Thai Airways (THAI) is looking to increase its market share at Bangkok Suvarnabhumi Airport and add interim aircraft capacity.
Before the global pandemic, Thai Airways had a 35% market share in Bangkok, which came below 20% during the pandemic. “That's too low for the home base hub carrier“, Thai Airways CEO Chai Eamsiri said at the IATA Annual General Meeting. “In the medium turn we have to bring it back at least to 30%-35% with additional wide-body capacity“, he said.
Bangkok Hub and New Aircraft to Join THAI
Eamsiri adds that the Thai Airways hub is quite different from others, as Bangkok has a lot of visiting carriers regarding an open sky policy. "Reaching 40% market share is going a bit difficult“, he said.
One-third of Thai Airways' business are long-haul routes to Europe. Starting in July, the carrier has added Milan and Oslo. By the end of 2024, THAI will also add Brussels to its network.
Asking about the massive competition from Middle Eastern carriers or Turkish Airlines, he said that's a different story,
The Middle East or Istanbul is a different market, it is a one-stop service. Our nonstop schedule is one of our highlight. Of course, there is a choice (for passengers). We build Bangkok as a hub and have our own strength.
Thai Airways CEO Chai Eamsiri
Today, domestic traffic is less than 10% of Thai Airways business. Thai Airways has no plans for another long-haul base from another airport in Thailand.
“We can not have a dual hub system, we expand mainly in Bangkok“.
Thai Airways CEO Chai Eamsiri
THAI will operate by the end of 2024 with 79 aircraft, 20% less than before the pandemic.
THAI has 45 787 for delivery starting from 2027. “But we cannot wait until 2027. We also acquire and implement aircraft for the short term“, he said. That includes five 787s and two A330s. “We can increase capacity, especially to Europe. We are lucky that we found some aircraft and did not stop seeking new aircraft“.
Talking about the importance of alliance membership, Thai Airways is one of the founding members of Star Alliance, Eamsiri said that codeshare is a good starting point and joint venture (JV) is the ultimate partnership. "But this has to be selective because a JV needs trust that needs the same philosophy to start with“. Turkish Airlines could be Thai Airways' first joint venture partner.
Acting as a Private Company
Asking about Thai Airways rehabilitation plan, the CEO said that this is not completed, but it is going better than the plan. “We are quite satisfied with the results of last year. Also, the first quarter of this year shows the same direction in results“, he said.
The big change for Thai Airways compared to the past, is now a truly private company. The way we are doing business, the speed, professionalism, I think we are changing. We decide on the business transition very quickly compared to the past. Regarding our latest Boeing 787 order. If we were state owned, I didn't think we could get it (the order). Thats a big difference.
Thai Airways CEO Chai Eamsiri
