TG rethinks Euro services
February 13, 2012 by Rapeepat Mantanarat
Filed under Aviation, News
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BANGKOK, 13 February 2012: Thai Airways International will be advising travel planners attending the ITB this year about cuts to European flights.
Due to the Eurozone crisis and the loss of spending power across the EU, the airline has reduces frequencies and there are also some changes in aircraft type. It is a response to a steady decline in spending power and fiscal failure across a region that was once a major source of income for the Thai national airline.
Other airlines are in a bind too and it is expected that some major players will further reduce flights on Europe-Bangkok routes.
Flight changes include:
From 1 August, Boeing 747s that have been going through the retrofit programme will go into service to upgrade in-flight products on Frankfurt, Madrid and Rome routes.
Frankfurt will get a fully retrofitted B747, instead of only an economy retrofitted one, while Madrid and Rome will operate with a mix of both partly retrofitted and fully retrofitted. It means economy class passengers will have personal screen on all services by October this year.
There are 20 aircraft going through a retrofit programme.
Four were ready last year and 16 are due to be completed this year. The flood from late October through to the beginning of December delayed retrofits at the airline’s technical department located at Don Mueang Airport.
From this year, THAI’s in-flight products should improve significantly as the retrofitted aircraft are entering services and new aircraft will be delivered.
The airline will take delivery of four Airbus A330 this year; B777-300ER roll out from late this year (two out of a total eight). The first of six double-decker A380s will join the fleet in September and start serving Frankfurt, 1 December.
AT ITB, the airline will showcase first and business class demo seats that will be fitted in the A380 aircraft. In THAI’s configuration, the number of seats is set at 507 in three classes —12 first class seats, 60 in business and 435 in economy.
The first class cabin will feature compartment-style seats with a Royal First lounge, a multi-purpose area and a Royal First class bar.
Business class, or Royal Silk, will also have its own bar and seats will be flat -bed style and installed in a staggered layout for direct aisle access.
At ITB, the airline will also promote its Thai Smile, a light premium sub-brand designed to compete in the no-frills segment.
Thai Smile will launch services, 1 July, beginning with flights to Macau. Flights to Jakarta, Phnom Penh and Kolkata will follow. A service linking Chiang Mai-Phuket is the pipeline possibly to follow in its second year.
Thai Smile’s other regional destinations are likely to include cities in China, India and ASEAN all within a four-hour flight range. It will replace THAI on some of routes that have not been profitable for the full-service airline.
In the original plan, it was supposed to kick off with domestic operations, but has tweaked its strategy to emphasise mainly regional links, while reducing domestic operations to just 20% of system capacity, down from an earlier 50%.
One consideration was THAI’s 49% financial stake (increased from 39% in October) in Nok Air, which concentrates solely on domestic routes from its Don Mueang Airport base. THAI has shifted its strategy to avoid market confusion, so that THAI and Nok Air can cover domestic services side-by-side without openly competing.
Thai Smile has already got Cabinet approval to order 11 Airbus A320, which will roll out from June until 2015.
But to catch up with growing competition, Thai Smile needs more aircraft to operate its business model efficiently. Subject to approval, the company will obtain additional aircraft during 2013 and 2014, but leased rather than purchased to shorten the lead-time between orders and delivery.
According to the delivery plan, the first A320 aircraft will arrive in June; the second and third in August and the fourth in September. In 2013 and 2014, two aircraft will join the fleet each year and the last three are due in 2015.
This will limit the airline’s ability to add destinations quickly in the initial three years and is reflected in a low estimate of just 300,000 passengers a year in 2012. But by 2013 the airline claims it could carry 1 million passengers earning Bt5 billion revenue.