Naim 6 Report post Posted July 7, 2008 July 07, 2008 16:51 PM Airlines In Thailand Cut Routes, Frequencies By D. Arul Rajoo BANGKOK, July 7 (Bernama) -- With jet fuel prices skyrocketing and passenger traffic slowing down, Thailand's four airlines have started reducing routes as well as flight frequencies, including popular long haul flights. Thai Airways International (THAI), its low cost subsidiary Nok Air, Thai Air Asia and One-Two-Go have cited jet fuel prices of more than US$170 a barrel and strong competition for the move. It has affected many popular destinations in the country. THAI, the Kingdom's premium airline and one of the only 11 international airlines that offers extra-long scheduled passenger flights, had stopped its 17-hour Bangkok-New York route on July 1 while the non-stop Bangkok-Los Angeles and Bangkok-Auckland routes would have stop-overs beginning October. "The era of ultra long-haul flights has come to an end," Bangkok Post quoted THAI executive vice-president Pandit Chanapai as saying. The airline recently increased its fuel surcharge and currently charges between US$60 and US$281 per ticket. Despite having almost full capacity for the New York route which started in May, 2005, the airline said it would lose about 120 million baht a year (about RM120 million) as the Airbus A340-500s with 275 seats need more than 210,000 litres of fuel for the 13,000km journey. It is also looking for buyers for its four A340-500 jets, which have a listed price of about US$180 million each. The Association of Thai Travel Agents had said that several major airlines, including THAI and Lufthansa are likely to cut long haul flights due to the expected 12 percent drop in inbound tourists, reducing the 17 million target to 15 million next year, while Nok Air, 39 percent owned by THAI, was given a lifeline by its major shareholders last week after initial talk that it would be closed down after registering 114 million baht in losses. From about 52 flights a day, Nok Air, which operates nine Boeing 737 and one ATR propeller plane, has reduced frequencies to 32 while international routes to Bangalore in India and Hanoi had been cancelled. Thai AirAsia had cancelled its weekly flight to Xiamen, China due to lack of passengers, reduced daily flights to Yangon to four a week but still plans to fly to Hong Kong and Guangzhou, China in the next few months. It currently flies to 10 local and 11 international destinations, including Kuala Lumpur (seven flights daily), Penang and Johor Baharu. One-Two-Go, launched four years ago as Thailand's first low-cost carrier, has cut the number of Bangkok-Chiang Mai and Bangkok-Phuket flights from 28 per week to 21, while frequencies to Hatyai, Chiang Rai and Nakhon Si Thammarat have also been reduced. Its parent company, Orient Thai Airlines, which mainly operates international services, have also lease out planes to Myanmar Airlines. -- BERNAMA http://www.bernama.com/bernama/v3/news_lite.php?id=344487 Share this post Link to post Share on other sites
Ashmil Abd Ghani 0 Report post Posted July 7, 2008 One extra-long journey has been cut off and I like to see what SIA will react with current situation..but I strongly believe SIA will remain their extra-long haul journey with A340 due to SIA reputation.. Share this post Link to post Share on other sites
Mushrif A 3 Report post Posted July 8, 2008 One extra-long journey has been cut off and I like to see what SIA will react with current situation..but I strongly believe SIA will remain their extra-long haul journey with A340 due to SIA reputation.. Not so much reputation, but better yields as SQ's flights are (or will be all) all biz on the ULH. Share this post Link to post Share on other sites
Ryan Soh 3 Report post Posted July 8, 2008 Not so much reputation, but better yields as SQ's flights are (or will be all) all biz on the ULH. How true. One must also bear in mind the different passenger demoraphics with BKK and SIN entails. with the latter being a better yielding destination compared to the other which a leisure oriented one. Share this post Link to post Share on other sites
James Gota 0 Report post Posted July 8, 2008 One extra-long journey has been cut off and I like to see what SIA will react with current situation..but I strongly believe SIA will remain their extra-long haul journey with A340 due to SIA reputation.. They should replaces them with 777-200LR's Share this post Link to post Share on other sites
Ryan Soh 3 Report post Posted July 8, 2008 They should replaces them with 777-200LR's Not really, the A340-500s suit their ULH for now just fine and whether they can eeke a reasonable profit out of this 100% JCL configuration remains to be seen. But we are hopeful. Share this post Link to post Share on other sites
Seth K 3 Report post Posted July 9, 2008 (edited) LH an TG likely to cut route due to 12% less pax? May be due to their lack of PTV in most planes? I hope TG 747's servicenBKK-Phuket vv. remain on the map Edited July 9, 2008 by Seth K Share this post Link to post Share on other sites
