THAI: News

Old Feb 29, 16, 6:14 pm
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THAI: News

Thai Airways plans service to Russia, US after good Q4/2015 results

THE NATION

March 1, 2016 1:00 am

THAI AIRWAYS International plans to resume flying to Russia and the United States as part of its plan to boost revenue after seeing cheerful results in the final quarter of last year.

The national airline will also help its budget carrier Nok Air, which has called mass cancellations of flights while sorting out internal problems.

THAI president Charamporn Jotikasthira said yesterday that the company has no plan to sell its stake in Nok Air, despite the issues besetting the budget airline.

Moscow will be added back to the schedule in October - the beginning of the high season for Thailand's tourism industry.

The airline also expects to return to the US market next year.

http://www.nationmultimedia.com/busi...-30280496.html
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Old Feb 29, 16, 6:16 pm
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THAI sets B2bn 'retiree' plan

Thai Airways International Plc (THAI) has earmarked 2 billion baht for voluntary staff retirements this year as the airline posted a net loss of 13.04 billion baht for last year. THAI president Charamporn...

http://www.bangkokpost.com/news/gene...n-retiree-plan
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Old Mar 4, 16, 7:22 pm
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THAI presentation 1 March 2016.

Not sure I'd use "Stop Bleeding" on a ppt slide unless I was describing a surgical procedure?

http://thai.listedcompany.com/misc/P...ing-4q2015.pdf
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Old Mar 4, 16, 7:30 pm
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Great news! Fingers crossed for LAX to come back. I am kind of surprised TG ever stopped flying to Russia considering the tourist demand.
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Old Mar 6, 16, 12:38 am
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Originally Posted by transpac View Post
THAI presentation 1 March 2016.

Not sure I'd use "Stop Bleeding" on a ppt slide unless I was describing a surgical procedure?

http://thai.listedcompany.com/misc/P...ing-4q2015.pdf
Thank you for posting this interesting presentation.
The recent optimism seem a bit exaggerated.

The bad news is that revenues keep dropping.
That is in part due to cutting a few routes, but mostly due to a reduction in yield (THB/km) to the tune of -7%. That's bad. The cabin factor (load) increased as passenger production decreased more than passenger traffic. But TG had to reduce its fares to attract pax. Freight is also bad. Revenues would have been worse, if there had not been a significant increase in "other revenue" (non-Pax, non-freight) and I don't know what that is.

The gain is on the cost side.
Non-fuel expenses have dropped by 8 billion BHT, and that is good. Of course, that is partly offset by the special items of the reform plans.
Fuel expenses have dropped by 16 billion.

The question for the future is pricing and competition. With fuel prices down, all airlines are lowering fares. If TG manages to maintain reasonably-high fares, it will generate operating profits. If its competitors with a cheaper cost base offer cheaper fares, TG might have to follow. The ME3 have 13 flights to BKK, many A380s. LCCs are tough competitors on regional routes. TG is not the price-setter on most of its routes.
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Old Mar 6, 16, 12:50 am
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Originally Posted by Madone59 View Post
I am kind of surprised TG ever stopped flying to Russia considering the tourist demand.
TG could not compete with Transaero flying 747s from Saint Petersburg and Moscow nonstop to Phuket, for example.
However, Transaero folded in late 2015, so the prospects for TG are a bit better. Still, the fact that it does not fly nonstop to Phuket is a major drawback in its competition with ME3, SU and all other airlines who offer a one-stop service. And the state of the rubble not goof.
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Old Mar 6, 16, 8:36 am
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Originally Posted by Madone59 View Post
. It am kind of surprised TG ever stopped flying to Russia considering the tourist demand.
There are definitely less Russian tourists in Thailand these days (as RUB lost a lot of its value).
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Old Mar 6, 16, 3:00 pm
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Would love to see TG resume regularly scheduled service to the US possibly with their new A350 metal?


SL
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Old Mar 6, 16, 3:02 pm
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Originally Posted by TPJ View Post
There are definitely less Russian tourists in Thailand these days (as RUB lost a lot of its value).
But since both Egypt as well as Turkey are "off" for Russian tourists, Thailand will receive quite some who used to fly there.
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Old Mar 6, 16, 6:10 pm
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Originally Posted by brunos View Post
Thank you for posting this interesting presentation.
Revenues would have been worse, if there had not been a significant increase in "other revenue" (non-Pax, non-freight) and I don't know what that is.
I assumed the other revenue is from TG catering and their maintenance services.
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Old Mar 6, 16, 6:17 pm
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On the revenue side:

Pax revenue down.

Cargo down.

Nice Fx gain.
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Old Mar 7, 16, 8:19 am
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Originally Posted by joy16 View Post
I assumed the other revenue is from TG catering and their maintenance services.
Indeed, looking at 2014 annual report, 2014 "other revenues" were made of about 10b BHT of these revenues from other activities and subsidiaries and 2.5b of "other income", mostly compensations for delayed A380 delivery and insurance compensation for floods and a plane accident.
2015 shows a 40% increase in this "other revenues". assuming that revenues from maintenance and catering remained around 10b, that means "other income" grew from 2.5 to 7.6. I wonder what compensations allowed such a wonderful increase in revenues.
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Old Mar 7, 16, 9:32 am
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Originally Posted by brunos View Post
Indeed, looking at 2014 annual report, 2014 "other revenues" were made of about 10b BHT of these revenues from other activities and subsidiaries and 2.5b of "other income", mostly compensations for delayed A380 delivery and insurance compensation for floods and a plane accident.
2015 shows a 40% increase in this "other revenues". assuming that revenues from maintenance and catering remained around 10b, that means "other income" grew from 2.5 to 7.6. I wonder what compensations allowed such a wonderful increase in revenues.
Creative accounting .
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Old Mar 7, 16, 12:39 pm
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Originally Posted by brunos View Post
Still, the fact that it does not fly nonstop to Phuket is a major drawback
This is why I never understood the CPH-HKT flight instead of DME-HKT.
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Old Mar 7, 16, 5:33 pm
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Originally Posted by Lament View Post
Creative accounting .
Mot likely.
The were under trememndous pressure to show that the reform is working, so they pump up some "exceptional" item in Q4 2015. Will know what it is soon.
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