Thai Airways International projects Bt200 bn

[webfact]

THAI
Thai Airways projects Bt200 bn
Bamrung Amnatcharoenrit
The Nation

BANGKOK: -- Thai Airways International will maintain its sales projection this year at Bt200 billion and targets earnings before interest, taxes, depreciation and amortisation (EBITDA) of at least Bt20 billion while a political cloud still hangs over its business performance.

Currently, the national carrier is feeling a pinch from the political chaos plaguing the country. Although last month was still high season, its cabin factor was 70-72 per cent, down from 78 per cent in January 2012. First-quarter cabin factor is projected to average 72 per cent.

For the whole year, its cabin factor is projected to stay at 74-76 per cent.

Chokchai Panyayong, THAI senior executive vice president (commercial) and acting president, declined to reveal its net-profit projection for this year, but said the carrier would have to wait and see if business performance in the second half improved enough to offset a disappointing scenario.

In the first nine months of last year, the firm posted a total loss of Bt6.35 billion.

He said the airline would have to cut flight frequencies on some routes in the second quarter, which is the low season.

Cabin factor is projected to stay around 70 per cent next quarter.

Since October, passenger numbers have dropped by about 20 per cent from a year earlier. The Chinese market, including Hong Kong, has been hit hard with a drop of 30 per cent, he said.

Clearly, Chinese people are sensitive to the political chaos, especially once a state of emergency was declared in Bangkok. But even before the protests started, legislation took effect in the mainland on October 1 to curb zero-dollar outbound tours, another key factor to slow down the flow of Chinese tourists into Thailand.

Yesterday, THAI announced the official launch of on-board wireless Internet (Wi-Fi) service. It is the first airline in Thailand to do so and only the fifth or sixth in Asia.

It is available on its six Airbus A380-800 aircraft, which fly to Paris, Frankfurt, Osaka, Hong Kong and Tokyo, and also its seven Airbus A330-300s flying to Perth, Taipei, Shanghai, Hong Kong and Osaka.

The 20 aircraft it is taking delivery of between now and 2017 will also offer Wi-Fi service.

Chokchai denied THAI's Wi-Fi service was costly when compared with other airlines, but said its rates were competitive.

For example, its 3-megabyte package for smartphones costs US$4.50 (Bt145), with 10MB available for $14.50. For laptops and tablets, its 10MB package also costs $14.50, with 20 MB available for $28.50.

GSM mobile phone service will be launched once legislation permits it.


-- The Nation 2014-02-18

[ChrisY1]

Privatising will be the only way for Thai to ever become profitable now......too many cooks trying to run this show....and none too smart

[chainarong]

Thai have notified Airports Australia / Perth, that they intend this year to start flying the 787 on the Per / BKK sector.

[NongKhaiKid]

I wonder if Thai is basing their projections on certain people and their entourages fleeing the country ?

[rogerdee123]

This projection may come true if the Baht is devalued by about 80% .... which could happen if the Gvt continues looting the finances and balance sheet.

[JoeThePoster]

20 beeellion? It must be all from the wi-fi and smartphone packages.

[rreddin]

I wonder if Thai is basing their projections on certain people and their entourages fleeing the country ?

I very much doubt it. People as wealthy as those you have in mind can charter their own aircraft and I doubt they would fly Thai. Of course, Thai Airways would be in profit if the civil servants and politicians paid for their flights and all those Hi So's with vast amounts of excess baggage actually paid for it. But silly me, all they will do is put up their prices and do a bit more route sharing as they are currently doing on one flight a day to London - an indirect flight sold as a direct flight and charged accordingly.

[webfact]

Thai Airways’ passenger load plunges 30%
By Digital Content



BANGKOK, Feb 18 – Thai Airways International (THAI), Thailand’s flag carrier, has reported a 30 per cent drop in passengers from October without any sign of recovery in the near future.

Chokchai Panyayong, THAI acting president, said the political impasse since October and China’s new regulation on zero-dollar tours have negatively impacted THAI performance.

The passenger load was 72 per cent last month and it will possibly fall to 70 per cent this month with a predicted Q1 passenger volume at 71-72 per cent and further real duction to 70 per cent in Q2, which is the annual low season, he said.

He said the recent bad weather in Japan had slightly affected and delayed THAI flights and revenue on the Thailand-Japan route.

THAI yesterday unveiled Thai Sky Connect, a wi-fi service on board six Airbus A380-800 flights--Bangkok to Paris, Frankfurt, Osaka, Hong Kong and Tokyo--and seven Airbus A330-300(33H) from Bangkok to Perth, Taipei, Shanghai, Hong Kong and Osaka. (MCOT online news)


-- TNA 2014-02-18

[kotsak]

Do you mean lousy sevice has nothing to do with it?

[Costas2008]

And it will fall further if you don't adjust your prices.

[SOTIRIOS]

...talk about giving half-*ssed information....

....last year they lost around 10B.....???

...is that why they are being so nebulous.....

...what point in stating...before this...before that....

..whatever happened to 'net'.......profit........or loss.....

[steelepulse]

Every year they predict a profit, yet every year it's a loss. Groundhog day all over again!

[chooka]

And it will fall further if you don't adjust your prices.

If passenger numbers have dropped 30% and they still want 200bn profit maybe the will have to double their prices.

[wpcoe]

Thai Airways’ passenger load plunges 30%

By Digital Content

The passenger load was 72 per cent last month and it will possibly fall to 70 per cent this month with a predicted Q1 passenger volume at 71-72 per cent and further real duction to 70 per cent in Q2, which is the annual low season, he said.

Headline does not compute, unless they previously had 100% to 102% load factors.

[bigbamboo]

At least they've finally accepted that old planes do not hold their value like old cars in Thailand. The rest is all pie in the sky though.

[shaurene]

Thai used to be my No: 1 to fly with, for 7 yrs 4-5 times a yr from New Zealand-BKK-Deli-BKK-Taiwan-BKK-Auckland this is going back to the 90s they were good then and competitive and miles were great. Now you book the lowest price you can get to BKK but no miles and it is $500 more than Qantas.

Thai have lost me never again with them on international. Their service has gone 3rd class.

[Just1Voice]

I flew them once. That was once too many

[Ricardo]

While TG blames new government-regulations, for their falling loads to/fro China, Air Asia Thailand keep adding new routes to China.

What a strange coincidence !

[Prbkk]

Good to see Finnair adding 3 extra flights per week Hel-BKK. They must have confidence the situation will be resolved. Good airline