Thai Airways International economic restructuration is taking shape and will show its first concrete results from October in the airline’s official IATA winter schedule 2015/2016. The network’s adjustment was presented by the airline’s president, Charamporn Jotikasthira to TG Board of Directors.
It will not only be on services reduction. The carrier will in fact boost its frequencies to Frankfurt and London. Both European cities will be served by two daily flights (one frequency with the Airbus A380 and the second one with the Boeing 777-300ER). Muncih and Zurich will continue to be served with the Airbus A380 with enhanced comfort.
At the same time, the airline will ‘temporarily’ suspend its Bangkok-Rome route, served by four weekly flights as well as its Bangkok-Seoul-Los Angeles route, also served with four weekly frequencies. The carrier is also reducing its schedule to Kolkata, going down to 7 flights a week instead of 10/week.
They will also be transfers of routes to Thai Smile on the regional network. Thai Airways more cost-efficient offspring will take over routes from Bangkok to Hyderabad and Luang Prabang. The airline is also asking Chinese authorities to take over TG operation on Bangkok-Changsha.
According to Thai Airways International, the flight schedules adjustment is part of the Company’s Transformation Plan to reduce losses by reducing operating costs, improving sales structure, and generating revenue. There are currently 50 routes that are operating at a loss and/or have less potential in profitability. The Transformation Plan envisions a total capacity reduction of 10% of the total flight production. However, current capacity decrease represents only 5% of the capacity due to some signs of market recovery.
Thailand national carrier has carefully considered the suspension of routes using various criteria such as operating results of the past 10 years, market environment and competition, potential for development as well as connecting passengers. As a result, it was found that the routes selected for suspension did not meet any of the criteria. The suspended routes are only on a temporary basis. Thai will review again its schedule as soon as markets’ recovery will provide added financial value to the carrier.
(Photo Source: Thai Airways Aircraft at Los Angeles Int’l Airport- uploaded by Rusavia on wikipedia)