Thai Rejuggles Routes

[george]

THAI rejuggles routes

BANGKOK: Thai Airways International Plc is overhauling its flight network, reducing loss-making flights to Geneva, Paris and the Americas and sending more passengers along the London, Frankfurt, Japan and Asian routes.

Suthep Suebsantiwong, Wallop Bhukkanasut and Chaiwat Chanaphai of the national carrier's commercial department yesterday outlined the new marketing strategy, which would consist of adjusting flight operations to maximise profits.

In the first quarter (October-December) of its fiscal year, THAI saw 20-per-cent growth in operations due to adjustments in market strategies that began late last year, Suthep said.

"We're trying to reduce the losses resulting from operations along about 20 routes and to increase the routes that are more profitable," he said.

Several routes are such a financial drain that the airline plans to dispense with them completely. As reported earlier, the Bangkok-Narita-Los Angeles route that departs and arrives four times a week will be terminated this week. However, THAI will keep the Bangkok-Osaka-Los Angeles route at three flights a week. It will also increase flight operations between Bangkok and Tokyo from 18 flights to 21 flights per week.

US routes had lost the carrier Bt700 million last year, Suthep said.

Bangkok-Zurich-Geneva flights will be cancelled, while flights to Paris will be cut back from 13 to seven a week. THAI will increase operations along more profitable routes such as to London, from 12 to 13 flights per week, and Munich, from four to five a week.

Milan and Moscow are new destinations.

Wallop said the Milan route would start with two flights a week at the end of this month, while frequencies on the Moscow route are still being considered.

In Asia, THAI will inaugurate four flights a week to Bangalore on March 29.

The airline will also supplement service to Yunnan, by starting twice-weekly flights to Jihong City in the Xi Shuang Banna Dai (Tai) Autonomous Prefecture (Sipsong panna in Thai) or land of the 12,000 rice fields in Southern China. The area is reputed to be the one of the origins of the Tai speaking peoples.

"We posted net profit of Bt18 billion last year. This year we plan to increase profits by another Bt2 billion," Wallop said.

--The Nation 2004-03-12

[ovenman]

Several routes are such a financial drain that the airline plans to dispense with them completely. As reported earlier, the Bangkok-Narita-Los Angeles route that departs and arrives four times a week will be terminated this week. However, THAI will keep the Bangkok-Osaka-Los Angeles route at three flights a week. It will also increase flight operations between Bangkok and Tokyo from 18 flights to 21 flights per week.

US routes had lost the carrier Bt700 million last year, Suthep said.

I'll accept that at face value but then at the same time there is also talk of THAI adding a non-stop BKK-New York flight as well as the possibility of a non-stop BKK-Los Angeles route.

[sbk]

Perhaps if their prices were more competive and their service better they might find they had more customers. Why fly expensive Thai when Singapore Airlines is cheaper and better?