Bangkok--15 Mar--Thai Airways International
Thai Airways International Public Company Limited clarified media reports that the company had suspended some of its routes flown for Thai Air Asia, as the company does not have any policy to suspend routes to the benefit of other airlines.
Mr. Vasing Kittikul, Executive Vice President for Commercial, Thai Airways Public Company Limited, said that the company currently competes with commercial airlines internationally and domestically as part of the open skies policy. As well, due to the economic situation and high cost of jet fuel, THAI continuously adjusts its corporate strategy for increased competitiveness. The company conducts regular analysis on its financial results and has a policy to reduce flight capacity for loss making routes and conduct aircraft rotation to increase aircraft utilization on profit making routes. Therefore, media reports stating that the company had suspended its routes was false, such as the route Hong Kong — Taipei — Bangkok or Bangkok — Singapore, as there was decreased passenger capacity and several airlines compete for traffic during the same flight time. THAI hereby clarifies that the company has not suspended any flight to the benefit of any other airline.
In addition to competitive corporate strategy, THAI also cooperates with various airlines to facilitate passenger travel, such as implementation of code share flights with other airlines on specific routes, utilizing aircraft type based on flight sector and passenger market, on routes where there is high passenger traffic. Code share agreements with other airlines enables THAI to better serve passengers, increasing profitability and decreasing the company’s fuel cost expenses.
During this period where there are demonstrations being held, there has been no effect on passenger arrivals to Thailand. At the moment, the cabin factor during October 2005 — February 2006 has improved compared to the same period last year. In particular, the company experience superior cabin factor during January — February at approximately 80 percent, with bookings performing better than last year. When compared to year 2005, bookings increased substantially especially on European routes by approximately 5-7 percent. It is anticipated that there will be no situation that will effect tourism.
Furthermore, Mr. Kittikul said that most recently THAI was highly success in its promotional booth at ITB Berlin 2006 in Berlin, Germany, during 8-12 March, whereby THAI and the Tourism Authority of Thailand’s (TAT) booths were of high interest to exhibition visitors.