THAI to downsize fleet by more than 24 in 2016

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THAI
THAI to downsize fleet by more than 24 in 2016
SUCHAT SRITAMA
The Nation

BANGKOK: -- Ailing Thai Airways International plans to downsize its fleet by more than 24 aircraft by next year and focus more on maintenance services to extract more revenue from non-core businesses.

Charamporn Chotikasthira, president of THAI, said yesterday that the board of directors on Monday approved a plan to sell eight more aircraft, of which half are Boeing 737 and half Boeing 747 models.

The flag carrier also plans to sell eight more aircraft in the second half of this year. Planes to be put on the market are Boeing 747 and Airbus A340 models. The proposal will soon reach the board for approval.

The airline also hopes to sell eight more planes next year.

The national airline has planned to dispose of 42 aircraft from 2015-16 as part of its business recovery and restructuring plans. Since the beginning of this year, it has already unloaded 18 aircraft.

Besides selling old aircraft to generate cash, the airline will focus on expanding maintenance work, services and overhauling to more customers. Besides THAI's fleet, the maintenance unit is now servicing THAI Smile and Nok Air.

"The airline business is growing fast, especially with Don Mueang International Airport reopening this year. And we still have 12 hours each day to serve other airlines, which will help increase revenue," Charamporn said.

Next week, the airline will finalise its early-retirement plan and offer it to staff. The plan is part of cost-cutting measures initiated to restore finances and also revive business that has been struggling for several years.

The airline has earmarked Bt5.5 billion for early-retirement packages and other headcount reductions.

Meanwhile, passengers are coming back, Charamporn said. There were 20 per cent more of them during the first five months of this year than during the same period last year. This reflected the surge in arrivals from China, while the European market remained slow because of economic problems in that part of the world.

THAI realised a second-quarter average load factor of less than 70 per cent, which is still under the target.

"We will learn from other airlines how they can achieve a 70-plus-per-cent load factor despite the same low season. However, foreign-passenger numbers are expected to jump in the coming high season," he said.

Regarding the current outbreak of the Middle East respiratory syndrome, Charamporn said the airline still had seen no signs of difficulty from the epidemic, as Thailand is a third country and not directly involved in the disease.

THAI is operating the usual six flights per day to South Korea. The airline is applying intensive prevention measures against Mers.

The airline also claimed that it met international standards including for air safety and security despite other airlines as well as the Civil Aviation Department coming under pressure from the International Civil Aviation Organisation to improve safety.

Source: http://www.nationmultimedia.com/business/THAI-to-downsize-fleet-by-more-than-24-in-2016-30262440.html

-- The Nation 2015-06-17

[Ricardo]

"Besides THAI's fleet, the maintenance unit is now servicing THAI Smile and Nok Air."

Weren't THAI already servicing associated-company Nok's planes ?

"We will learn from other airlines how they can achieve a 70-plus-per-cent load factor despite the same low season."

But just how will THAI do that, without hiring-in foreign expertise, what new learning-technique have they recently discovered but not yet applied ?

And surely THAI's long-haul farang markets should peak in the northern winter, because Thailand is a popular winter-sun destination, so their low-season ought to be the opposite of the northern-summer busy-season, opening-up opportunities to boost aircraft-utilisation by short-leasing out their spare capacity May-September ?

"Planes to be put on the market are Boeing 747 and Airbus A340 models. The proposal will soon reach the board for approval."

How many times does that make it, that they've resolved to off-load the unwanted A340s ?

[ezzra]

Downsize fleet and personal by 50% and they still be 50% over staffed and over equipment,

don't go far Thai, just look at MAS next door....but will they heed the advice? Noooo, why?

it's not their money, it's the government's money, and since when Thai government

ever gave a hoot about their money?

[zaphod reborn]

Good luck offloading those decrepit aircraft. They are only good for scrap metal and parts at this stage of their life.

[Orac]

Impressed to see that 20℅ increase in passengers from the first five months of last year given the huge boost they had in that period from Sutheps street party.

[Sydebolle]

Air Asia gets two passengers from Don Meuang to Chiang Mai for THB 2'232, this includes 20kgs of luggage per passenger - no meal.
Thai Airways gets two passengers from Suvannaphoumit to Chiang Mai for THB 3'400, this includes 30kgs of luggage per passenger - snack out of a smelly cardboard box.

So, why is it, that Air Asia flies for years without moaning, struggling and completely overloaded incompetent company board while Thai Airways might be considered bankrupt by non-Thai standards.

The best value-for-money seems to be Bangkok Airways, THB 2'900 including 20kgs of luggage, a yummy snack, a friendly crew and very, very reliable. More than once they had to reshuffle operationally for whatever reasons, communicated perfectly and found solutions which were more than perfect alternatives.

Thai Airways, a perfect product 25 years ago when the passenger had no choice (all those other airlines did not exist then), should get back to the drawing board, fly other airlines and understand, that the passengers have the choice and - in Thai's case - tend to vote with their feet.

Above is domestic; long-haul is even worse, much worse, and will not be fixed with selling assets off :-(

[Srikcir]

Rather than downsizing the fleet, just sell the whole airlilnes to a competent operator.

That gets the Thai government out of the airline business so it can quit losing taxpayer's money and focus on meeting international airline regulations.

[geriatrickid]

Air Asia gets two passengers from Don Meuang to Chiang Mai for THB 2'232, this includes 20kgs of luggage per passenger - no meal.

Thai Airways gets two passengers from Suvannaphoumit to Chiang Mai for THB 3'400, this includes 30kgs of luggage per passenger - snack out of a smelly cardboard box.

So, why is it, that Air Asia flies for years without moaning, struggling and completely overloaded incompetent company board while Thai Airways might be considered bankrupt by non-Thai standards.

The best value-for-money seems to be Bangkok Airways, THB 2'900 including 20kgs of luggage, a yummy snack, a friendly crew and very, very reliable. More than once they had to reshuffle operationally for whatever reasons, communicated perfectly and found solutions which were more than perfect alternatives.

Thai Airways, a perfect product 25 years ago when the passenger had no choice (all those other airlines did not exist then), should get back to the drawing board, fly other airlines and understand, that the passengers have the choice and - in Thai's case - tend to vote with their feet.

Above is domestic; long-haul is even worse, much worse, and will not be fixed with selling assets off :-(

If you want to compare airfares, don't pick dates where the TG fares might be highest.

How about picking something in July? I see multiple flights from BKK at 1400 Baht on July 18.

Based upon your logic, everyone else is a rip off.

I have flown Bangkok Airways in peak period and it is a mess. Long line ups, poor service and checkin kiosks that don't work. The airline is over priced.

I flew TG exclusively when it has J class. Now most of it is Thai Smile and I would rather go to DMK and fly Nok.

Anyway, your argument is years out of date. The launch of Thai Smile change the airfare structure.

[geriatrickid]

Rather than downsizing the fleet, just sell the whole airlilnes to a competent operator.

That gets the Thai government out of the airline business so it can quit losing taxpayer's money and focus on meeting international airline regulations.

Can't. Ownership rules. Thailand isn't alone in this.

E.g. China, Japan, Brazil, India, South Korea, USA, Russia, Canada, Australia, Israel all have ownership restrictions.

[Strangebrew]

Want butts in seats I would think lowering airfares to market rate might be astep in right direction. But this is Thailand so I might be wrong.

[Strangebrew]

Want butts in seats I would think lowering airfares to market rate might be astep in right direction. But this is Thailand so I might be wrong.

[Cpkt8]

Will increased workload of the maintenance workers results in shoddy maintenance checks? I hope Thai will not overlook the safety part.

[Jimlove]

Air Asia gets two passengers from Don Meuang to Chiang Mai for THB 2'232, this includes 20kgs of luggage per passenger - no meal.

Thai Airways gets two passengers from Suvannaphoumit to Chiang Mai for THB 3'400, this includes 30kgs of luggage per passenger - snack out of a smelly cardboard box.

So, why is it, that Air Asia flies for years without moaning, struggling and completely overloaded incompetent company board while Thai Airways might be considered bankrupt by non-Thai standards.

The best value-for-money seems to be Bangkok Airways, THB 2'900 including 20kgs of luggage, a yummy snack, a friendly crew and very, very reliable. More than once they had to reshuffle operationally for whatever reasons, communicated perfectly and found solutions which were more than perfect alternatives.

Thai Airways, a perfect product 25 years ago when the passenger had no choice (all those other airlines did not exist then), should get back to the drawing board, fly other airlines and understand, that the passengers have the choice and - in Thai's case - tend to vote with their feet.

Above is domestic; long-haul is even worse, much worse, and will not be fixed with selling assets off :-(

If you want to compare airfares, don't pick dates where the TG fares might be highest.

How about picking something in July? I see multiple flights from BKK at 1400 Baht on July 18.

Based upon your logic, everyone else is a rip off.

I have flown Bangkok Airways in peak period and it is a mess. Long line ups, poor service and checkin kiosks that don't work. The airline is over priced.

I flew TG exclusively when it has J class. Now most of it is Thai Smile and I would rather go to DMK and fly Nok.

Anyway, your argument is years out of date. The launch of Thai Smile change the airfare structure.

All thai carriers are overpriced just like most other products in Thailand ... Try to check Vietjet for a flight from HCMC to Da Nang - Price is about 40% lower for longer distance as BKK to CNX ie.

Thai Airways is dying and everybody can almost taste the desperation in that failing Company ...

Edited June 17, 2015 by Jimlove

[Anon999]

Air Asia gets two passengers from Don Meuang to Chiang Mai for THB 2'232, this includes 20kgs of luggage per passenger - no meal.

Thai Airways gets two passengers from Suvannaphoumit to Chiang Mai for THB 3'400, this includes 30kgs of luggage per passenger - snack out of a smelly cardboard box.

So, why is it, that Air Asia flies for years without moaning, struggling and completely overloaded incompetent company board while Thai Airways might be considered bankrupt by non-Thai standards.

The best value-for-money seems to be Bangkok Airways, THB 2'900 including 20kgs of luggage, a yummy snack, a friendly crew and very, very reliable. More than once they had to reshuffle operationally for whatever reasons, communicated perfectly and found solutions which were more than perfect alternatives.

Thai Airways, a perfect product 25 years ago when the passenger had no choice (all those other airlines did not exist then), should get back to the drawing board, fly other airlines and understand, that the passengers have the choice and - in Thai's case - tend to vote with their feet.

Above is domestic; long-haul is even worse, much worse, and will not be fixed with selling assets off :-(

If you want to compare airfares, don't pick dates where the TG fares might be highest.

How about picking something in July? I see multiple flights from BKK at 1400 Baht on July 18.

Based upon your logic, everyone else is a rip off.

I have flown Bangkok Airways in peak period and it is a mess. Long line ups, poor service and checkin kiosks that don't work. The airline is over priced.

I flew TG exclusively when it has J class. Now most of it is Thai Smile and I would rather go to DMK and fly Nok.

Anyway, your argument is years out of date. The launch of Thai Smile change the airfare structure.

Fly Nok! They are often late departing, also have a habit of cancelling flights and use the SAAB turboprop aircraft although that's no a problem but it limits the number of passengers significantly. Air Asia tend to leave on time or 2 minutes early and use the Airbus A320 which has been nearly full when I've used it.

[heybuz]

i'm no expert but wouldn't standardising their fleet save money .eg all boeing or all airbus

[Sydebolle]

Air Asia gets two passengers from Don Meuang to Chiang Mai for THB 2'232, this includes 20kgs of luggage per passenger - no meal.

Thai Airways gets two passengers from Suvannaphoumit to Chiang Mai for THB 3'400, this includes 30kgs of luggage per passenger - snack out of a smelly cardboard box.

So, why is it, that Air Asia flies for years without moaning, struggling and completely overloaded incompetent company board while Thai Airways might be considered bankrupt by non-Thai standards.

The best value-for-money seems to be Bangkok Airways, THB 2'900 including 20kgs of luggage, a yummy snack, a friendly crew and very, very reliable. More than once they had to reshuffle operationally for whatever reasons, communicated perfectly and found solutions which were more than perfect alternatives.

Thai Airways, a perfect product 25 years ago when the passenger had no choice (all those other airlines did not exist then), should get back to the drawing board, fly other airlines and understand, that the passengers have the choice and - in Thai's case - tend to vote with their feet.

Above is domestic; long-haul is even worse, much worse, and will not be fixed with selling assets off :-(

If you want to compare airfares, don't pick dates where the TG fares might be highest.

How about picking something in July? I see multiple flights from BKK at 1400 Baht on July 18.

Based upon your logic, everyone else is a rip off.

I have flown Bangkok Airways in peak period and it is a mess. Long line ups, poor service and checkin kiosks that don't work. The airline is over priced.

I flew TG exclusively when it has J class. Now most of it is Thai Smile and I would rather go to DMK and fly Nok.

Anyway, your argument is years out of date. The launch of Thai Smile change the airfare structure.

With all due respect, I compare apples with apples and chose June 30th, 2015 for the fare/service comparison. Thai Smile competes TG like Leo does Singha beer. If you cannot beat them then join them but TG is a pathetic dinosaur in Thai's aviation and has gone down the drain ever since Chatichai Bunya-Ananda had left the company. Too many leeches eventually suck the host dry .........