan (in Poland) and London. The flight between these cities were between 40 and 80 Euro each including the check-in luggage! We pre-printed our boarding passes before flights to save few extra Euros. Luckily we didn't need to use a wheelchair anywhere but than again how many travelers do? Thank you Ryan Air! Wake up everybody if you expect 5 star service, free booze and foot massage on board plus the flight for 50 Euro.

[rreddin]

just re-badge the whole fleet

every time i have traveled with Thai its been like a budget carrier anyway..........

I'd agree with that. Crap airline, high prices. I dread to think how crap the planes will be with their budget version.

I never thought I would see the day when I agreed with Timekeeper, but I do. "Crap planes"? They will use the existing fleet - they can hardly be any worse.

[timekeeper]

just re-badge the whole fleet

every time i have traveled with Thai its been like a budget carrier anyway..........

I'd agree with that. Crap airline, high prices. I dread to think how crap the planes will be with their budget version.

I never thought I would see the day when I agreed with Timekeeper, but I do. "Crap planes"? They will use the existing fleet - they can hardly be any worse.

another damned cyber stalker!

[FOODLOVER]

sounds like a real mess of basically 3 carriers all competing with themselves?..but that said ANYTHING that smacks AirAsia up the head is a massive positive in my mind.

All these extra extras fare loadings are coming to an end; just last week the EU drafted a bill to make low cost airlines publish the complete full inclusive fare..NO MORE Starting from fare and Asia will have to follow as they are just coping the same European business plan

I think Thaivisa needs a "LIKE" button similar to Facebook. Totally agree. So annoying with the nonsense of additional charges by the time you add all the extras on. Air Asia is a classic for never having a single flight that claim a few Baht to whatever destination they make up on their ads.

Most people should get a good laugh out of this one, coz you know it's so true:

That was <deleted> HILARIOUS! What is the name of this trio? Would love to see the whole concert!

[jimbeam1]

THAI will use retired pilots for the airฌline and will source cabin crew and staffs from outsource company Wind Span Co - like most other lowcost carriers.

Do retired pilots come cheaper?

surely a pilot retires because he is past the safe flying age, slower reflexes etc. I assume the copilot will be replaced by a trained paramedic and defibrillators will be stand cabin equipment?

Stewards with walking Frames, all passengers supplied with a wheelchair,

They can also re employ all the overweight/oversized Stewards and Stewardesses?

jb1