THAI Airways Reports Huge 11.5 billion Loss
Mar 3, 2019, 2:59 pm
#1
Original Poster
Join Date: Apr 2005
Location: BKK, SFO
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Posts: 185
THAI Airways Reports Huge 11.5 billion Loss
From the Bangkok Post: https://www.bangkokpost.com/news/gen...e-b11-5bn-loss
Thoughts from Lucky at OMAAT: https://onemileatatime.com/thai-airways-losing-money/
Thoughts from Lucky at OMAAT: https://onemileatatime.com/thai-airways-losing-money/
Mar 3, 2019, 7:19 pm
#3
Join Date: Aug 2017
Posts: 205
The following is some of my thoughts towards TG:
1. Whether TG would introduce Premium Econ like CX, VN and SQ? Not like those to Northern Europe in previous days. PEY and J is the most profitable in the aviation industry nowadays but not F and Y
2. Would TG focus on both Transit and O&D passengers? I feel that TG focus on O&D only
3. TG prices not competitive, to be honest it is a tough war against QR, EK, or some European Carriers. I do agree that TG can tune down their prices in some routes.
4. TG can consider restructuring their fleet. Yes, 747 is a problem, but I would think TG should take a strategy like smaller planes like 787/350 instead of 77W, but more frequencies, not only to European destinations but also to regional Asian destinations.
Should they scrap their A380? Well...
I would use a term of "Viscisous Circle"
No Passenger => No Income => No Money for buying new planes / renovation of cabins => No Passenger => .....
1. Whether TG would introduce Premium Econ like CX, VN and SQ? Not like those to Northern Europe in previous days. PEY and J is the most profitable in the aviation industry nowadays but not F and Y
2. Would TG focus on both Transit and O&D passengers? I feel that TG focus on O&D only
3. TG prices not competitive, to be honest it is a tough war against QR, EK, or some European Carriers. I do agree that TG can tune down their prices in some routes.
4. TG can consider restructuring their fleet. Yes, 747 is a problem, but I would think TG should take a strategy like smaller planes like 787/350 instead of 77W, but more frequencies, not only to European destinations but also to regional Asian destinations.
Should they scrap their A380? Well...
I would use a term of "Viscisous Circle"
No Passenger => No Income => No Money for buying new planes / renovation of cabins => No Passenger => .....
Mar 3, 2019, 8:36 pm
#5
FlyerTalk Evangelist
Join Date: Nov 2006
Location: Stoke on Trent, UK (MAN ), BUE, BKK, DBV
Programs: LH HON***,UA,BA.EK Gold,AV.
Posts: 11,646
Mar 3, 2019, 8:38 pm
#6
Join Date: Oct 2014
Location: BKK
Programs: BRK-B
Posts: 580
The following is some of my thoughts towards TG:
1. Whether TG would introduce Premium Econ like CX, VN and SQ? Not like those to Northern Europe in previous days. PEY and J is the most profitable in the aviation industry nowadays but not F and Y
2. Would TG focus on both Transit and O&D passengers? I feel that TG focus on O&D only
3. TG prices not competitive, to be honest it is a tough war against QR, EK, or some European Carriers. I do agree that TG can tune down their prices in some routes.
4. TG can consider restructuring their fleet. Yes, 747 is a problem, but I would think TG should take a strategy like smaller planes like 787/350 instead of 77W, but more frequencies, not only to European destinations but also to regional Asian destinations.
Should they scrap their A380? Well...
I would use a term of "Viscisous Circle"
No Passenger => No Income => No Money for buying new planes / renovation of cabins => No Passenger => .....
1. Whether TG would introduce Premium Econ like CX, VN and SQ? Not like those to Northern Europe in previous days. PEY and J is the most profitable in the aviation industry nowadays but not F and Y
2. Would TG focus on both Transit and O&D passengers? I feel that TG focus on O&D only
3. TG prices not competitive, to be honest it is a tough war against QR, EK, or some European Carriers. I do agree that TG can tune down their prices in some routes.
4. TG can consider restructuring their fleet. Yes, 747 is a problem, but I would think TG should take a strategy like smaller planes like 787/350 instead of 77W, but more frequencies, not only to European destinations but also to regional Asian destinations.
Should they scrap their A380? Well...
I would use a term of "Viscisous Circle"
No Passenger => No Income => No Money for buying new planes / renovation of cabins => No Passenger => .....
Mar 3, 2019, 11:53 pm
#7
FlyerTalk Evangelist
Join Date: Mar 2005
Location: WLG/BKK
Programs: TG*G, NZ*GE, QF G, Accor Gold
Posts: 10,206
[pedantic ON]
Indemic - a go ahead New Zealand production design and consulting company, based in Taranaki Indemic - Product Development, Taranaki, New Zealand - Work
Endemic - adj(of a disease or condition) regularly found among particular people or in a certain area.
[pedantic OFF]
Mar 4, 2019, 1:38 am
#9
Join Date: Jan 2016
Posts: 905
The things they COULD do: prune back the bloated bureaucracy, go ‘all in’ with ONE model ( eg, 787/350 for both long and regional), get out of domestic entirely through Smile, show the hiso freeloaders the door once and for all, spend some time on modelling/research in route planning ( as opposed to the “wouldn’t it be nice if we flew there”approach), try to stay even ball-park competitive in respect of fares ( not my experience from looking yesterday: BKK-CDG Finnair 77,000, Thai 114,000...of course I’m going to add 2 hours to the journey to save more than 1000 USD; but for 200 extra I’d probably go with Thai , but it never happens these days).
The WORST thing they could do: tinker with ROP via ‘enhancements’. The program probably is too generous as it stands. IMO, they’re stuck with it because if the decrease benefits then members will walk .
What they WILL do: make a few board appointments , potter around the edges and continue to hold out for govt bail out funds. As it stands, the govt’s ‘golden’ share is worthless and there isn’t going to be any miraculous turnaround.
It’s unfortunate, sad even, but unsurprising.
The WORST thing they could do: tinker with ROP via ‘enhancements’. The program probably is too generous as it stands. IMO, they’re stuck with it because if the decrease benefits then members will walk .
What they WILL do: make a few board appointments , potter around the edges and continue to hold out for govt bail out funds. As it stands, the govt’s ‘golden’ share is worthless and there isn’t going to be any miraculous turnaround.
It’s unfortunate, sad even, but unsurprising.
Mar 4, 2019, 2:17 am
#10
FlyerTalk Evangelist
Join Date: Nov 2006
Location: Stoke on Trent, UK (MAN ), BUE, BKK, DBV
Programs: LH HON***,UA,BA.EK Gold,AV.
Posts: 11,646
I know what you meant, but...
[pedantic ON]
Indemic - a go ahead New Zealand production design and consulting company, based in Taranaki Indemic - Product Development, Taranaki, New Zealand - Work
Endemic - adj(of a disease or condition) regularly found among particular people or in a certain area.
[pedantic OFF]
[pedantic ON]
Indemic - a go ahead New Zealand production design and consulting company, based in Taranaki Indemic - Product Development, Taranaki, New Zealand - Work
Endemic - adj(of a disease or condition) regularly found among particular people or in a certain area.
[pedantic OFF]
Mar 4, 2019, 2:18 am
#11
Join Date: Feb 2013
Programs: LH M&M, BA EC, DL SM
Posts: 5,731
4. TG can consider restructuring their fleet. Yes, 747 is a problem, but I would think TG should take a strategy like smaller planes like 787/350 instead of 77W, but more frequencies, not only to European destinations but also to regional Asian destinations.
Should they scrap their A380? Well...
Should they scrap their A380? Well...
TG should probably reduce fleet complexity to one VLA (i.e. get rid of the old 747s and keep the A380s for the routes it works well on) and one (or two) other efficient aircraft such as the A350, instead of buying planes left and right.
Mar 4, 2019, 2:43 am
#12
FlyerTalk Evangelist
Join Date: Nov 2006
Location: Stoke on Trent, UK (MAN ), BUE, BKK, DBV
Programs: LH HON***,UA,BA.EK Gold,AV.
Posts: 11,646
I have a round trip to East Asia on TG coming up and will (if things happen according to schedule) experience 4 different widebody aircraft. And the 747 I was on just recently and the 787 that has issues are not even one of them ...
TG should probably reduce fleet complexity to one VLA (i.e. get rid of the old 747s and keep the A380s for the routes it works well on) and one (or two) other efficient aircraft such as the A350, instead of buying planes left and right.
TG should probably reduce fleet complexity to one VLA (i.e. get rid of the old 747s and keep the A380s for the routes it works well on) and one (or two) other efficient aircraft such as the A350, instead of buying planes left and right.
It’s so much fun flying TG, you never know for sure what aircraft you will end up on & spare a thought for those that want to try every aircraft type flying, you just need to stick with TG
Of course if TG hadn’t procured all those different aircraft types & engine types , it would have severely limited the commissions
Mar 4, 2019, 5:54 am
#13
Join Date: Apr 2012
Location: perth
Programs: SPG(LTG), QANTAS gold, Korean, Accor Plat
Posts: 1,500
From the Bangkok Post: https://www.bangkokpost.com/news/gen...e-b11-5bn-loss
Thoughts from Lucky at OMAAT: https://onemileatatime.com/thai-airways-losing-money/
Thoughts from Lucky at OMAAT: https://onemileatatime.com/thai-airways-losing-money/
Mar 4, 2019, 5:59 am
#14
Original Poster
Join Date: Apr 2005
Location: BKK, SFO
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Posts: 185
Mar 4, 2019, 6:03 am
#15
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