Thai Airways and Nok Air - A little late to cry now
Jun 18, 2007, 11:44 pm
#1
Original Poster
Join Date: Jun 2007
Programs: Thai
Posts: 37
Thai Airways and Nok Air - A little late to cry now
Well Boo Hoo,
Thai Airways has some competition from itself. They can't even handle the heat in the kitchen they built.
http://bangkokpost.net/Business/19Jun2007_biz28.php
Quite what it means to not work in the best interests of Thai Airways means I do not understand, although anything they could do to reduce check in times is wonderful. Quite where this leaves DMK I don't know?
From the Bangkok Post - Proposed dedicated Concourse for Star Alliance
Thai Airways International may have to raise its stake in Nok Airlines to exert greater control of the budget airline, which THAI executives accuse of undermining the parent's interests.
If that does not work out, the flag carrier may revive its plan to set up its own no-frills carrier known as Euang Luang Airlines.
The National Legislative Assembly's Transport Committee, chaired by Adm Banawit Kengrian, yesterday discussed those two options after talks with THAI president Apinan Sumanseni and other senior executives.
The national carrier has been unhappy with Nok Airlines, accusing it of operating independently without regard for THAI's business strategy. It even competes with its parent firm.
Adm Banawit said that THAI may have to raise its stake in Nok Airlines to 51% from 39% currently so it can have more say in running the budget airline.
"It is essential that both sides come together to work towards greater co-operation to create synergy, not conflict," he said, adding that the committee would serve as a go-between.
Adm Banawit said Nok Airlines should conduct its business to support THAI, the country's main airline. But he stressed that the plan to create Euang Luang should only be revived if other efforts to rein in Nok Airlines fail.
THAI seeks to centralise Suvarnabhumi operations
Thai Airways International has sought to have concourses at Suvarnabhumi Airport dedicated to serving its flight operations and those of its Star Alliance partners.
The national carrier yesterday won support from the National Legislative Assembly's Transport Committee, chaired by Adm Banawit Kengrian, to have its own area at the airport for flight operations.
The committee will liaise with Airports of Thailand Plc (AoT), which operates Suvarnabhumi, to allow THAI to centralise its services with gates in a single location.
Adm Banawit said that consolidating THAI's flight services including check-in counters, lounges, boarding and arrival gates would be in line with practices in major airports around the world where home-based carriers have a dedicated terminal to enhance passenger convenience.
THAI president Apinan Sumanseni said the plan did not mean the airline wanted to build a new terminal, but to modify existing facilities.
THAI executives said the plan for a dedicated terminal at Suvarnabhumi was partly driven by Star Alliance's move under one roof. The idea is to have member airlines operate in a common area and use joint facilities to provide seamless flight connectivity.
THAI is the largest operator at Suvarnabhumi with about 300 flights a day, accounting for more than 40% of traffic volume.
The 17-member Star Alliance accounts for up to 60% of Suvarnabhumi's traffic. Though they use common lounges operated by THAI, Star members' check-in counters and gates are far from THAI's, which operates at the C concourse.
The disparate locations have been blamed for undermining Star's efforts to reduce connection times, said THAI vice-president Pridi Boonsue.
The connection time is 70 minutes and airlines want to reduce it to 60 minutes, the average at the old Don Mueang airport, he said.
Star member airlines contribute US$200 million a year to THAI in terms of ticket sales for transferred flights, while THAI generates about $100 million a year in sales to Star airlines.
THAI shares closed yesterday on the Stock Exchange of Thailand at 44 baht, up 1.50 baht, in trade worth 184 million baht.
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Thai Airways has some competition from itself. They can't even handle the heat in the kitchen they built.
http://bangkokpost.net/Business/19Jun2007_biz28.php
Quite what it means to not work in the best interests of Thai Airways means I do not understand, although anything they could do to reduce check in times is wonderful. Quite where this leaves DMK I don't know?
From the Bangkok Post - Proposed dedicated Concourse for Star Alliance
Thai Airways International may have to raise its stake in Nok Airlines to exert greater control of the budget airline, which THAI executives accuse of undermining the parent's interests.
If that does not work out, the flag carrier may revive its plan to set up its own no-frills carrier known as Euang Luang Airlines.
The National Legislative Assembly's Transport Committee, chaired by Adm Banawit Kengrian, yesterday discussed those two options after talks with THAI president Apinan Sumanseni and other senior executives.
The national carrier has been unhappy with Nok Airlines, accusing it of operating independently without regard for THAI's business strategy. It even competes with its parent firm.
Adm Banawit said that THAI may have to raise its stake in Nok Airlines to 51% from 39% currently so it can have more say in running the budget airline.
"It is essential that both sides come together to work towards greater co-operation to create synergy, not conflict," he said, adding that the committee would serve as a go-between.
Adm Banawit said Nok Airlines should conduct its business to support THAI, the country's main airline. But he stressed that the plan to create Euang Luang should only be revived if other efforts to rein in Nok Airlines fail.
THAI seeks to centralise Suvarnabhumi operations
Thai Airways International has sought to have concourses at Suvarnabhumi Airport dedicated to serving its flight operations and those of its Star Alliance partners.
The national carrier yesterday won support from the National Legislative Assembly's Transport Committee, chaired by Adm Banawit Kengrian, to have its own area at the airport for flight operations.
The committee will liaise with Airports of Thailand Plc (AoT), which operates Suvarnabhumi, to allow THAI to centralise its services with gates in a single location.
Adm Banawit said that consolidating THAI's flight services including check-in counters, lounges, boarding and arrival gates would be in line with practices in major airports around the world where home-based carriers have a dedicated terminal to enhance passenger convenience.
THAI president Apinan Sumanseni said the plan did not mean the airline wanted to build a new terminal, but to modify existing facilities.
THAI executives said the plan for a dedicated terminal at Suvarnabhumi was partly driven by Star Alliance's move under one roof. The idea is to have member airlines operate in a common area and use joint facilities to provide seamless flight connectivity.
THAI is the largest operator at Suvarnabhumi with about 300 flights a day, accounting for more than 40% of traffic volume.
The 17-member Star Alliance accounts for up to 60% of Suvarnabhumi's traffic. Though they use common lounges operated by THAI, Star members' check-in counters and gates are far from THAI's, which operates at the C concourse.
The disparate locations have been blamed for undermining Star's efforts to reduce connection times, said THAI vice-president Pridi Boonsue.
The connection time is 70 minutes and airlines want to reduce it to 60 minutes, the average at the old Don Mueang airport, he said.
Star member airlines contribute US$200 million a year to THAI in terms of ticket sales for transferred flights, while THAI generates about $100 million a year in sales to Star airlines.
THAI shares closed yesterday on the Stock Exchange of Thailand at 44 baht, up 1.50 baht, in trade worth 184 million baht.
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Jun 19, 2007, 6:40 pm
#2
Join Date: Jul 2006
Location: Seoul, Korea
Programs: ROP Gold, BD Gold, Asiana Club Silver
Posts: 678
That's quite funny. TG alienates many of their foreign based customers, decide to move to DMK together with Nok Air where they will be in direct competition with each other, and then complain about Nok Air taking away their business. It is TG's problem in that they are eliminating some of the reasons for flying them over Nok Air or Air Asia while significantly increasing their prices. If they want to compete with Nok Air, they need to make their prices much more competitive. If they want to attract a different group of customers than Nok Air, then they need to differentiate their product more from Nok Air by offering additional services and more convenience to the passengers, not less. Nok Air has just been doing what they've been doing all along. It is TG who is modifying their business practices to become more like Nok Air, not the other way around. But a good attempt at trying to blame someone else for their lack of good business sense.