Thai Airways Drops Low-Cost Carrier Plan

[webfact]

AVIATION

THAI drops low-cost carrier plan

The Nation

BANGKOK: -- Thai Airways International's board of directors has decided very recently to not proceed with the proposed ultra low-cost carrier and will let its 49-per cent-owned Nok Air to launch international services next year, according to CAPA.

The centre of aviation news reported that the decision follows a study that was conducted over the last few months that examined the feasibility of expanding into the international market and potential routes. At the same time Nok and Thai Airways conducted a separate study that looked at a potential joint venture ultra low-cost carrier for the regional international market.

Nok Air CEO Patee Sarasin was quoted as saying that while Nok Air has decided to proceed with the Nok-branded project and that the Thai Airways board decided very recently to not proceed with the proposed ultra low-cost carrier.

Thai Airways originally unveiled plans in 2010 to launch a joint venture ultra low-cost carrier for the regional international market with Singapore-based Tiger Airways. But plans to launch Thai Tiger were dropped in 2011 after repeated delays in securing approvals to establish the new company.

After the Thai Tiger project fell through, THAI did not adjust its medium-term strategy, which continued to envision a four-brand matrix with a new ultra low-cost carrier for the regional international market. THAI executives as recently as Mar-2012 told CAPA that the group believed it still needed a new brand with a lower cost structure than Thai Smile and Nok. At the time it was open to exploring joint ventures with other foreign LCC groups to fill this void in its brand matrix.

In recent months, THAI also started to look at establishing a joint venture ultra low-cost carrier with its partially owned subsidiary Nok.

Patee said that the board now decided to take the planned fourth ultra low-cost brand "out of the matrix".

THAI, which is currently looking for a new president following the departure of Piyasvasti Amranand in Jun-2012, "is trying to focus more on their own products," Patee explained. That leaves Nok Air on its own to fill the THAI’s gap in the budget end of the regional international market.

-- The Nation 2012-07-26

[KarstenBoAndersen]

Could they just make a better service out of Khon Khaen !

This big airport for nothing !

Thai Airways competed Air Asia out (for taxpayers money) for raising their prices very much soon after !

In Europe Thai Airways would had been sued for that !!

But this is AMAZING THAILAND !!!!

[GentlemanJim]

Perhaps the Boards of Directors in Thailand should do all of their studies BEFORE they announce that big expansions will occur. I bet moral with the employees must by sky high....not!

[uptheos]

What a surprise!

[Thai at Heart]

Decided very recently.

Thanks for the public announcement.

[Thailand]

Thai

[ginjag]

Maybe the CEO just had an brainwave--they would have to buy aircraft to launch a new airline---oooops --"we are strapped for cash-just looked at the books". Better they privatise Thai, stop the hangers on from getting perks,

[Ricardo]

That leaves Nok-Air on its own to fill the THAI's gap in the budget end of the regional international market.

Wasn't that supposed to be why 'Thai Smile' was being set up ?

The words piss-up, brewery & couldn't organise really do spring to mind !

[Stjohnm]

THAI and low cost do not belong in the same sentence.

Sent from my iPad using ThaiVisa app

[SantiSuk]

CEO changed recently didnt he?

Not unusual to have change of strategy in such circumstances (assuming there is a new one already).

Probly a good idea anyway. Even some of the national carriers are getting involved in the race to the bottom on price. Middle East carriers, intent on owning the west-bound routes out of Bangkok, will kill the finances of anyone intending building a low cost business in that direction.

Edited July 27, 2012 by SantiSuk

[Payboy]

Thai Airways Drops Low Cost Carrier Plan

Sticking to high-cost low-service strategy then?

[xylophone]

Could never understand the potential move to start "Thai Smile" when they already had an existing airline (Nok) set up and ready to expand/move into the "budget travel" arena.

Agree with the comment re; piss up, brewery and couldn't organise being relevant.

[phiphidon]

Maybe the CEO just had an brainwave--they would have to buy aircraft to launch a new airline---oooops --"we are strapped for cash-just looked at the books". Better they privatise Thai, stop the hangers on from getting perks,

Maybe thats why they just got rid of him after his "lack of communication" with the board?

[ginjag]

Maybe the CEO just had an brainwave--they would have to buy aircraft to launch a new airline---oooops --"we are strapped for cash-just looked at the books". Better they privatise Thai, stop the hangers on from getting perks,

Maybe thats why they just got rid of him after his "lack of communication" with the board?

Question though-What the hell has the board or anyone done to get Thai back up to the level they once were??? and with the high prices where is the money filtered off to ??? The high prices for a bad out of date service tells me that there must be too many perks-handouts-fingers in the pie. Instead of getting a new fleet of aircraft that are more economical and then compete with the likes of Emirates/Ethihad/Eva. For a long time over several CEO's-it's no different. I say privatise it, get some money in for schools and hospitals and Elderly.

[spidermike007]

Thai Air is right up there with Bangkok Airways, in terms of making an effort to charge as much money as possible, on every one of their routes. Due to the upcoming construction of the Don Sak International Airport, Bangkok Air is currently milking the Samui route for every baht they can get, and continue to charge extortionate prices for this route. Thai Air is much the same. Every time I compare them to EVA, or comparable airlines, on the same routes, their prices are 25% to 50% higher. It seems like they are going out of their way to avoid being competitive on pricing. What kind of model is that? Would they do the same thing if they were privately owned?

[belg]

kick the low cost competition to the older airport and the need for competitive prices and services at swampie flies out of the window

[ginjag]

Thai Air is right up there with Bangkok Airways, in terms of making an effort to charge as much money as possible, on every one of their routes. Due to the upcoming construction of the Don Sak International Airport, Bangkok Air is currently milking the Samui route for every baht they can get, and continue to charge extortionate prices for this route. Thai Air is much the same. Every time I compare them to EVA, or comparable airlines, on the same routes, their prices are 25% to 50% higher. It seems like they are going out of their way to avoid being competitive on pricing. What kind of model is that? Would they do the same thing if they were privately owned?

My Idea is no they wouldn't, Thai business is to make as much as possible, BUT to do that they would have to be competitive. Thai is more or less government--and being that they are no different from most departments---greed--money-perks-vip attention for lesser ranks, as I said where has the money gone from the high prices over the last few years???

[Payboy]

kick the low cost competition to the older airport and the need for competitive prices and services at swampie flies out of the window

Unless the older airport proves to be more efficient and convenient than the new one.

[h90]

Perhaps the Boards of Directors in Thailand should do all of their studies BEFORE they announce that big expansions will occur. I bet moral with the employees must by sky high....not!

Thaksin is partially owner of Air Asia.....Why do you think he changed the management to people who will follow him?

There is no business in Thailand where he don't mess around....

[ginjag]

Perhaps the Boards of Directors in Thailand should do all of their studies BEFORE they announce that big expansions will occur. I bet moral with the employees must by sky high....not!

Thaksin is partially owner of Air Asia.....Why do you think he changed the management to people who will follow him?

There is no business in Thailand where he don't mess around....

If he is still part owner, and being only a part owner doe's not auto give him the right to dictate to management. He tries to get his fingers in most pies-and tills, that doe'snt make him that god like or he would fly in tomorrow. He is a fool to think he can BUY anything thats on offer, and therefore influence that. The tide is turning and he is stupid enough to still mess around.

[TallGuyJohninBKK]

I feel very reassured and relieved now... knowing that THAI Air will certainly continued in its prized role as a HIGH cost, LOW service carrier... They had me worried there for a bit..

[tombkk]

Perhaps the Boards of Directors in Thailand should do all of their studies BEFORE they announce that big expansions will occur. I bet moral with the employees must by sky high....not!

Thaksin is partially owner of Air Asia.....Why do you think he changed the management to people who will follow him?

There is no business in Thailand where he don't mess around....

Is he really a part owner of Air Asia? Please provide evidence (web link will do).

[473geo]

Well guys I accepted a ticket price on Thai through an agent that was lower than the price I could get on the Eva site........

Just lucky I guess, because I don't feel for a direct flight it is expensive, and I enjoy the food..flight times are perfect for me too.

[hellodolly]

Well guys I accepted a ticket price on Thai through an agent that was lower than the price I could get on the Eva site........

Just lucky I guess, because I don't feel for a direct flight it is expensive, and I enjoy the food..flight times are perfect for me too.

That tells us nothing.

Most travelers already know that their are deals you can get that are not on the web sites.

Now if you had said the agent could get for the same days that would be meaningful. Last time I went to Bali I got a better price from a agent for Singapore air than I could have got on the air Asia site. My travel agent does not handle Air Asia but I am sure I could have walked down the street and got the same price if not higher than what there web site said.

There is always deals to be had if you check with the travel agents and are a little flexable. Some times you don't have to be flexible.

If Thai air was cheaper that was because for once they priced it for what it was worth. Most of the time they over charge.

[473geo]

Same day almost identical flight times, very simple, I tried to book an Eva promotion but it closed 3 days before I wanted to return, so I checked Thai. they were cheaper on the day with an agent I used previously but not for a while. I quite enjoy flying Thai these days, there are plenty of alternatives for the the more 'demanding' fliers.

Edit: Just to add I was very impressed with the personal attention I received from Nok Air when my flights were cancelled due to the flooding. They provided regular updates in what proved to be very difficult circumstances for their staff. They also refunded my tickets with pleasant and informative communication. I have also always enjoyed my flights with them, a quality outfit in my opinion.

Edited July 29, 2012 by 473geo