April 201538

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AT the recent ITB in Germany, Thai Airways International (THAI) received another award, this time from Go Asia--a leading network of travel professionals in Berlin--as the second “Best Airline Asia.” The award highlights the continuing pursuit for excellence that THAI, the national � ag carrier of Thailand, has been carving a niche for since its formation. The present-day THAI began as a joint venture with Scandinavian Airlines (SAS) and Thailand’s then-domestic carrier, Thai Airways Company, in 1960. At the time, SAS held 30 percent of the joint venture, and provided operational, managerial, and marketing expertise. It also provided training assistance, aimed at building a fully independent national airline within the shortest possible time. The � rst revenue � ight commenced on May 1, 1960, when the company started � ying to nine overseas Asian destinations from Bangkok. By 1971, the carrier was ready for the � rst intercontinental services – Australia -- and then to Europe the following year (Services to North America commenced in 1980). The airline company became fully owned by the Thai government on April 1, 1977, after 17 years of capital participation by SAS, when the Thai government bought out the remaining 15% of SAS-owned shares. In 1988, Thai Airways International Public Company Limited (THAI) was formed, with corporate headquarters at Vibhavadi Rangsit Road, Bangkok. By 1987, Thai national have assumed full managerial responsibility and the numbers of expatriates in the staff based in Thailand was reduced to less than one percent. THAI is also a founding member of the Star Alliance, and is the largest shareholder of the low-cost carrier Nok Air (49%). In the middle of 2012, it launched a regional carrier under the name Thai Smile using a new Airbus A320 aircraft.

SMOOTH AS SILKDESPITE CONTINUING CHALLENGE IN THE AIRLINE INDUSTRY, THAILAND NATIONAL FLAG CARRIER IS DETERMINED TO GROW FROM STRENGTH TO STRENGTH.

Wide International Network, Modern Fleet But the airlines’ biggest business remains the international operations. From its hub at Suvarnabhumi Airport, THAI � ies to 78 destinations in 35 countries, using a � eet of more than 80 aircraft, with some of the most modern � eet in the world. The airline once operates two of the world’s longest non-stop routes between Bangkok and Los Angeles and New York City, but due to high fuel prices, the withdrawal of aircraft, luggage weight limits, and rising airfares, the airline abandoned all non-stop U.S. services in 2012. As of 2013, services between Bangkok and Los Angeles are served via Incheon International Airport near Seoul. THAI’s route network is dominated by � ights to Europe, East Asia, and South/Southwest Asia, though the airline serves Johannesburg in South Africa and � ve cities in Oceania. THAI was the first Asia-Pacific airline to serve London Heathrow Airport, and among Asia-Paci� c carriers, it has one of the largest passenger operations in Europe. THAI is currently an of� cial sponsor of Bangkok United and Red Bull Racing.

2000s Expansion In the 2000s, THAI aggressively pursued route network expansion by inaugurating new services to Chengdu, Busan, Chennai, Xiamen, Milan, Moscow, Islamabad, Hyderabad, Johannesburg, and Oslo. The 2000s also saw THAI expanding its route network beyond its Bangkok hub. The airline launched non-stop � ights from Phuket to Tokyo-Narita, Seoul-Incheon and Hong Kong. During the late 2000s, THAI’s aggressive growth was hampered by a combination of internal and external factors, including a spike in fuel prices, domestic political con� ict in Thailand, and the global economic crisis of the late 2000s. In 2002, Richard A. Kimball Jr. aided in the privatization of Thai Airways under Morgan Stanley. In 2006, THAI moved its hub operations to the new Suvarnabhumi International Airport, coinciding with the arrival of new aircraft during the mid-2000s, the airline launched a brand renewal by introducing a new aircraft livery, new aircraft seating, and revamped ground and air services. In 2008, after achieving pro� tability for the previous 40 years, THAI recorded a loss for the � rst time in its history at around THB 21 billion (US$675 million). The airline cited high fuel costs and Thailand’s political situation. As of Q2 2009, after a series of restructuring initiatives, including a two-year deferral of its Airbus A380 deliveries, the carrier returned to a net pro� t of THB 2.5 billion. It has since received its � rst A380s and commenced service to Hong Kong on 6 October 2012. While celebrating its 50-year anniversary in 2010, THAI, spearheaded by Piyasvasti Amranand, its president and a former energy minister, charted new plans for the airline’s future, including a signi� cant aircraft � eet renewal and an upgrade of existing services. THAI has since placed orders for a number of aircraft, including the cost-ef� cient Boeing 787 and Airbus A350, and it has also launched a refurbishment of its Boeing 747 and 777 cabins. Mindful of rising fuel costs, the airline have now phased-out the most inef� cient aircraft, including its Airbus A340-500s. The airline took delivery of its � rst Airbus A380 aircraft in the last half of 2012, intending to eventually deploy the aircraft on its core European routes.

THAI has also resumed its network expansion with the resumption of � ights to Brussels, in addition to a new non-stop � ight from Copenhagen to Phuket. At the same time, the Greek debt crisis caused THAI to suspend its services to Athens. As part of THAI’s broader growth strategy in the region, THAI launched a regional carrier with light-premium services, Thai Smile, which operate narrow-bodied Airbus A320-200 on regional and domestic routes. The new airline initiated commercial operations in July 2012, after its � rst A320s were received. THAI expects to be the � rst carrier in Asia to � y commercial � ights using biofuels. The carrier launched the initiative with experimental � ights in December 2011 as part of its Corporate Social Responsibility program, otherwise known as “Travel Green.” THAI hopes to stimulate sustained biofuel production in Thailand by working with Thai government agencies and regional corporate partners, such as PTT Public Company Limited. The effort aims to reduce carbon dioxide emissions in regional air travel as well as position Thailand to be the “bio hub” of Asia.

THAI today The latest news about THAI is that is planning to revamp its sales units in a bid to boost passenger numbers and generate more revenue. The plan was announced by THAI president Charamporn Jotikasthira recently at a THAI board meeting chaired by Areepong Bhoocha-oom, chairman of the board of directors and permanent secretary for energy. According to Charamporn, THAI will review the structure of its sales units — including working methods, equipment and computer systems. The restructuring could take between six and eight months. Targets for this year include increasing its cabin factor from 70% last year to 80% this year as other airlines have done. Cabin factor refers to the percentage of seats sold. Charamporn said the increase in cabin factor should boost revenue, adding that cheap tickets would also increase passenger numbers. Charamporn added that the company’s earnings from January to February are better than those of the same period last year when the country was embroiled in political protests. He also announced that during this month’s Songkran Festival, at least seven � ights would be added per day in the Phuket, Chiang Mai, and Krabi routes. With the additional � ights, the number of passengers is expected to increase by 4,000 daily. Other new developments: THAI plans to borrow THB15 billion this year to boost its liquidity and repay debts, and up to THB20 billion in 2016. Also, two more planes will be handed over to THAI soon, and another two will be delivered late this year.

Why Fly THAI In the true spirit of Thai hospitality, THAI continues to be recognized as one of the world’s best airlines today. In fact, we must mention that it also recently picked up the “Best Economy Class” award, from AirlineRatings.com. In citing THAI, Geoffrey Thomas, editor in chief of AirlineRatings.com said, “THAI offers some of the best value in Economy Class not only in the Asian region but throughout the airline industry. Their service is perfect, meals � lling and frequent and the in-� ight entertainment of superior quality. Thai Airways has always offered exceptional service, and the combination with cabin innovations of the Boeing 787 is a winning team.”

TAT AND AIRASIA INTRODUCE DISCOVER THAINESS AIRCRAFT AND PROMOTIONS BANGKOK – The Tourism Authority of Thailand (TAT) has entered into a co-branding partnership with one of the world’s largest low-cost carriers, Air Asia, in which the airline brand will see one of its aircraft with the logo of the “2015 Discover Thainess campaign,” as well as introduce a series of promotional airfares throughout the year. “The ‘2015 Discover Thainess’ campaign has kicked off to a good start since January, further af� rming the interests of local and international visitors who come to the kingdom to immerse themselves in the Thai way of life, Thai culture, and hands-on Thai experiences,’ says Thawatchai Arunyik, TAT governor. “The co-branding with Air Asia will give a signi� cant boost to Thailand’s tourism while the promotional airfares will help stimulate more travels among international travelers, especially from China and the neighboring countries.” Air Asia will brand its newest Airbus A320 aircraft with the royal barge Supannahong image – the logo of ‘2015 Discover Thainess ‘campaign. Also, its interior will be beautifully decorated with images of the “12 Hidden Gems,” the emerging promotional destinations as well as other Discover Thainess ads inviting all travelers to explore the charms of Thailand. To commemorate this partnership, Air Asia is offering a ‘Discover Thainess’ fare with prices starting from THB 590 for domestic destinations and THB 1,190 for international destinations.

The Tourism

NOKSCOOT STARTS OPERATIONS IN MAY NOKSCOOT (NokScoot Airlines Co., Ltd.) has announced that its scheduled low fare operations with Boeing 777-200s starting May 5. The � rst route connects the Bangkok (Don Mueang) base with Nanjing, China. The � rst route will be operated three days a week with a � ight schedule of four hours and 10 minutes. The second route -- Bangkok to Seoul (Incheon) – will begin � ve days later. This route will be operated daily. NokScoot is the joint venture between Singaporean budget airline, Scoot, and Thai airline, Nok Air.

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