Thai Airways Scraps Plan For New Low-cost Carrier

[george]

THAI scraps plan for new low-cost carrier

CHIANG RAI: -- The Board of Directors of Thailand's national carrier Thai Airways International (THAI) approved the scrap of a plan to set up another low-cost subsidiary.

Instead of setting up another subsidiary (to have been called Royal Orchid Airlines), THAI will instead plan to compete directly with low-cost carriers, considering that it is already a major shareholder in Nok Air, a domestic low-cost carrier, according to the national carrier's president, Apinan Sumanaseranee.

Speaking to reporters after the Board meeting, Mr. Apinan said another low-cost airline is unnecessary as THAI owns 39 per cent of Nok Air.

In addition, once Suvarnabhumi International Airport opens in September 28, it will become an aviation hub accommodating many charter carriers.

With these considerations, Permanent Secretary for Transport Wanchai Sarathuntat, who chairs the

THAI board, acknowledged and approved the decision.

The plan for THAI to form an added budget subsidiary was initiated by caretaker Transport Minister Pongsak Raktapongpaisal who thought that THAI should optimise business opportunities with the potential of the Suvarnabhumi Airport.

Mr.Wanchai said THAI is now devising new strategies on staying competitive against the low-cost carrier sector by expanding more options via internet booking.

--TNA 2006-07-09

[astral]

When you are already in a business it does not make sense to go into

completion with yourself.

[Chang_paarp]

See the Thai board can make a sensible decision based on good economic information.

[Rinrada]

Just read a snippet this morning concerning a decision by the Malaysian Government to allow their national carrier Malaysian Airlines to start offering cheap price domestic fares.(region)

Seems they are worried about Air Asia making too much of and advance in the home market and intend to complete.

Shades of Genting Hightlands Baby Tiger specials at 50 Rmb fom KL..... keep em coming....

[ovenman]

Just read a snippet this morning concerning a decision by the Malaysian Government to allow their national carrier Malaysian Airlines to start offering cheap price domestic fares.(region)

Didn't Malaysia Airlines just give a whole bunch of their domestic routes to AirAsia because MAS couldn't make those routes profitable?

[Rinrada]

Yes......now they are... and dont want to play the game....

[terry57]

Just read a snippet this morning concerning a decision by the Malaysian Government to allow their national carrier Malaysian Airlines to start offering cheap price domestic fares.(region)

Seems they are worried about Air Asia making too much of and advance in the home market and intend to complete.

Shades of Genting Hightlands Baby Tiger specials at 50 Rmb fom KL..... keep em coming....

they want to be good to give air asia a run for there money as A A has really got established over there.

ive flown with them heaps of times and they always deliver the goods at rock bottom prices .

made a flight this year bangkok to singapore for $ 45 aud all up. it was special but if your flexable your laughing as they throw them out all the time.

another top bonus is that the hostesses are gorgeous so that also makes life happy.

this month i fly kl to kuching for $42aud so the giggles keep on coming.

secret for the real cheap seats is to book well in advance and you nearly fly for free.

just like macdonalds " IM LOVING IT " BUT I DONT LOVE MACDONALDS AS ITS <deleted>.

cheers

[ovenman]

Mr.Wanchai said THAI is now devising new strategies on staying competitive against the low-cost carrier sector by expanding more options via internet booking.

The only option THAI needs to expand to remain competitive against the low-cost airlines (if this is truly even a concern of theirs) is to offer discounted pricing for advance purchase tickets on domestic routes.

I couldn't figure out why TG was even considering setting up another low-cost subsidiary when they made the announcement months ago, considering they already have Nok Air.

[lingling]

I couldn't figure out why TG was even considering setting up another low-cost subsidiary when they made the announcement months ago, considering they already have Nok Air.

My guess is that some people at TG are jealous and pissed off at the ex-TG people running Nok for

a) not giving them enough power

...and...

pulling off stuff that TG can't seem to do (high aircraft utilization, "new" sales channels such as the intarweb etc)

...so the jealous/pissed off bunch over at TG HQ probably decided that they want their own LCC. Like a bunch of three year olds fighting over toys.