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TII-2004-03 SMOOTH AS SILK
TII-2004-08 A380 ORDER
TII-2004-11 747-400 ROYAL BARGE
TII-2005-04-A340-541 NEW LIVERY
TII-2006-WLD TOP RPK
TII-2007-02 A340-500 HIGH FUEL
TII-2011-01-2010 WORLD TOP TRAFFIC
TII-2012-07 - THAI SMILE A320
TII-2012-10 - SAPPORO LAUNCH
TII-2013-02 - UPDATE-A
TII-2013-02 - UPDATE-B
TII-2013-02 - UPDATE-C
TII-2013-02 - UPDATE-D
TII-2013-02 - UPDATE-E
TII-2013-02 - UPDATE-F
TII-2013-02 - UPDATE-G
TII-2013-02 - UPDATE-H
TII-2013-02 - UPDATE-I
TII-2013-07 - CHILDREN BACKPACKS
TII-2013-09 - INCDT
TII-2014-03-THAILAND TOP 12 AIRLINES
TII-2014-03-TOP 12 MARKETS
TII-CABIN ATTENDANT - 2013-02
TII-Cabin Attendant-A 2018-06.jpg
TII-Cabin Attendants 2015-09.jpg
TII-Cabin Attendants 2017-08 GG.jpg
TII-Cabin Attendants 2018-07 JJ.jpg
TII-Cabin Attendants 2018-10 D.jpg
TII-FLY BKK-LAX - A340-500 - A
TII-FLY BKK-LAX - A340-500 - B
TII-TRAVEL TIPS CULTURE NO NO
TII-VISIT BANGKOK MARKET-A
TII-VISIT BANGKOK MARKET-B
FORMED IN 1959 AND STARTED OPERATIONS IN 1960. DOMESTIC, REGIONAL & INTERNATIONAL, SCHEDULED, PASSENGER, JET AIRPLANE SERVICES.
89 VIBHAVADI RANGSIT SUPER HIGHWAY
PO BOX 1075 GPO
BANGKOK 10900, THAILAND
THAILAND (KINGDOM OF THAILAND) COVERS AN AREA OF 513,115 SQ KM, ITS POPULATION IS 59 MILLION, ITS CAPITAL CITY IS BANGKOK, AND ITS OFFICIAL LANGUAGE IS THAI.
August 1959: ESTABLISHED TO OPERATE INTERNATIONAL SERVICES, AS A JOINT VENTURE BETWEEN DOMESTIC CARRIER, THAI AIRWAYS (70%) AND (SAS) 30%).
APRIL 1977: THE (SAS) HOLDING IN THAI AIRWAYS INTERNATIONAL (TII) GRADUALLY REDUCED OVER THE YEARS. (TII) NOW IS WHOLLY GOVERNMENT OWNED.
APRIL 1988: THAI AIRWAYS AND THAI AIRWAYS INTERNATIONAL (TII) MERGED.
JULY 1992: ACCDT: (TII) A310-300 CRASHED INTO HIGH GROUND ON LANDING AT KATHMANDU, NEPAL = 14/99 FATALITIES.
JANUARY 1993: (92.86%) GOVERNMENT OWNED.
1992 = +$120.4 MILLION (+$197.3 MILLION) (NET PROFIT).
APRIL 1993: 12 - 18 MONTHS DELAY, OF 2 ORDERS 747-400'S, & 7 A330'S. CANCELLED 6 OPTIONS 777'S, & 7 OPTIONS A330'S.
MAY 1993: 747-4D7 (PW167) DELIVERY.
OCTOBER 1993: 747-4D7 (RT691E) DELIVERY. TO DEFER 3 747-400'S AND 2 777'S DELIVERIES, BEYOND 1998.
JANUARY 1994: 6 MONTHS 1993 = +15.9% PASSENGERS (PAX).
DELAYS 6 A340-200'S DELIVERIES.
AUGUST 1994: CAPTAIN CHUSAK RE-ASSIGNED TO HEAD SECOND AIRCRAFT MAINTENANCE CENTER AT U-TAPAO, EASTERN THAILAND.
NOVEMBER 1994: 1 747-400 (RT698), 405 PAX, DELIVERY.
DECEMBER 1994: 1 A330-300, 50C, 265Y, DELIVERY.
FEBRUARY 1995: 1 A330-300 (PW4164) DELIVERY (4TH IN 12 MONTHS).
MARCH 1995: 1 A330-300 (PW4164) DELIVERY (6TH).
NOVEMBER 1995: PONGSAWIT PUNYINDI, SENIOR VP TECHNICAL WAS SUSPENDED INDEFINITELY.
THAI INTERNATIONAL (TII) TO CODE SHARE WITH LUFTHANSA (DLH) TO CHIANG MAI, PHUKET, PHNOM PENH, YANGOON & AUCKLAND, FROM FRANKFURT & MUNICH. CODE SHARE WITH UNITED AIRLINES (UAL).
3 737-200'S FOR SALE, 1 PARKED & 2 LEASED TO SHAHEEN AIRLINES (SHK). 1 A330-300 (PW4164) DELIVERY.
JANUARY 1996: 1995 = +$129 MILLION: +7.4% (RPK) PASSENGER TRAFFIC, +13.3% PASSENGERS (PAX), +10.3% (FTK) FREIGHT TRAFFIC. 1ST QUARTER FISCAL YEAR (FY) 1996 = +$50.7 MILLION (NET PROFIT).
RENEWS SERVICE, BANGKOK TO LOS ANGELES (LAX), VIA SEOUL (747-400, 4/WEEK)).
TO SELL 6 747-200'S (GE) TO ATLAS AIR (TLS) FOR CONVERSION TO FREIGHTERS (4 IN 1996, & 2 IN 1997).
MARCH 1996: SIRIPONG THONGYAI, CHAIRMAN ANNOUNCES $5.7 BILLION, 4 ORDERS 737-400/-500'S (CFM56-3B/C), 2 747-400'S (CF6-80C2), 6 ORDERS 777-200'S (TRENT 800), 5 ORDERS A300-600'S (CF6-80C2), 4 ORDERS A330-300'S (CF6-80E1), & SELLING 31 AIRPLANES: 2 737-200'S, 6 747-200'S, 2 747-300'S, 3 DC-10-30'S (48319; 48290; 48267), 7 A300B4'S, 2 A310-200'S, 5 B AE 146-300'S, 2 ATR42'S, & 2 ATR72'S. $1.07 BILLION, +6 ORDERS (AUGUST 1998 - NOVEMBER 2000) 777-300'S.
(PW4164) MAINTENANCE BY SR TECHNICS (SWS).
APRIL 1996: 1ST 777 (TRENT 875) DELIVERY. SOLD 2 737-200'S TO SHAHEEN AIRLINES (SHK), FOR $16.7 MILLION.
MAY 1996: 11.8 MILLION BAHT, 4 ORDERS 737-400/-500'S & 2 747-400'S.
JUNE 1996: 777 FLIES TO TAIPEI, SEOUL, HONG KONG, AND NEW DELHI.
$256 MILLION, CONTRACT, 1/2 ORDER (SEPTEMBER 1996) 747-200F, ATLAS AIR (TLS) WET-LEASED. 2ND 777 DELIVERY. +2 MD-11 (PW4460) DELIVERIES (NOW 4 WORLD AIRWAYS (WLD) LEASED).
JULY 1996: NEW THAI/RUSSIA AGREEMENT, ALLOWS FLIGHTS TO MOSCOW, VIA HO CHI MINH CITY, & VIENTIANE.
LAST QUARTER = +$23 MILLION.
CAPTAIN JOTHIN PAMON-MONTRI, SENIOR VP QUALITY CONTROL, RETIRES.
RE-ENGINEERING CONSULTANTS, BOOZ-ALLEN HAMILTON, RECOMMENDS CHANGES TO SYSTEMS STRUCTURES& PROCEDURES, TO ENSURE RECRUITMENT & INTERNAL
PROMOTIONS, ARE MADE ON BASIS OF MERIT & PERFORMANCE, RATHER THAN SOCIAL STATUS & FAMILY CONNECTIONS. 4 STEP PROGRAM IS PLANNING; DOING; CHECKING; ACTING.
FORECAST OF +$175 MILLION TO 185 MILLION FOR YEAR ENDING SEPTEMBER 1996. 1ST QUARTER = +$97 MILLION (+44.3%): +11.4% PASSENGERS (PAX), +4.7% (FTK) FREIGHT TRAFFIC.
AUGUST 1996: LAST QUARTER = +$23 MILLION.
SOLD 2 737-200'S TO SHAHEEN AIRLINES (SHK), FOR $11 MILLION.
SEPTEMBER 1996: 3RD 747-200 (RD363) TO ATLAS AIR (TLS), REMAINING 3, TO BE DELIVERED BEFORE APRIL 1997. AT FARNBOROUGH AIR SHOW, SIGNED MEMO OF UNDERSTANDING (MOU) FOR 4 747-500'S, & 2 747-600'S (2000 TO 2001).
OCTOBER 1996: NEW ROUTE TO MACAU. MALEV (HGA) CODE SHARE, TO BUDAPEST.
3RD 777 DELIVERY, VIEWED BY QUEEN ELIZABETH OF ENGLAND.
DECEMBER 1996: BILATERAL AGREEMENT WITH UGANDA AIRLINES (UGA), TO ENTEBBE.
10TH 747-400, & 4TH 777 DELIVERIES.
JANUARY 1997: 4TH QUARTER = +$13.1 MILLION (-75%): RISING FUEL PRICES, INCREASED COMPETITION, BUREAUCRATIC OPERATING INEFFICIENCIES & MEDDLING BY VARIOUS STATE AGENCIES.
FISCAL YEAR (FY) 1996 = +$193.9 MILLION (+$182.4 MILLION) (NET PROFIT): 18,52 BILLION (RPK) (PASSENGER TRAFFIC) (#21 HIGHEST IN WORLD).
MAHIDOL CHANTRANGKUN, CHAIRMAN, EX-TRANSPORT & COMMUNICATIONS MINISTER.
NEW GOVERNMENT WHICH OWNS 93% THAI INTERNATIONAL (TII), PUTS HOLD ON NEW AIRPLANE ORDERS AND STATES PURCHASES MUST BE CHANGED TO LEASES: WAS $1.52 BILLION FOR 4 737-400/-500'S, 2 747-400', 6 777-300'S, & $1.15B, FOR 5 A300-600'S, & 4 A330-300'S.
MARCH 1997: MAHIDOL CHANTRANGKUN, CHAIRMAN; CAPTAIN PAYOON PUAKPONG, SENIOR VP QUALITY & SAFETY CONTROL; CAPTAIN CHUSAK BHACHAIYUD, EXECUTIVE VP TECHNICAL, TO MANAGE AIRCRAFT MAINTENANCE; BHISIT KUSLASAYANON, EXECUTIVE VP COMMERCIAL DEVELOPMENT SALES.
THAILAND GIVEN CATEGORY 2 BY (FAA) & AUSTRALIAN, SAFETY CHECK.
APRIL 1997: (FAA) OK'S CATEGORY 1, SAFETY OVERSIGHT RATING.
777 EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) ON HOLD, UNTIL AIRWORTHINESS DIRECTIVE (AD) ACCOMPLISHED, FOR ROLLS ROYCE (RR) (TRENT 800) REDESIGNED PARTS, DUE TO 10 OIL LOSS AND 1 BEARING FAILURE.
11TH 747-400 (RT802) (CF6-80C2B1F) DELIVERY.
MAY 1997: "STAR (SAL) ALLIANCE" WITH LUFTHANSA (DLH), SCANDINAVIAN AIRLINES (SAS), UNITED AIRLINES (UAL), & AIR CANADA (ACN), FOR SHARING OF TICKETING OFFICES, & SOME CODE SHARING.
5 ORDERS (MARCH 1998) A300-600R (PW4158), 261 PAX, 2 CLASS, AND 4 ORDERS (6/98) A330-300 (PW4164), 317 PAX, 2 CLASS. 747-2D7B (22472) SOLD TO (TLS).
AUGUST 1997: COMPLETED 1ST "C" MAINTENANCE CHECKS ON 777'S (WA086 & WA087). 5TH 779-2D7 (WA0890) DELIVERY.
OCTOBER 1997: 22,136 EMPLOYEES.
1ST 9 MONTHS = +$68.5 MILLION (-18%). 1ST 9 MONTHS = 21,080 MILLION (RPK) PASSENGER TRAFFIC (19TH HIGHEST IN THE WORLD).
SELLS LAST 3 DC-10'S, TO EURO AIRCRAFT TRADING COMPANY, UK, FOR $27 MILLION EACH, AND LEASED THEM BACK TO THAI INTERNATIONAL (TII), UNTIL APRIL 1998.
NOVEMBER 1997: 777-2D7 (100TH PRODUCTION DELIVERY!), 7TH "PATTANI" (A SOUTHERN PROVINCE IN THAILAND). 12TH 747-4D7 DELIVERY.
DECEMBER 1997: CHAIRMAN SAYS THAI INTERNATIONAL (TII) WILL PULL THROUGH LATEST ASIAN ECONOMIC SLUMP, AND WEAK BAHT.
STAR ALLIANCE WITH (TII), LUFTHANSA (DLH), SCANDINAVIAN AIRLINES (SAS), UNITED AIRLINES (UAL), AIR CANADA (ACN), & VARIG AIRLINES (VAR), AGREES TO A GLOBAL CARGO SYSTEM, TO SHARE INFO TECHNOLOGY, HANDLING FACILITIES, & DEVELOP JOINT PRODUCTS.
4 737-4D7'S & 1 777-2D7 DELIVERIES.
JANUARY 1998: SUTHEP THUEKSUBAN, TRANSPORT & COMMUNICATION MINISTER, SAYS THAI INTERNATIONAL (TII) MUST BE PRIVATIZED BY JUNE 1998.
DUE TO THE EXCHANGE RATE OF 45 BAHT TO $, (TII) LOSES -$40 MILLION. TOTAL FY 1997 = #87.57 MILLION BAHT (+9.58%). 1ST 6 MONTHS FY 1997 = +$67.4 MILLION (-18%). LAST Q THROUGH 12/97 = -$600 MILLION, DUE TO FOREIGN EXCHANGE, AND REGIONAL ECONOMIC CRISIS. ALSO DUE TO ACCOUNTING METHOD, GOVERNMENT REQUIRED, INCLUDING ALL UNREALIZED LOSSES.
FEBRUARY 1998: GOVERNMENT OK'S THAI AIR CARGO OPERATOR, JOINING COMMERCIAL TRANSPORTATION INTERNATIONAL COMPANY.
MARCH 1998: 777'S (25-27726 "LAMPHUN" /96; 32-27727 "UTHAI THANI;" /96; 42-27728 "NAKHON NAYOK" /96; 51-27729 "MUKDAHAN" /96; 89-27730 "CHAIYAPHUM" /97; 95-27731 "PAHNOM SARAKHAM" /97; 100-27732 "PATTANI." SELLS 3 DC-10-30'S (48267; 48290; 48319) TO ALLIANCE AIRINVEST, UK, FOR SUBSEQUENT LEASE TO NORTHWEST AIRLINES (NWA).
APRIL 1998: 22,136 EMPLOYEES. (http://www.thaiair.com).
MAY 1998: UNDER CAPTAIN CHUSAK'S LEADERSHIP, THAI INTERNATIONAL (TII) TECHNICAL DEPARTMENT IS AWARDED (ISO) 9002 CERTIFICATION, A KEY MEASURE FOR HIGHEST SAFETY AND QUALITY STANDARDS.
JUNE 1998: 1ST 6 MONTHS PROFITS = -55%, DUE TO FOREIGN EXCHANGE LOSS.
GOVERNMENT SAYS IT WILL REDUCE ITS OWNERSHIP TO 49% TO ASSIST PRIVATIZATION. DOMESTIC INVESTORS SHOULD TAKE 15%, AND 30% WILL BE AVAILABLE FOR FOREIGN INVESTORS.
MD-11 HEAVY MAINTENANCE CONTRACT, TO SWISSAIR TECHNICS (SWS).
SOLD 5 B AE 146-300'S, FOR $1 MILLION EACH.
JULY 1998: GOVERNMENT NOW DECIDES AGAINST PRIVATIZATION, AND WILL ONLY SELL 20% AND KEEP 70%.
COMPLETION OF 2ND MAINTENANCE CENTER, AT UTAPAO, FOR 747-400 "C" CHECKS, POSTPONED UNTIL 9/98.
1997 TOP WORLD AIRLINES COMPARISONS:
EMPLOYEES (K): 15 TWA 25; 16 SVA 25; 17 IND 23; 18 IBE 22; 19 SAS 22; 20 ACN 22; 21 TII 22; 22 PIA 21; 23 ALI 19; 24 AIN 19; 25 VAR 18; 26 JAL 17; 27 KAL 17.
PASSENGER TRAFFIC (RPK) (B): 16 TWA 41; 17 KAL 40; 18 CAT 39; 19 ACN 37; 20 ALI; 36; 21 TII 31; 22 MAS 29; 23 IBE 28; 24 SWS 28; 25 AMW 26.
PASSENGERS (PAX) (MILLION): 16 QAN 19; 17 AMW 18; 18 JAS 17; 19 IBE 15.4; 20 GUN 15.2; 21 TII 15.0; 22 KLM 14.5; 23 ACN 14; 24 ANS 13.
FREIGHT TRAFFIC (FTK) (BILLION): 15 CLX 2.4; 16 AAL 2.4; 17 PAO 1.9; 18 SWS 1.8; 19 NCA 1.8; 20 MTH 1.8; 21 TII 1.6; 22 ALI 1.5; 23 EAF 1.4.
DELIVERY OF 3 A300-600'S, AND 1 A330-300, PUT ON HOLD.
AUGUST 1998: A330-322 (209 - "SUDAWADI") DELIVERY.
SEPTEMBER 1998: (IATA) THAI INTERNATIONAL (TII) FY 1997 = +$101.8 MILLION.
PLANS FOR NEW PRIVATE COMPANY: THAI AIRCRAFT ENGINEERING SERVICES COMPANY (TAESCO): LIGHT MAINTENANCE, THAI INTERNATIONAL (TII) OWNS 100%; HEAVY MAINTENANCE & ENGINE SHOP (TII) OWNS 49%, KING 2%, REST ARE OUTSIDE INVESTORS.
2ND MAINTENANCE CENTER AT UTAPAO, OPENING DELAYED TIL NEXT MONTH.
NEW 777-3D7 (170-29151 "CHAINARAI") ON DISPLAY AT FARNBOROUGH AIR SHOW. A330-322 (231) DELIVERY.
OCTOBER 1998: 1997 = -$732.9 MILLION (+$83 MILLION). 1ST 5 MONTHS = 13.9 BILLION RPK (+4%), 606 MILLION FTK (-5.8%), 6.58 MILLION PAX (-.9%). 3RD Q = -$103 MILLION.
IN 1/99 TO COPENHAGEN (747-400). IN 6/99 TO STOCKHOLM (747-400).
AIRBUS TAKES A300B4-203 (CF6-50C2) (249), & PROBABLY +6, IN TRADE FOR 5 A300-600R'S & 3 A330-300'S.
NOVEMBER 1998: A300B4-203 (265) TRADED IN TO AIRBUS. A300B4-622R (787) DELIVERY.
DECEMBER 1998: 747-4D7 (CF6-80C2) (28705) AND 2 777-3D7 (TRENT 875) (29150; 29151), LEASED, DELIVERIES. 4 A300B4-622R'S (782; 784; 785; 786) & 1 A330-322 (224) DELIVERIES.
ACCDT: A310-204 (415, 23K HOURS, /86) CRASHED, 2 MILES SHORT OF SURAT THANI AIRPORT, SOUTHERN THAILAND, MAKING 3RD ATTEMPT AT EMERGENCY LANDING, IN BAD WEATHER = 101 FATALITIES OF TOTAL 146. THE AIRPORT DID NOT HAVE INSTRUMENT LANDING SYSTEM (ILS).
FEBRUARY 1999: MAINTENANCE CONTRACT TO LUFTHANSA TECHNIK (LTK) (DLH) FOR 21 (CFM56-3) ENGINES (737-400).
LOCAL REGULATORY AUTHORITY GIVES 75 MINUTES (ETOPS) APPROVAL, TO 777-300 FOR OPERATIONS TO SYDNEY.
REMOVES ALL A300B4'S FROM SERVICE.
FEBRUARY 1999: GOVERNMENT STATES THAI INTERNATIONAL (TII) IS LIMITED TO SELLING A MAXIMUM OF 12.5% ($349 MILLION) TO A SINGLE FOREIGN OPERATOR. INTEREST SHOWN, FROM LUFTHANSA (DLH), UNITED AIRLINES (UAL), BRITISH AIRWAYS (BAB) & AIR FRANCE (AFA).
1998 = 21.34 RPM (+10.8%), 3.21B FTM (+4.8%), 15 MILLION PAX.
MARCH 1999: 24,000 EMPLOYEES.
PART OF PRIVATIZATION PLAN, INCLUDES ONLY ALLOWING STAKES BY AIRLINE MEMBERS OF "STAR ALLIANCE."
4TH Q = +$170 MILLION, INCLUDING +$51.7 MILLION FROM SALE OF AIRCRAFT. IN 5/99, DOMESTIC FARES TO RAISE 13.5%.
PROPOSAL BEING CONSIDERED, TO CHANGE ORDER OF 5TH & 6TH 777-300'S, TO -200'S. DEFERS 1 ORDER (3Q/99) A330-300 (PW4168), TO 7/00.
APRIL 1999: 24,186 EMPLOYEES.
MAY 1999: THAI INTERNATIONAL (TII) ENGINEER'S & MAINTENANCE WORKERS, THREATEN TO CLOSE DOWN BANGKOK'S INTERNATIONAL AIRPORT WITH A STRIKE, IF (TII) GOES AHEAD WITH PRIVATIZATION PLAN TO SHIFT ITS 4,000 TECHNICAL DEPARTMENT EMPLOYEES TO A NEW COMPANY CALLED "THAI AIRCRAFT ENGINEERING SERVICES (THAI-AESCO)," WITH (TII) OWNING 49% OF COMPANY, 49% TO A FOREIGN COMPANY, AND 2% TO CROWN PROPERTY BUREAU (ROYAL FAMILY INVESTMENT ARM).
1ST Q = +$65 MILLION.
OPENS #80.7 BILLION, 3 WIDE BODY BAY, HANGAR, (JAR) 145 CERTIFIED, ON 2,400-ACRE SITE, AT U-TAPAO AIRPORT.
747-4D7 (1214-28706, HS-TGZ) DELIVERY.
JUNE 1999: 1ST 5 MONTHS = 15.64 BILLION RPK (+12.7%), 654.11 MILLION FTK (+7.9%), 6.88 MILLION PAX (+4.5%).
1998 TOP WORLD AIRLINES - PASSENGER TRAFFIC RPM (BILLION):
15 SWA 31.43; 16 CAT 25.26; 17 TWA 24.42; 18 ACN 23.21; 19 ALI 22.10; 20 TII 21.34; 21 IBE 20.19; 22 KAL 19.95; 23 MAS 18.25; 24 SWS 17.43; 25 CDI 16.70; 26 AMW 16.36.
JULY 1999: FOLLOWING (FAA) AUDIT OK, RENEWED FOREIGN REPAIR STATION CERTIFICATE.
AUGUST 1999: IN LATE 1999 TO DENANG, VIETNAM (737-400).
SEPTEMBER 1999: 1ST 8 MONTHS = 25.32 BILLION RPK (+12.8%), 1.08 BILLION FTK (+10.2%), 10.91 MILLION PAX (+6.1%).
SOLD A300B4-203 (141) TO AIRBUS.
OCTOBER 1999: 777-3D7 DELIVERY (BOEING'S 250TH 777). TO CELEBRATE THAI KING'S 72ND BIRTHDAY, PAINTED 747-4D7 (HS-TGJ WITH "ROYAL BARGE" ON FUSELAGE. 747-2D7BF (21783) RETURNED TO (TLS).
NOVEMBER 1999: 1998 = +$87.7 MILLION (+$101.80 MILLION) (+35.1%).
DECEMBER 1999: 777-3D7 (260-29212, HS-TKD) DELIVERY. 2 ORDERS 747-400, AND 4 ORDERS 777. 2 A300B4-103'S (84; 85) SOLD TO AIRBUS.
JANUARY 2000: RECEIVES 120 MINUTES (ETOPS) APPROVAL FROM LOCAL REGULATORY AUTHORITY FOR 777-200 & 777-300.
FEBRUARY 2000: 11,309 EMPLOYEES.
THAI INTERNATIONAL (TII) IS CONSIDERING LEAVING "STAR ALLIANCE," BECAUSE RIVAL, SINGAPORE AIRLINES (SIA) WILL BE JOINING IN 4/00. (TII) LOST $10 MILLION IN 1999, BECAUSE OF LUFTHANSA (DLH)/(SIA) CODE SHARE. (DLH) HAS OFFERED TO ACQUIRE 14% STAKE IN (TII) TO KEEP IT WITHIN STAR (SAL) ALLIANCE.
MARCH 2000: CODE SHARE WITH SWISSAIR (SWS) TO ZURICH. IN 5/00, TO MUMBAI (A330, 4/WEEK).
GOVERNMENT OK'S 23% SHAREHOLDING SALE, INCLUDING 10% TO AN AIRLINE INVESTOR, TO LEAVE GOVERNMENT WITH 70%, & 7% PUBLIC INVESTMENT.
INVESTS $135 MILLION FOR 3-YEAR UPGRADE OF IN-FLIGHT FACILITIES, AND ENTERTAINMENT SYSTEM, IN (F) & (C)-CLASS, FOR 40 WIDE BODY AIRPLANES.
APRIL 2000: 24,071 EMPLOYEES.
TO LAMPANG AND PETCHBUN.
1999 = +$134 MILLION.
JUNE 2000: CODE SHARE WITH SWISSAIR (SWS) TO ZURICH.
2 ORDERS 747-400. PLANS TO RETIRE ITS 4 MD-11'S, BY THE END OF 2002.
JULY 2000: FY 1999 = +$140 MILLION (+$204 MILLION): 38.53 BILLION RPK (PASSENGER TRAFFIC) (+11.9%); 72.7% LF; 1.67 BILLION FTK (FREIGHT TRAFFIC) (+9.7%); 16.59 MILLION PASSENGERS (PAX) (+6.3%); 24,121 EMPLOYEES.
1999 TOP WORLD AIRLINES COMPARISON:
PASSENGER TRAFFIC (RPK) (B): 16 TWA 41,9; 17 CAT 41.5; 18 ACN 39; 19 TII 38.5; 20 ALI 36.7; 21 KAL 36.7; 22 IBE 35.4.
NET PROFIT ($MILLION): 19 JAL 187; 20 SWS 171; 21 IBE 154; 22 ACN 147; 23 TII 140; 24 ANZ 114; 25 ANS 104.
EMPLOYEES (K): 15 SIA 27.4; 16 KLM 27.3; 17 SAS 25.8; 18 TII 24.1; 19 QAN 23.4; 20 ACN 23.
FREIGHT TRAFFIC (FTK) (BILLION): 18 MTH 2.06; 19 DAL 1.98; 20 SWS 1.95; 21 LAN 1.74; 22 TII 1.67; 23 BEJ 1.64; 24 ALI 1.61; 25 EAF 1.58.
1 A330-323X (346, HS-TEM "JIRAPRABHA") DELIVERY (PW4168A).
AUGUST 2000: 1ST 9 MONTHS FY 2000 = +$214 MILLION (-31%). 2ND Q = -$29.25 MILLION (+$64 MILLION): DUE TO FUEL COSTS & FOREIGN EXCHANGE LOSSES.
A310-200 (CF6-80C2A2) (424), SOLD TO CABOT AVIATION, UK AFTER "C" CHECK.
SEPTEMBER 2000: BHISIT KUSLASAYANON, PRESIDENT, REPLACES THAMNOON WANGLEE, WHO RETIRED.
POSSIBLE 2 ORDERS (5/01) 747-400'S.
OCTOBER 2000: 24,121 EMPLOYEES (INCLUDING 839 FLIGHT CREW (FC), 3,892 CABIN ATTENDANTS (CA), & 4,192 MAINTENANCE TECHNICIANS (MT)) (+.2%).
EXPECTED TO ORDER 4 747-400'S & 1 777. 1 777-3D7 (TRENT 892) (304-29213, HS-TKE) DELIVERY.
NOVEMBER 2000: SRISUK CHANTARANGSU, EX-CHAIRMAN COMMUNICATIONS, IS EXPECTED TO BE NEW CHAIRMAN IN 12/00.
NONG NGU HAO INTERNATIONAL AIRPORT, NAMED SUWANNABHUMI (GOLDEN LAND), COST $5 BILLION, AND IS SCHEDULED TO OPEN IN 2004.
6TH 777-3D7 (310-29214, HS-TKF) DELIVERY.
DECEMBER 2000: FOLLOWING PROTESTS FROM WORKERS, THAI INTERNATIONAL (TII) AGREES TO NOT PRIVATIZE ITS ENGINEERING & MAINTENANCE DIVISION.
SRISOOK CHANGDRANGSU, CHAIRMAN, REPLACES MAHIDOL CHANTRANGKURN.
PLANS TO SPEND $1.35 MILLION TO IMPROVE PASSENGER (PAX) SEATS ON (TII) 777'S.
FY 1999 = +$134.5 MILLION: 74.5% LF (LOAD FACTOR) (+1.8), 17.7 MILLION PASSENGERS (PAX) (16.3 MILLION). 1ST 9 MONTHS = 31.26 BILLION RPK (+9.9%); 1.25 BILLION FTK (+1.4%); 13.27 MILLION PAX (+9.1%).
CODE SHARE WITH ALL NIPPON AIRWAYS (ANA), TO TOKYO.
TOP WORLD AIRLINES 1ST 9 MONTHS PASSENGER TRAFFIC RPK (B):
12 KLM 45.91; 13 CAT 35.36; 14 TWA 33.56; 15 TII 31.26; 16 KAL 30.99; 17 IBE 30.21; 18 AMW 23.12; 19 VAA 22.08.
JANUARY 2001: 2 ORDERS (5/01) 747-400'S.
2000 TOP WORLD AIRLINES PASSENGER TRAFFIC RPM (B):
15 KLM 37.49; 16 ANA 36.07; 17 CAT 29.27; 18 TII 26.25; 19 ALI 25.24; 20 KAL 25.15; 21 IBE 24.87.
FEBRUARY 2001: 4TH Q 2000 = -$43 MILLION.
MARCH 2001: ACCDT: 737-4D7 (2113-25321, /91 17 20 HS-TDC) DESTROYED BY BOMB AT BANGKOK INTERNATIONAL AIRPORT TERMINAL = 1 CABIN ATTENDANT (CA) FATALITY.
APRIL 2001: CHAI-ANAN SAMUDDAVANIJA, CHAIRMAN.
JANUARY 2001: CODE SHARE WITH LUFTHANSA (DLH), TO MUNICH (747-400, 3/WEEK).
APRIL 2001: 24,148 EMPLOYEES.
1 747-4D7 (HS-TGA) DELIVERY.
JUNE 2001: 1ST Q = +$19 MILLION: 4.05 BILLION RPK (+18.3%), 130.35 MILLION FTK (+4.8%), 1.68 MILLION PAX (+14.3%).
1 747-4D7 DELIVERY.
SEPTEMBER 2001: SOMCHAINUK ENGTRAKUL, ACTING PRESIDENT.
IN 10/01, TO SUKHOTAI - LUANG PRABANG (LAOS) (3/WEEK). ALSO, TO CHIANGMAI - JINGHONG (CHINA) (3/WEEK).
OCTOBER 2001: IN 1/02, TO CHENGDU, CHINA (737-400, 3/WEEK). CODE SHARE WITH VIETNAM (VIE) TO DA NANG. TO CHENGDU/MUMBAI (A330-300, 3/WEEK).
VIRABONGSA RAMANGKURA, CHAIRMAN.
NOVEMBER 2001: FY 2000 = +$43.83 MILLION (-59%), DUE TO HIGHER FUEL COSTS, AND FOREIGN EXCHANGE LOSSES.
DECEMBER 2001: RECEIVES (FAA) CERTIFICATION FOR 747-400, MAINTENANCE, REPAIR & OVERHAUL (MRO), UTAPAO FACILITY.
JANUARY 2002: HIS MAJESTY THE KING, LAID THE FOUNDATION STONE FOR THE NEW AIRPORT, PASSENGER TERMINAL AT NONG NGU HAO, NAMED SUVAMABHUMI AIRPORT, TO OPEN IN 2005. THE 563,000 SQ M PASSENGER TERMINAL WILL HAVE THE CAPACITY TO HANDLE 8,550 PASSENGERS/HOUR, OR 43 MILLION/YEAR.
2001 TOP 50 WORLD AIRLINES - PASSENGER TRAFFIC BILLION RPM
1 UAL 116.60; 2 AAL 106.15; 3 DAL 97.60; 4 NWA 73.11; 5 BAB 64.24; 6 AFA 59.54; 7 CAL 58.76; 8 DLH 56.76; 9 JAL 50.77; 10 USA 45.93; 11 SWA 44.50; 12 SIA 42.76; 13 QAN 42.14; 14 ACN 41.49; 15 KLM 35.76; 16 ANA 33.16; 17 CAT 27.81; 18 TII 27.43; 19 IBE 25.64; 20 KAL 23.73; 21 ALI 22.45; 22 MAS 22.29; 23 AMW 19.06; 24 VAA 17.65; 25 VAR 16.02; 26 CHI 16.00; 27 EAD 14.37; 28 SAS 14.26; 29 ANZ 13.54; 30 SAA 12.70; 31 SVA 12.56; 32 BEJ 12.39; 33 ASA 12.23; 34 JAS 10.06; 35 THY 9.35; 36 AMX 8.51; 37 PAL 8.36; 38 GIA 8.15; 39 CMA 7.99; 40 ELA 7.79; 41 GUL 7.65; 42 PIA 7.24; 43 AIN 7.10; 44 TAP 6.43; 45 EGP 5.53; 46 OLY 5.24; 47 AUL 5.06; 48 FIN 4.93; 49 IND 4.52; 50 CQT 4.51.
MARCH 2002: KANOK ABHIRADEE, PRESIDENT.
(TELEPHONE: (2) 513 01 21). (FAX: (2) 513 01 83).
TO PUSAN (SOUTH KOREA) (A300), AND TO KUWAIT, VIA DUBAI (A330).
APRIL 2002: 25,656 EMPLOYEES.
MAY 2002: 5th anniversary of Star Alliance: (ACN); (ANZ); (AUL);(BMA); (CMA); (DLH); (LAL); (SAS); (SIA); (TII); Tyrolean; (UAL); & VAR).
VIRABONGSA RAMANGURA, CHAIRMAN RESIGNS TO AVERT THREATENED PILOT STRIKE.
THAI INTERNATIONAL (TII) TECHNICAL SERVICES SAYS USE OF (GE AE) 6 SIGMA, QUALITY PROGRAM, HAS SAVED -$23 MILLION SINCE 1999.
1ST Q = +$110.1 MILLION/+#4.72 BILLION BAHT (+#790 MILLION BAHT).
THAI GOVERNMENT STILL OWNS 93%, BUT PLANS TO CUT ITS STAKE TO 70%.
5-YEAR, HEAVY MAINTENANCE CONTRACT, FOR JAPAN AIR SYSTEM (JAS) 39 A300/-600'S.
June 2002: THAI INTERNATIONAL (TII) GROUP 2001 = +$43.44 MILLION (+$115.37 MILLION): 44.04 BILLION RPK (+3.9%); 18.27 MILLION PAX (+1.3%); 1.67 BILLION FTK (-2.6%); 25,000 EMPLOYEES (+3.5%).
Expands code share agreement with Japan Airlines (JAL) to include domestic flights in Japan and Thailand.
2001 Top World Airlines by Passenger Traffic (RPK B):
1 UAL 187.67; 2 AAL 170.88; 3 DAL 163.66; 4 NWA 117.66; 5 BAB 106.27; 6 CAL 98.37; 7 AFA 94.42; 8 DLH 86.70; 9 JAL 84.27; 10 USA 73.93; 11 SWA 71.59; 12 SIA 69.15; 13 QAN 67.89; 14 ACN 67.03; 15 KLM 57.85; 16 ANA 56.90; 17 CAT 44.79; 18 TII 44.04; 19 IBE 41.30; 20 KAL 38.45; 21 MAS 38.31; 22 ALI 36.52; 23 SWS 32.98; 24 TWA 31.85; 25 AMW 30.69.
July 2002: Thanong Bidaya, Chairman succeeds Virabongsa Ramangkura, who resigned. Thanong was Thailand's Finance minister, and a former member of Thai International (TII)'s board of directors.
August 2002: 2nd Q = +# 9.23 Billion Baht/+$82.1 Million (+# 2.71 Billion Baht). 1st 6 months = 23.53 Billion RPK (+5.2%); 9.24 Million PAX (-.7%); 872.51 Million FTK (+5.6%).
In 11/02, to Bahrain, Abu Dhabi, Geneva, and Xiamen (3/week). Frequencies will be boosted to Beijing, Busan, Chengdu, Frankfurt, Hanoi, London, Melbourne, and Tokyo, via Phuket.
3 orders 747-400's, 1 order A330-300; & 8 orders A340-500/-600's.
October 2002: To Athens - Geneva. In 12/02, to Chiang Mai - Chittagong. In /03, to Johannesburg. Considering service from Chiang Mai, to Bagan, Calcutta, Chengdu, Chiang Rung, Hanoi, Luang Prabang, Mandalay, Vientiane, and Yangon.
Code share with Phuket Airlines (PHK) to Ranong, Phuket, Mandalay, and Mai - Bagan.
2 orders (2/03) 747-400LR's.
November 2002: FY 2001 = +# THB10.18 Billion/+$234 Million (+# THB 1.93 Billion), due to foreign exchange gains and lower expenses. 1st 9 months = +# 9.23 Billion Baht (-# 195 Million Baht): 36.28 Billion RPK (+7.5%); 13.89 Million PAX (+.3%); 1.33 Billion FTK (+8.2%).
1st 9 months Top World Airlines Passenger Traffic RPK Billion:
1 AAL 148.39; 2 UAL 132.89; 3 DAL 123.75; 4 NWA 88.26; 5 BAB 76.23; 6 AFA 74.00; 7 CAL 73.12; 8 DLH 67.07; 9 SIA 55.60; 10 SWA 55.20; 11 JAL 54.81; 12 ACN 54.41; 13 USA 50.38; 14 KLM 48.87; 15 QAN 43.76; 16 TII 36.28; 17 CAT 36.14; 18 IBE 30.78; 19 KAL 28.06; 20 AMW 23.82; 21 ALI 19.68; 22 SAS 18.82; 23 CHI 18.23; 24 VAR 17.47; 25 GUN 17.21.
December 2002: Bangkok - Wuhan (Charters).
Likely 9 orders 747-422 (PW4056), ex-United Airlines (UAL). Exercises purchase option on A300B4-600.
January 2003: Will form a low-cost, no-frills carrier to support the government's plan to develop Chiang Mai, Phuket, and Ubon Ratchathani, as regional hubs.
Bangkok - Chiang Mai - Chittagong, Bangladesh (737-400, 3/week). In 2/03, code share with Myanmar Airlines (BRM), Bangkok - Yangon.
February 2003: 4th Q 2002 = +# THB 3.51B/+$91.42M (+234%) (+# THB 1.05B).
Confirms 9 orders 747-422 from bankrupt United Airlines (UAL) for $330M, with delivery of 3 in 2003.
March 2003: Thai Air Cargo service Bangkok to Shanghai (in cooperation with Qantas (QAN) and Singapore Airlines (SIA), using a DC-10-30F or MD-11F, Gemini Air Cargo (GMN) wet-leased.
April 2003: 25,656 employees.
May 2003: 1st Q = +# THB 4.787B (+$110M (+1.35%).
Varig (VAR) Engineering & Maintenance (VEM) has heavy maintenance contract for "D" checks on 2 MD-11's of Thai International (TII) at Rio de Janeiro.
(LOI) 8 orders (2/04) A340-500/-600's.
June 2003: Receives Indian authority to add service to Bangalore, Bodi Gaya, Guahati, Madras, & Varanasi.
July 2003: 25,500 employees. (http://www.thaiairways.com).
2002 = +$236M (+$43.7M): 46.57B RPK (+3.1%); +4.5% ASK; 73.7% LF (-1); 18.3M PAX (-1.6%); 1.77B FTK (+4.5%).
2002 TOP 25 WORLD AIRLINES - PASSENGER TRAFFIC - B - RPK
1 (AAL) 195.81; 2 (UAL) 176.15; 3 (DAL) 152.66; 4 (NWA) 115.91; 5 (BAB) 99.71; 6 (AFA) 96.80; 7 (CAL) 95.51; 8 (DLH) GROUP 88.57; 9 (JAL) 83.54; 10 (QAN) 75.23; 11 (SWA) 73.05; 12 (SIA) 71.12; 13 (ACN) 69.42; 14 (USA) 69.42; 15 (KLM) 58.89; 16 (ANA) 52.97; 17 (CAT) 49.04; 18 (TII) 48.51; 19 (KAL) 41.80; 20 (IBE) 40.47; 21 (MAS) 36.90; 22 (AMW) 31.98; 23 (SAS) Group 30.91; 24 (EAD) 30.17; 25 (ALI) 29.84.
2002 TOP 25 WORLD FREIGHT CARRIERS - (BILLION) - (FTK):
1 (FED) 13.20; 2 (LUB) 7.16; 3 (UPS) 6.62; 4 (KAL) 6.25; 5 (SIA) 6.08; 6 (AFA) 4.87; 7 (CAT) 4.85; 8 (CHI) 4.60; 9 (JAL) 4.39; 10 (CLX) 4.16; 11 (BAB) 4.12; 12 (KLM) 3.99; 13 (EVA) 3.28; 14 (NWA) 3.24; 15 (AAL) 2.93; 16 (UAL) 2.79; 17 (AAR) 2.75; 18 (NCA) 2.21; 19 (POA) 1.97; 20 (EAD) 1.96; 21 (MAS) 1.92; 22 (BEJ) 1.88; 23 (TII) 1.824; 24 (DAL) 1.823; 25 (ACN) 1.58.
Selects NetAdvance. the Lufthansa (DLH) Systems solution for analysis of worldwide traffic flow and booking origins. NetAdvance is a module of (DLH) Systems' Advance product suite, which structures and prepares flight bookings of all travel agencies and airlines acccording to specific customer requirements on the basis of Market Information Data Tapes.
Code share with British Midland (BMA)), London to Bangkok and to 7 destinations in the UK.
In 2003-11, government intends to reduce its shareholding to 70% by offering 300 Million new shares to the public to raise THB 15 Billion/$357 Million, while the finance ministry will divest 100 Million shares from its holdings.
August 2003: Government OK's $1.4 Billion for 7 orders of 5-year old 747-400's from United Airlines (UAL), 3 orders (2004-02) A340-500's and 5 orders (2004-02) A340-600.
2002 FISCAL YEAR (FY) = +$234.90 MILLION (+$44.50 MILLION): 48.51 BILLION (RPK) (+10.2%); 74.7% LF; 18.73 MILLION (PAX) (+2.5%); 1.82 BILLION (FTK) (+9.2%).
Will change business class (C) seating on its 777-200's to 2-2-2 and in economy (Y) to 3-3-3.
September 2003: To assign 2 737-400's to the new low-fare Thai Airline, who will operate from Bangkok to Chiang Mai, Chiang Rai, Phuket, Hat Yai, Khon Kaen; Ubon Ratchathani, and Udon Thani. (TII) intends to hold at least 25% but no more than a 49% share in this low-fare domestic airline.
Also, new charter startup, ThaiJet from Bangkok/Phuket, with 3 757-200's (22688; 22689; 22983), AtlasJet (ABE) wet-leased, and 1 order (2004-01) 767.
In 2003-10, Chiang Mai - Yangon (ATR72, 3/week). Bangkok - Chennai (4/week). Chiang Mai - Tokyo (Narita) (3/week). Chiang Mai - Bangkok - Tokyo. Phuket - Melbourne - Sydney (3/week). Phuket - Osaka (Kansai) (3/week). Chiang Mai - Hong Kong-Taipei (3/wek). In 2003-11, Chiang Mai - Luang Prabang (ATR72, 3/week). Bangkok - Luang Prabang (3/week). In 2004-01, Bangkok - Guilin (2/week), return via Chiang Mai.
October 2003: 747-4D7 (33770, HS-TGF "Sri Ubon") delivery.
November 2003: Will sell 385 Million shares of its stock comprising 100M existing shares held by the Ministry of Finance (MOF) and 285 Million newly issued shares. The (MOF) will release an additional 57.75 Million shares for investors "who wish to make large lot subscriptions." Proceeds will be used "as working capital for the Suvarnabhumi Airport investment project and for upgrading in-flight services ranging from passenger seats to other amenities." After the offering the government's share in the airline will fall from 93% to 70%.
Code share with China Airlines (CHI), Kaohsiung - Bangkok (10/week: 7 by (CHI) & 3 by (TII).
December 2003: Raised THB 22.15 Billion through its initial public offering (IPO) of 285M new shares and the sale of another 157.75 Million shares held by the Finance Ministry, at a price of THB 50 each. The government's holding in Thai International (TII) was reduced from 93% to 67.8%.
757-225 (22688, TC-OGA) & 757-2G5 (23983, TC-OGC), AtlasJet (ABE) leased to ThaiJet.
January 2004: Star (SAL) Alliance (Thai International (TII) as one of 15 members) signed a 5-year Information Technology (IT) accord with BEA Systems Inc, San Jose, Calif, an application infrastructure software firm. The contract gives Star's 15 members "the opportunity to introduce BEA's innovative application platform suite at a cost no single airline would be able to negotiate" said Michael Stagl, Star CIO. Unite Airlines (UAL), Lufthansa (DLH), & Singapore Airlines (SIA), as well as the alliance itself, have developed ticketing, baggage handling, and loyalty software applications on the BEA WebLogic platform in recent years. Under the new agreement, BEA WebLogic Server and BEA WebLogic Integration become Star's preferred application server and integration software.
4th Q = +# THB 4.35B/+$110M (+24%): 73.2% LF (+1.2). 2003 = +# THB 12.45B (+22.3%).
Will call its new low-cost subsidiary "Sky Asia." Thai International (TII) owns a 49% stake) and plans to launch in 4/04.
February 2004: In 3/04, Bangkok - Bangalore (A300, 4/week). Bangkok - Jihong (Xixongpanna) (ATR72, 2/week). In 5/04, Bangkok - Milan (MXP) (747-400, 2/week).
Changes launch date of its low cost subsidiary to 6/04, and renames it from "Sky Asia" to "Nok Air" (Nok = Bird). Patee Sarasin, (CEO). Will operate 2 737-400's, initially from Bangkok to Chiang Mai, Hat Yai, Khon Kaen, Phitsanulok, Phuket, and Udon Thani.
Plans to establish an air cargo subsidiary in 2005 in which it will hold a 49% stake for an investment of THB 5B.
Selects Rockwell Collins for its avionics installations on 3 A340-500's & 5 A340-600's, including GLU-920 Multi-Mode Receivers & WXR-2100 Multiscan Weather Radar and other products.
United Arab Emirates (UAE) and Thailand signed an open skies agreement allowing carriers of both countries full traffic rights to operate any type of airplane and flight frequency between the two countries and beyond. Thai International (TII) operates 11 weekly services, while Emirates Airlines (EAD) and Gulf Air (GUL) have 14 and 11 respectively.
Offer to buy 7 United Airlines (UAL) 747-400's was rejected.
March 2004: Code share with Aerosvit (UKA), Kiev - Bangkok (weekly).
Bangkok - Bangalore (A300, 4/week); - Jihong (Xixongpanna) (ATR72, 2/wek).
May 2004: Selects DMX Inflight, a unit of DMX Music, to provide inflight entertainment programming services, including audio, short-subject video, feature films and televison shows from around the world.
Bangkok - Milan (MXP) (747-400, 2/week). Code share with Spanair (SPP), Bangkok - Chang Mai, Krabi, and Phuket, plus Madrid - Barcelona, Bilbao, Palma de Mallorca, & Valencia. Code share with Qatar (QTA), Bangkok - Doha.
Star Alliance: Air Canada (ACN); Air New Zealand (ANZ); All Nippon Airways (ANA); Asiana (AAR); Austrian (AUL); Blue 1 (applicant); bmi (BMA); (LOT) Polish Airlines; Lufthansa (DLH); Scandinavian (SAS); Singapore Airlines (SIA); South African Airways (SAA) (applicant); Spanair (SPP); (TAP) Air Portugal (applicant); Thai Airways (TII); United Airlines (UAL); US Airways (USA); & Varig (VAR).
1st Q = +# THB 5.32B/+$130.3M (+11%): 13B RPK (+5.8%); 73.6% LF (+.7); 5.09M PAX; 441.45M FTK (-2.3%).
June 2004: Plans to lease 747-400's to 2 Star Alliance members during its low traffic season to help decrease its maintenance costs.
In 2005, to introduce Bangkok to San Francisco, Moscow, & Johannesburg (A340-500/A340-600, 3/day) & to New York (6/week).
2 737-4D7's (24830, HS-TDA; 24831, HS-TDB), wet-leased to low-cost subsidiary, Nok Air (NKA).
July 2004: Projects net profits of +# 20 Billion Baht/+$483 Million/year over the next 5 years.
In 2005, Bangkok to Johannesburg, Moscow, New York, & San Francisco.
(MOU) with Pakistan International Airways (PIA) covering optimum utilization of frequencies and code sharing.
6 orders 777-200's, 1 order A340-500, 1 order A340-600, & 6 orders A380's.
August 2004: 2nd Q = -# 836.33M baht/-$20.12M: +45% RPK (reflecting full recovery from (SARS); +20% fuel expense; exchange losses & other higher costs. 1st 9 months FY = +# THB 8.8B/+$216M. Projects FY 2003 (ending 9/04) = +$350M.
+6 orders A380's, with operations on major trunk routes from Bangkok's new Suvarnbhumi airport to destinations in Europe.
October 2004: Will unveil a new color scheme in 3/05 with delivery of its A340-600, which will be the 1st of its fleet to introduce a revamped cabin. A revised logo will feature the purple "jumpee" (Michelia longifolia), an Oriental fragrant flower.
December 2004: FY 2004 = +# TH Billion 10.08 Billion.
737-4D7 (2330-26612, HS-TDE) wet-leased to Nok Air (NKA).
March 2005: Star Alliance partners (TAP) Air Portugal, All Nippon (ANA), bmi (BMA), Lufthansa (DLH), Thai International (TII), Adria Airways (ADR), & Scandinavian Airlines (SAS) will all start using Terminal 1 at Paris Charles de Gaulle (CDG) which will have 8M passengers/year and will become a minihub for these carriers.
In 5/05, Bangkok - New York (A340-500, 215 PAX, nonstop.
2 A340-541's (624, HS-TLA) deliveries.
June 2005: 2 A340-642's (677, HS-TNA; 681, HS-TNB), deliveries.
July 2005: Code share agreement with Royal Jordanian Airlines (RJA) for Thai International (TII) service to Singapore, Kuala Lumpur, Shanghai, & Beijing, and for Royal Jordanian Airlines (RJA) services to Amman.
August 2005: 25,884 employees (+1.4%).
Government's Prime Minister has suspended Kanok Abhiradee, President's management authority and assigned Somchainuk Engtrakul, with the management duties during this current fuel crisis.
Thai Airways International (TII) said it will slash loss-making routes and restructure its foreign operations in a bid to turn its fortunes around. Low-cost subsidiary Nok Air (NKA) is set to be the big winner by picking up a number of domestic routes. The announcement came less than two weeks after President Kanok Abhiradee was suspended from day-to-day responsibility for managing the airline in the wake of a 7B baht/$171M loss for the June quarter. Another focus of the restructure is a greater attention to the business class market - - a process begun by Kanok - - and thus the carrier has decided it will not defer two A340-600s due for delivery this year. The airplanes are fitted with Thai's new in-flight product.
September 2005: USA and Thailand reached agreement "on a comprehensive open skies framework to expand and liberalize their bilateral aviation relations." The accord was reached in Washington Friday and will provide for "open routes, capacity, frequencies, designations and pricing, as well as cooperative marketing arrangements including codesharing."
USA Transportation Secretary Norman Mineta and Thai Minister of Foreign Affairs Kantathi Suphamongkhon signed the open-skies aviation agreement in Washington yesterday. The accord, which was finalized earlier this month, lifts restrictions on the number of passenger services that may be operated between the countries but has a five-year phase-in period for pricing and some beyond-country services.
Austrian Airlines (AUL) and Thai Airways (TII) have started interlining with e-tickets.
October 2005: 1st 9 months = Passenger traffic 36.94B (RPK) (-2.4%); Freight traffic 1.47B (FTK) (+8.1%); 13.12M passengers (-9.2%).
Thai Airways (TII) will launch 2x-weekly service between Bangkok and Moscow Domodedovo Nov 1 using MD-11s. According to Australian sales executives at the airline, "load factors on the New York service have been solid at close to 80% LF, but the cost of fuel and price competition has made the service marginal." (TII) will reduce USA service as it is not happy with the performance on these routes. On Dec 1st it will reduce the frequency on its Bangkok to New York route from 6 to 4 flights a week while cutting Bangkok to Los Angeles from 4 to 3x-weekly, however that flight will go nonstop instead of via Japan. (TII) will also revise its Bangkok - Auckland - Sydney route on the same date into a daily Bangkok - Auckland and daily Bangkok - Sydney service.
Bangkok's new Suvarnabhumi Airport last week received its first flight, a Thai International (TII) A340-600, in the presence of Thai Prime Minister Thaksin Shinawatra.
Highlights of (TII)'s winter scheduled which starts on Oct 30th includes the start of Bangkok - Moscow service on Nov 1st with 3 MD-11 flights a week. Bangkok - Islamabad service starts on Nov 2nd with 2 A300-600 flights a week. Bangkok - New York (JFK) will reduce from 6 to 4 a week on Dec 1st. Bangkok - Los Angeles will reduce from 4 to 3 but will go nonstop with an A340-500. Bangkok - Frankfurt goes from 13 to 14 a week on Oct 30 while Copenhagen goes from 6 to 7 and Stockholm from 5 to 6 a week. Bangkok - Auckland will go from 3 to 7 flights a week on Dec 1st with A340-600 and so will the Bangkok - Sydney route on the same date.
Thai Airways (TII) has raised its fourth-quarter fuel hedges. Reuters reported that the carrier increased its cover to 22% at $71 a barrel from 15% at $74 per barrel last quarter.
Thai International (TII) announced that it will replace its four MD-11s with A340-600s. The MD-11s will leave the fleet by March 2006.
A340-541 (698, HS-TLC), & 2 A340-642's (689, HS-TNC; 710, HS-TND), deliveries.
November 2005: Thai Airways (TII) will launch service this month connecting Danang to Moscow via Bangkok. (TII) launched semiweekly direct service between Bangkok and Islamabad with A300-600s.
All Nippon Airways (ANA) will move into the new South Wing of Narita Airport Terminal 1 in June 2006, along with fellow Star Alliance members Air Canada (ACN), Asiana Airlines (AAR), Austrian Airlines (AUL), Lufthansa (DLH), Scandinavian Airlines (SAS), Singapore Airlines (SIA), Thai International (TII), United Airlines (UAL), and Varig (VAR).
(ARINC) also signed with Thai Airways International (TII) to provide its MUSE Link managed IP network service for the carrier's operations in Bangkok and six additional international airports.
Plans to remove its 4 MD-11's from service in 1st Q of 2006. They are currently used on routes from Bangkok to Australia, Milan and Zurich, are expected to be replaced by new A340-600's entering the fleet.
A340-643 (710, HS-TND), delivery. 737-4Z6 (27906, HS-CMV), ex-Royal Thai Airforce (TAF), for use by HRH Crown Prince Maha Vajiralongkorn.
December 2005: Thai Airways (TII) concluded its fiscal year at the end of September with a net profit of +6.78 billion baht/$164.3 million, a -32.7% drop from a year-ago profit of +THB10.08 billion, which the company attributed to fuel costs and a decline in tourism resulting from "unrest in southern Thailand, the terrorism in other countries and the concern of a bird flu epidemic."
Annual revenues rose +7.2% to THB164.92 billion on a -1.4% drop in passenger traffic (RPK)s and steady capacity (ASK)s. Load factor decreased -1 point to 71.5% LF. A -7.2% decline in passenger numbers to 18.13 million was a result of the Dec 26, 2004, tsunami, the carrier said. Passenger yield rose +3% to THB2.41. Cargo traffic grew +8% (FTK) but yield fell -4.9% to THB10.45. Expenses climbed +11.8% to THB150.81 billion, which included a +50.1% jump in fuel costs to THB46.1 billion, representing 30.4% of Thai's operating expense.
The bottom line was boosted by a strong fourth quarter. The carrier posted net earnings of +THB2.35 billion in the three-month period compared to +THB1.48 billion in the year-ago quarter, an improvement of +58.6%.
China Eastern Airlines (CEA) and Thai Airways International (TII) have become codeshare partners, with joint services between Shanghai and Bangkok. (CEA) is adding its code to A330-300 services operated by (TII), while (TII) is adding its code to A321 & A340-600 services operated by (CEA).
Thai Airways (TII) signed a contract to manage the Shah Amanat Airport in Chittagong, Bangladesh, a 10-year deal valued at BDT529 million/$9 million. The contract gives Thai (TII) the operational, managerial and maintenance responsibility for the airport terminal, ramp and cargo handling operations and airport security.
A340-642 (719, HS-TNE), delivery.
January 2006: Gulf Air (GUL) and Thai Airways (TII) signed a codeshare agreement covering Thai (TII)'s services from Bangkok to Muscat, Phuket and Chiang Mai and Gulf Air's services from Bangkok to Bahrain and Muscat. Gulf Air (GUL) VP-Network Fareed Al Alawi said the carrier will continue to expand into the Asia/Pacific region.
Thai Airways International (TII) will reduce the number of flights it operates from Bangkok to Trang from 7 to 2 a week and assign its low cost Nok Air (NKA) to operate the route instead. Nok Air (NKA) will increase its number of flights on the route from 7 to 9 a week while Thai (TII) would continue to operate a flight on Friday & Sunday. Thai Airways International (TII) will cancel direct flights from Pukhet to Sydney and Melbourne on February 1st. The airline operated 3 flights a week using a 747-400 but loads have been below the break even point.
737-4D7 (26611, HS-TDD), wet-leased to Nok Air (NKA).
February 2006: Nok Air (NKA) signed a codeshare deal with Thai Airways International (TII) that will increase its four-times-daily Bangkok - Chiang Mai service to 14 daily flights.
Thai Airways International (TII) announced it will inaugurate service from Bangkok to Johannesburg in October. The airline plans to operate 3 flights a week. Thai (TII) will also increase the frequency on its New York route, currently operated 4x a week, and Los Angeles route, currently operated 3x a week. Thai Airways International (TII) will increase the frequency on its Bangkokg to Chittagong (Bangladesh) route for the summer schedule. Currently, the airline operates 3 flights a week, on Wednesdays, Fridays, & Sundays, with a 737-400. From April to September 2006, Thai (TII) will operate an A300-600.
Messier Services secured 777 landing gear Maintenance Repair & Overhaul (MRO) contracts with Malaysia Airlines (MAS) and Thai Airways International (TII) covering nine and 14 shipsets respectively. In addition, Boeing selected Messier Services Asia Pte as an approved facility for landing gear and component repair and overhaul.
Thai Airways (TII) released details of its fiscal first quarter performance, confirming it earned a net profit of +THB3.81 billion/+$96.7 million in the three months ended Dec 31, a -33.4% decrease from the +THB5.72 billion earned in the year-ago quarter. Revenues totaled THB45.88 billion, an increase of +6.5%. But expenses climbed +10.3% to THB40.59 billion owing to capacity growth and a +29.3% jump in fuel costs, according to the carrier. Thai (TII) launched service to Moscow and Islamabad during the quarter and boosted frequencies on European and Oceanic routes. Other expenses fell, the airline said, leaving operating profit at +THB5.29 billion, a decrease of -15.4%.
Star Alliance member carriers at Paris (CDG) Terminal 1 have begun moving into new check-in Hall 4, the alliance announced last week. Thai Airways (TII) and bmi (BMA) already are using the new Star Alliance facilities and Adria Airways (ADR), All Nippon Airways (ANA), Croatia Airlines (CRH), (LOT) Polish Airlines, Lufthansa (DLH) and (SAS) Scandinavian Airlines will relocate by the end of the month. There are 24 check-in desks currently available. Singapore Airlines (SIA), United Airlines (UAL), US Airways (AMW)/(USA) and Varig (VAR) will start making use of the new facilities in 2008 once additional areas of the terminal are refurbished. Star Alliance-branded self-service check-in units will become available in March to customers of select alliance carriers.
March 2006: Thai Airways International (TII) will double the frequency of flights from Bangkok to Pusan (South Korea) from 2 to 4 a week from March 26th. Currently, the airline operates flights on Thursdays, Saturdays, and from that date, it will add flights on Tuesdays, Sundays, with all operated by an A300-600.
April 2006: Thai Airways (TII) and Lao Airlines (LAO) signed a Memo of Understanding (MOU) designed to encourage tourism and travel to Laos while promoting Thailand as the gateway to the peninsula. The carriers eventually will codeshare on the Bangkok - Vientiane and Chiang Mai - Luang Prabang routes, and interline on flights from the USA, Australia, France and Japan into Laos.
Thai Airways International (TII) announced it plans to increase the number of flights to Europe, the USA and within Asia, especially to India. Thai (TII) will operate more flights from Bangkok to Madras, Bangalore, Beijing, Shanghai, Chengdu, Nagoya and Fukuoka. Exact increases will be announced shortly. The airline plans to increase nonstop service from Bangkok to Los Angeles from 4 to 6 flights a week in June 2007.
Thai Airways (TII) board elevated Executive VP, Apinan Sumanaseni to President effective May 1, according to a statement from Chairman Wanchai Sarathulthat cited by press reports. Apinan succeeds Kanok Abhiradee, who was suspended by the Thai prime minister and stripped of most of his major responsibilities last summer following heavy financial losses. Apinan started with Thai as a pilot before moving into the front office.
The International Air Transport Association (IATA) has urged Thailand to postpone the opening of Suvarnabhumi Airport to December, even as local authorities insist the new facility will be open for business in July. Thai newspapers said (IATA) member airlines are concerned that they have yet to enter the new building to establish their service systems - - a privilege afforded only to Thai Airways (TII) and Bangkok Airways (PGB) to date. The airport, which is designed to replace the ageing Don Muang facility, has already faced numerous delays, and Thai authorities are insisting that Suvarnabhumi should be open in July, even though they have yet to set an official date. However, they face a potential battle with (IATA), which insists that airlines have at least six months formal notice of the opening of a new airport, and most large airlines need at least three months to prepare their operation space and test their service systems. "There remain only three months to the July opening. This may be inadequate for airlines' preparation work. It is thus in the best interests of everyone to postpone [the opening date] to December,'' an (IATA) source was quoted as saying in the Bangkok Post. There is also confusion about the future of Don Muang, with some airlines expecting it to remain open, but some authorities also saying it would be relegated to a repair facility only. Suvarnabhumi is designed to accommodate 45 million passengers per year.
May 2006: Thai Airways (TII) reported a +78% rise in its fiscal second-quarter profit to +THB6.2 billion/+$164.7 million from +THB3.49 billion in the year-ago quarter, according to a filing submitted to the Thai Stock Exchange cited by press reports. Key to the earnings increase was a +19% rise in sales to THB46.1 billion and a strengthened baht, which resulted in a THB3.86 billion foreign exchange gain. Expenses advanced +20% to THB40.5 billion and load factor climbed +6.1 points to 76.7% LF, as Thai (TII) added four airplanes during the quarter. Thai is raising its fuel surcharges from June 1 to help mitigate a +60% increase in fuel costs.
Thai Airways (TII) and Bangkok Airways (PGB) signed a Memo of Understanding (MOU) to develop coordination further on their respective networks.
Thai Airways (TII) is to launch a new airline to compete with Low-Cost Carriers (LCC)s on regional routes to Laos, Cambodia and Myanmar. According to the carrier's new president, Apinan Sumanaseni, who spoke to the Bangkok Post, the airline will be called "Euarng Luang," which means "Royal Orchid," and will be positioned differently from Nok Air (NKA), Thai Airways (TII)'s own (LCC), in that it will target the market between budget and premium.
Bahrain and Thailand reached an open-skies agreement, allowing designated airlines to offer unlimited flights. Annual air traffic between the countries has been growing at +15% over the past five years.
Thai Airways (TII) chose Sabre's AirFlite Suite to "maximize total network profitability by optimizing their network and fleet structures."
Airports of Thailand (AOT) reported net income of +THB7.1 billion/+$186 million for the first half, a rise of +58.5% on the previous corresponding period. The company, which operates five airports in Thailand, said passenger traffic grew +8.9% (RPK), while revenue from passenger services grew +14.5%. Concession revenue grew +12.4%. A +5.4% increase in airplane movement resulted in a +11.4% growth in landing charges. (AOT) said it plans to invest THB24 billion in its 2006 2007 financial year, mostly on Suvarnabhumi, and reduce some landing fees at Phuket, Chiang Mai and Chiang Rai.
South Korea and Thailand agreed to liberalize passenger services between the two countries. Cargo operations already are liberalized under a 2004 accord. The new agreement comes as the limit of 42 weekly flights previously allowed by each nation's airlines is under strain, with load factors reported at 88% LF.
June 2006: In what All Nippon Airways (ANA) President and CEO, Mineo Yamamoto described as a "great day for (ANA) and the Star Alliance, and the dawn of a new age" for air travel in Japan, 10 of the 11 Star Alliance airlines serving Tokyo Narita begin operating today from co-located facilities in the airport's Terminal 1 South Wing. Star members that moved overnight into the newly rebuilt terminal are (ANA), Air Canada (ACN), Asiana Airlines (AAR), Austrian Airlines (AUL), Lufthansa (DLH), (SAS) Scandinavian Airlines, Swiss International Air Lines (CSR), Singapore Airlines (SIA), Thai Airways (TII), and United Airlines (UAL). Air New Zealand (ANZ), which has a codesharing relationship with Japan Airlines (JAL), remains in Terminal 2.
Bringing the carriers under one roof will result in international-to-international connecting times being reduced more than -50% from 110 minutes to 45 minutes and create "huge opportunities" to develop domestic connections with (ANA), according to Star CEO, Jaan Albrecht. In total, the 10 airlines offer more than 794 weekly flights to 30 destinations in 15 countries from Narita.
Among the many firsts in the spacious and attractive South Wing, are common "zone check-in" areas for all carriers save (SIA), with check-in areas organized by class of travel across the airlines. The hall features a record 126 common-use self-service check-in kiosks and common-use check-in desks. (ARINC) is the technology vendor for both.
Travelers on (ANA), United (UAL), Air Canada (ACN) and Austrian (AUL) can use the kiosks, which are equipped with passport readers. By year end, Star expects passengers on any of the 10 member carriers to be able to check in via the kiosks. The new terminal also offers curbside check-in, a first for Japan, and the country's first baggage reconnecting facility for passengers connecting from an international to a domestic flight.
Additional and upgraded premium lounges are part of the package, as is a new pier with eight attached airbridges. (ANA) has four lounges with shower facilities, which it claims is a first for a Japanese carrier. Its domestic arrivals lounge also is equipped with showers.
This is the third and largest "Move Under One Roof" exercise for Star. Last year, it brought carriers at Paris Charles de Gaulle T1 together and Star members at Centrair near Nagoya also are co-located.
July 2006: Thai Airways (TII) no longer will go forward with the planned launch of Low Cost Carrier (LCC) Royal Orchid Airlines, saying the new carrier is not necessary, after the government ruled that all commercial air traffic must use Bangkok's new Suvarnabhumi Airport. Royal Orchid was slated to be based at Don Muang.
Thai Airways International (TII) will start nonstop service from Phuket to Busan (Korea) in October. The airline plans on operating 2 flights a week.
Jet Airways (JPL) linked its frequent-flier program with those of Austrian Airlines (AUL) and Thai Airways (TII). Jet (JPL) Privilege members can earn and use miles on flights operated by Austrian (AUL) and Thai (TII), whose loyalty program members can do the same on Jet (JPL) flights.
August 2006: Thai Airways (TII) will launch service at the new Suvarnabhumi Airport on September 15 with thrice-daily flights to Phitsanulok, four-times-weekly service to Ubon Ratchathani and thrice-weekly flights to Chiang Mai. Other domestic services will continue to operate from Bangkok International Airport for the time being. Thai (TII) is transferring its operation center to Suvarnabhumi on September 28, the day the airport becomes fully operational after a host of delays.
Thai Airways (TII) is increasing fuel surcharges on flights to Singapore and Bangkok by $5 to $20 and by $8 to $22 respectively effective September 1.
September 2006: Bangkok's new Suvarnabhumi Airport failed critical luggage handling tests Thursday, flagging problems for the scheduled opening on September 28.
Twenty-two airlines participated in tests involving all 460 check-in counters handling 4,000 bags. Breakdowns related to integration of "passenger" data with the airport authority, resulting in problems with the luggage system, while some carriers did not give the authority relevant information.
In addition, it became apparent that some staff had not been trained on the airport's systems, which are state-of-the-art compared to the old Don Muang Airport. Jaturongkapol Sodmanee, Suvarnabhumi's Deputy Director Information Technology (IT), told the Bangkok Post that some of the problems "resulted from participating airlines."
The Airport Authority of Thailand will repeat the tests in the coming weeks. Critics have voiced concerns about the airport's large size and lack of accessible public transport, with passengers required to board a shuttle bus to get to the taxi and bus terminal several km away.
Except for one cancelled Emirates (EAD) Hong Kong - Bangkok flight Tuesday, airline operations into and out of Thailand appear to be operating normally and without disruption despite this week's bloodless military coup.
Coup leader and apparent interim head of state Army Chief, General Sonthi Boonyaratglin said that Bangkok's long-delayed $4 billion Suvarnabhumi Airport will open next week as planned and a similar statement was offered by Airports of Thailand.
Limited operations at Suvarnabhumi already have started with flights this week by Thai Airways (TII) and Jetstar (JSA), while Bangkok Airways (PGB) is scheduled to operate flights from the airport today.
The new airport, which claims to have the world's largest terminal building (563,000 sq m) and tallest control tower and also features a spa and bowling alley, is scheduled to be fully operational by September 27, with most if not all commercial flights to Don Muang Airport ceasing by September 28. However, carriers previously warned ousted Prime Minister, Thaksin Shinawarta that the new airport may not be ready for full-scale operations.
Airlines have expressed concern that the baggage system will have problems, and the facility failed luggage handling tests earlier this month. The airport has been designed to handle 45 million passengers and 3 million tons of cargo annually.
Bangkok's new Suvarnabhumi Airport was set to begin full-scale international and domestic operations at 3 am local time, September 21. First arrival was expected to be a Lufthansa Cargo (LUB) flight 5 minutes later inbound from Mumbai. The first scheduled departure was to be a Saudi Arabian Cargo (SVA) flight to Riyadh. The first passenger flight to arrive was to be VV#171 Aerosvit Airlines (UKA) from Kiev. VV#172 outbound for Kiev will make the first passenger departure.
Some 68 ferry flights were planned for Wednesday from Don Muang Airport, 21 of them operated by Thai Airways (TII). Airports of Thailand said the last commercial flight to depart the old airport was Kuwait Airways (KUW) KU#414 to Kuwait City. It also was set to make the last arrival, inbound from Jakarta.
October 2006: In the first 9 months Thai Airways International (TII) had 53.99 billion (RPK)s passenger traffic (+8.1%) (world 17th highest), 2.05 billion (FTK)s (+3.1%); & 18.57 million passengers (+2.4%).
Smiths Detection said it was awarded a $10 million contract to supply a comprehensive integrated security system for Thai Airways (TII) at the new Suvarnabhumi Airport. Smiths is partnering with (EMC) Group Public Company, a Thai electrical and mechanical engineering contractor.
Thai Airways (TII) will introduce service from Bangkok Suvarnabhumi to Johannesburg, Hyderabad, Gaya and Varanasi for its winter schedule starting October 29. The Johannesburg flight will be operated thrice-weekly aboard an A340-600 and the Hyderabad service will be thrice-weekly aboard an A300-600. Thai (TII) did not provide details on service to the other two Indian destinations.
November 2006: Thai Airways (TII) posted a fiscal year-end profit of +THB9 billion/+$246.7 million, a +32.7% rise over full-year earnings of +THB6.78 billion in the 12 months ended September 30, 2005. Revenues climbed +9.9% year-over-year to THB178.61 billion.
Thai Airways (TII) took delivery of the first of six 777-200ERs it is adding to its fleet this year and in 2007. It will take delivery of three more this year and two in 2007.
3 777-2D7ERs (34586, HS-TJR "Nakhon Sahan;" 34587, HS-TJS "Phra-Nakhon;" 34588, HS-TJT Pathun Wan"), deliveries.
December 2006: The bloodless military coup last September has resulted in the replacement of more than a third of the directors and the appointment of a new Chairman.
777-2DTER (34589, HS-TJU "Phichit"), delivery
January 2007: Airports of Thailand approved the use of Don Muang Airport (DMK) for domestic flights with no international connections beginning in March, according to press reports. Don Muang was to have been closed to commercial traffic in September, when the new Suvarnabhumi Airport opened for business. The "Bangkok Post" said reopening (DMK), which now handles only charter flights, would give airport officials "flexibility" to solve problems at the new facility.
Pavement cracks at Bangkok's Suvarnabhumi International Airport are being cited by politicians as a reason to oust Airports of Thailand (AOT) officials appointed by the deposed Thaksin government, which built the new facility. But a senior member of the airport's professional staff said that the cracks are in a few sections of taxiway, not the runways as claimed by airport critics. Crews have been observed repairing small rough spots, probably caused by water seeping under the pavement, in the taxiway adjoining the airplane ramp. The airport was built on a swamp and Bangkok's annual flooding was unusually severe late last year.
Three separate groups are studying the problem and potential corrective actions. Thai Airways (TII) temporarily has lost use of seven terminal gates because of the repair work, VP Project Development, Chokchai Panyayong at Suvarnabhumi said. He expects the problem to be solved in March or April. He pointed out that the new airport is below the water table, "and this is the first time anything has been built this way in Thailand." (AOT) approved the reopening of the old Don Muang Airport for some domestic flights beginning in March, as a result of problems at Suvarnabhumi.
February 2007: The Associated Press reported that Thai International (TII) posted a +THB4.03 billion/+$119.6 million profit for the first fiscal quarter ended December 31, up +5.8% from the year-ago quarter. Sales rose +5.4% to THB43.37 billion, and costs climbed +5.8% to THB42.93 billion.
Thailand's Dept of Civil Aviation (DCA) postponed renewal of Suvarnabhumi International Airport's safety certification, which expired last week, and originally was issued to comply with (ICAO) efforts to standardize international airport documentation. No Thai airport is currently certificated by (DCA). Although lack of certification has no impact on operations at the new Bangkok airport, Thai politicians are trumpeting it in their campaign to discredit the deposed Thaksin government, which built the facility. Several terminal gates at a time are being closed, because of repairs to pavement cracks, creating some airborne holds and forcing a few flights to divert to U Tapao - - a former US Air Force base now used for charter and cargo operations - - to add fuel before returning to (BKK).
Bangkok Airways (PGB) and Thai AirAsia (THA) have asked that domestic flights be moved back to Don Muang, Bangkok's old international airport, until repairs are completed. A number of other carriers want to use Don Muang, now restricted to General Aviation (GA), charter and maintenance operations, for nonconnecting short-haul trips. Airports of Thailand staff has recommended reopening the airport to scheduled flights.
The Bangkok press, eager to side with the government in power, rarely misses an opportunity to criticize Suvarnabhumi. One popular English-language paper quoted an "expert" who said the runways should be rebuilt on piles so floodwaters can flow underneath. Another paper front-paged a story about a leak from a terminal toilet pipe that caused minor damage to a few pieces of baggage on the floor below.
Airports of Thailand Chairman, Chotisak Asapavirya resigned owing to "ill health." He had been criticized heavily for the pavement cracking problems at Bangkok's $3 billion showcase Suvarnabhumi International. While he said he was not forced out, he told Thai media that he warned authorities not to rush the airport's opening. Meanwhile, Suvarnabhumi's Director & Head of Commercial Operations have been fired. All reportedly were fingered as part of the controversy surrounding construction problems and charges of corruption at the new facility. Pavement cracks are spreading and are affecting both runways and taxiways. The Engineering Council of Thailand estimated that 5.3% of the taxiways, or about 97,000 sq m, are affected.
The Thai Prime Minister, Surayud Chulamont ordered Bangkok's Don Muang International Airport reopened to both international and domestic flights in order to prevent overcrowding at the new Suvarnabhumi International.
He cited increasing traffic at Suvarnabhumi and the need to block some gates to repair cracked airfield pavement. Transport Minister, Theera Haocharoen said decisions about which airlines will move back to Don Muang should be made within two weeks. The airport should be ready for service by April 1.
Thai Airways (TII), Orient Air (OTH), Bangkok Airways, Thai AirAsia (THA), One-Two-Go and Nok Air (NKA) have said they will operate from Don Muang, which can handle 37 million passengers per year. Thai AirAsia (THA) said it will move its entire 80-flights-per-day schedule back to the old facility.
The airports are on opposite sides of Bangkok, 30 km apart, with no direct scheduled public transportation between them. Thai Airways (TII) has said it will operate a shuttle service, when traffic resumes at Don Muang. Hotels and merchants near Don Muang have joined Low Cost Carriers (LCC)s serving the Thai market in pressing for the reopening. It was closed to scheduled traffic when Suvarnabhumi opened in September.
Airports of Thailand executives said that using Don Muang for short-haul traffic will postpone the need to build two more runways and a low-cost terminal at Suvarnabhumi.
Thai Airways (TII) announced that it will buy eight A330-200s to cover a shortfall in capacity, resulting from the A380 delays. Thai (TII) President, Apinan Sumanaseni made the announcement in Bangkok. The airline will receive its A380s in 2011, instead of 2009. Last year, Airbus (EDS) leased 19 A330s to Singapore Airlines (SIA), and sold four A330s to Qantas (QAN) to cover A380 delays.
March 2007: Thai Airways (TII), Nok Air (NKA), One-Two-Go Airlines and Orient Thai Airlines (OTH) will resume domestic operations at Bangkok's old Don Muang Airport on March 25. Thai (TII) moved 29 truckloads of passenger and ground handling equipment back to Don Muang from the new Suvarnabhumi International, where a few gates at a time are being taken out of service to facilitate airfield pavement repairs. Don Muang was closed to scheduled commercial traffic when Suvarnabhumi opened September 28, but the Thai government last month decided to permit some operations at the old facility to take the pressure off the new airport. Several commissions are studying soil and pavement conditions at Suvarnabhumi and will make recommendations to correct underlying problems.
The Thai Airways (TII) board announced approval of the sale of two A300-600s that will leave the fleet by June and the purchase of a 747-400 the airline has been leasing since 1997, when the contract expires in April 2008.
April 2007: (ANA) signed a general terms agreement with Thai Airways (TII) under which Thai (TII) will perform heavy Maintenance Repair & Overhaul (MRO) on 11 (ANA) 747-400s at its new maintenance center at Suvarnabhumi. Work will be completed by next year.
Japan Airlines (JAL) and Thai Airways (TII) expanded their codeshare agreement to include Thai (TII)'s twice-daily Bangkok - Krabi service.
A340-541 (775, HS-TLD), delivery.
May 2007: Thai Airways (TII) reported net earnings of +THB4.23 billion/+$127.5 million in the second fiscal quarter ended March 31, a -31.8% plunge from a profit of +THB6.21 billion in the year-ago period. It did not offer a full explanation, but did say that last year's result was boosted by a strong baht. Revenue climbed +7.6% to THB49.6 billion, costs rose +7.1% to THB43.42 billion, and operating profit was up +10.6% to THB6.18 billion. Profit for the fiscal semester fell -17.5% to THB8.26 billion. Thai (TII) also is projecting a fall in the current quarter "due to the low season and high competition of the aviation industry in Thailand." The airline's board said it requested that management "review the existing route network and company's asset management to increase income and reduce expenses" and to "develop greater service quality."
June 2007: Thai Airways (TII) said its board decided to cancel its contract to manage Shah Amanat International Airport in Chittagong "due to delay of handover [of] the airport to Thai according to the contract." The carrier was supposed to take control more than a year ago, the Associated Press reported from Bangkok. Thai (TII) also said it would hire +426 new flight attendants (CA).
Rolls-Royce (RR) reached a 10-year TotalCare services contract with Thai Airways (TII) covering the (Trent 500)s on 10 A340s.
Airbus (EDS) continued its strong Paris Air Show by signing firm orders for 15 A330-300s plus 10 options for AirAsiaX (ASW), eight A330-300s for Thai Airways (TII), and 20 A330-200Fs for lessor Intrepid Aviation Group (INL), and hinted that more orders will be announced the following day. Thai (TII) will use the airplanes to replace older types in its fleet and Intrepid (INL)'s order firms and expands a previously announced agreement for 15 A330-200Fs, Airbus (EDS) said. Startup long-haul Low Cost Carrier (LCC) AirAsiaX (ASW) founder Tony Fernandes said the carrier, slated to launch in September, will stake its future on the A330.
August 2007: Thai Airways (TII) reported a profit for its third fiscal quarter ended June 30 of +THB405 million/+$12.8 million, down -14.4% from the +THB473 million earned in the year-ago period.
Revenue growth of +5.7% to THB44.53 billion was outpaced by a +7.9% rise in expenses to THB44.42 billion. Operating profit plunged -88% to +THB114 million from +THB959 million. The carrier did not elaborate on the results. Nine-month net earnings of +THB8.33 billion were down -20.6% from +THB10.49 billion.
Thai also announced several new appointments, including the promotion effective October 1 of VP Aviation Personnel Development, Pravit Shinawatra to Executive VP Operations, & VP Commercial Development & Support, Pandit Chanapai to Executive VP Commercial.
September 2007: The Thai Airways (TII)'s board will decide next month on a fleet expansion plan, that could include as many as 65 new airplanes, with eight 747-8Is likely to be among the orders. President, Apinan Sumanaseni said that the board is looking at two options, one for 61 airplanes and the other for 65. Other airplanes mentioned were the 787, 737-900, A350 and A321. According to an airline source, the airplanes would be delivered over 10 years and likely would be valued at THB390 billion/$12.1 billion. They would be used for both replacement and growth, with a net fleet increase of 18 for a fleet of 117 by 2017.
777-2D7ER (34590, HS-TJV "Nakhon Pathom"), delivery.
October 2007: 777-2D7ER (34591, HS-TJW "Phetchabun"), delivery.
November 2007: Thai Airways (TII) suffered a -29.5% decline in profit in its fiscal year ended September 30 to +THB6.34 billion/+$201.7 million, according to press reports from Bangkok, that cited weak airplane sales and unfavorable foreign currency fluctuations for the result. Sales climbed +7.5% to THB192.03 billion, but foreign currency gains plunged -80.6% to THB1.2 billion and the +THB500 million earned from the sale of three airplanes compared to +THB2 billion it made from disposal of four freighters in the 2005 - 2006 fiscal year, Thomson Financial reported. Costs were up +5.3% to THB179.2 billion, and passenger numbers rose +3% to approximately 20 million. Load factor was 77% LF.
January 2008: 2007 statistics (year ending Nov 30, 2007): 61.43 billion (RPK)s passenger traffic +10.6%; +7.9% (ASK); +2 load factor for 78.9% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "TII-2007-STATS."
Rolls-Royce (RR) sold (Trent 700)s to Thai Airways (TII) for its fleet of eight new A330-300s, scheduled to begin delivery in 2009. The engines are worth approximately $300 million at list prices, Rolls (RR) said. The contract also includes a 10-year TotalCare services agreement.
February 2008: Thai Airways (TII) reported a +THB1.84 billion/+$59 million profit in the three-month period ended December 31, a sharp decline from the THB4.03 billion earned in the year-ago quarter. The airline changed its fiscal year as of January 1 to match the calendar, so what previously has been the first fiscal quarter (October - December) now will not impact its full-year results. Revenue for the December quarter climbed +23.3% year-over-year to THB53.49 billion against a +15.9% increase in costs to THB49.77 billion. Operating profit was +THB3.72 billion.
Thai launched twice-daily, Bangkok - Samui service.
March 2008: Beijing Capital International Airport's new $3 billion-plus Terminal 3 opened as Shandong Airlines (SHG) (flight SC1151 arrived from Jinan at 8:39 am. UK architect, Norman Foster claimed it is the largest covered structure ever built - - 3.25 km long and 1.3 million sq m of floor space. Construction began in March 2004. The airport said the three-concourse facility welcomed Shandong (SHG), Sichuan Airlines (SIC), Qantas (QAN), Qatar Airways (QTA), British Airways (BAB), and El Al (ELA). A second move is scheduled for March 26 when Air China (BEJ), Shanghai Airlines (SHA), (SAS), Austrian Airlines (AUL), Lufthansa (DLH), Asiana Airlines (AAR), Air Canada (ACN), United Airlines (UAL), (ANA), Thai Airways (TII), Singapore Airlines (SIA), Finnair (FIN), Cathay Pacific Airways (CAT), Japan Airlines (JAL), Dragonair (DRG), Turkish Airlines (THY), Emirates (EAD), Air Macau (MCU), S7 Airlines (SBR), and EgyptAir (EGP) will transfer to the new building. "Reuters" reported that airport capacity will be boosted to 76 million per year from the 52 million it served in 2007. The baggage system can handle 19,800 pieces per hour, it said.
Later, Star Alliance (SAL) carriers Air Canada (ACN), Air China (BEJ), (ANA), Asiana Airlines (AAR), Austrian Airlines (AUL), (LOT) Polish Airlines, Lufthansa (DLH), (SAS) Scandinavian Airlines, Shanghai Airlines (SAL), Singapore Airlines (SIA), Thai Airways (TII), Turkish Airlines (THY), and United Airlines (UAL) each completed the transfer of their operations to Beijing International's Terminal 3. The move was part of the collocation plan developed as a result of Air China (BEJ) and Shanghai Airlines (SAL) joining the alliance last year. A similar collocation will be completed at Shanghai Pudong on April 29.
April 2008: Bangkok's downtown airport terminal will open by year end, providing remote check-in and high-speed train service to Suvarnabhumi International, according to Bangkok's "Daily Xpress." The three-story Makkasan terminal will have 200 parking spaces and a connection to the city's rapid rail system. Commuter trains with intermediate stops will reach the airport in 27 minutes.
Menzies Aviation (MA) said it won a three-year contract extension with Thai Airways (TII) for cargo handling at London Heathrow, which Thai (TII) serves twice-daily.
May 2008: Thai Airways (TII) blamed higher fuel costs and foreign exchange losses for a -48% decrease in first-quarter net profit to +$68.2 million despite a +11.2% rise in revenue to $1.69 billion.
Fuel costs leapt +39.6% $432 million, while exchange losses cost the airline $20 million compared to a $45.5 million gain in the prior period. Almost 50% of Thai (TII)'s debt is in euros, which appreciated +14% against the baht in the quarter, Bloomberg reported.
The carrier recently boosted fuel surcharges by +35% and reportedly is reconsidering a planned but yet-to-be-placed order for 14 787-9s and eight 747-8Is.
June 2008: Asia/Pacific airlines are responding rapidly and emphatically to the soaring cost of fuel and slowing global economy. Thai Airways (TII) announced that it will quit its nonstop services from Bangkok to New York (JFK) and Los Angeles, and sell off its four A340-500s to help stem losses due to surging oil prices. It estimates that losses on the two routes at current fuel prices would top $120 million. China Airlines (CHI) told "Bloomberg News" that it will ax 100 flights per month - - 10% of its capacity - - mainly to the USA, while (EVA) Air told the same news agency that it will cut services by -5%. (CHI) also will eliminate -50 all-cargo flights per month. However, on the upside is the likelihood of launch of weekend direct charter flights between Taiwan and mainland China, which will serve as a prelude to full scheduled services. Meanwhile, Air New Zealand (ANZ) announced it will raise fares for the second time in three weeks and cut services. Domestic and some international airfares will increase +4%, with flights to Australia, Japan and Hong Kong scaled back. These changes follow last month's fare hikes of an average +3% and a lowering of its profit forecast. Recently, Qantas (QAN) and Jetstar Airways (IMU) also have announced schedule reductions.
July 2008: Thailand and the Philippines liberalize their aviation accord.
The Thai Airways (ATII) board approved the acquisition of 20 A321-200s and said it has made "progress" in negotiations with Airbus (EDS). The purchase now requires government approval. The 179-seat airplanes are expected to be delivered in 2012 through 2017.
August 2008: 1st 6 months = 26.63 billion (RPK)s traffic - - see "TII-08TOPWLD6MTHSRPK."
Thai Airways (TII) posted a -THB9.25 billion/-$272.3 million loss in the second quarter, widened from a -THB430 million deficit in the year-ago period, on fuel costs and foreign exchange losses, according to a company statement cited by "Reuters."
Thai Airways (TII) set aside THB700 million/$20.6 million that it hopes to use for early retirement packages to induce 500 workers to leave the airline, the "Bangkok Post" reported. Thai (TII) also said it will cease operating flights from Bangkok to New York (JFK) and Auckland. The moves came after the carrier posted a -THB9.24 billion/-$284 million second-quarter loss, widened from a -THB417.4 million/-$12 million deficit in the year-ago quarter, and its largest quarterly loss since 1997.
Second-quarter revenue increased +12.6% to THB50.86 billion, but expenses jumped +34.5% to THB59.92 billion, including a +63.5% leap in fuel costs to THB23.56 billion. Net loss for the first half was -THB7 billion, reversed from a +THB3.53 billion profit in the first six months of last year, on an +11.5% rise in revenue to THB106.71 billion.
September 2008: Thai Airways International (TII) recently exited the Bodhgaya and Varanasi markets (both religious pilgrimage sites).
Foreign tourism to Thailand is way down amid political strife and economic woes.
October 2008: Thai Airways (TII) said that its third-quarter loss would narrow from the -THB9.25 billion/-$269.7 million deficit reported in the second quarter, Executive VP Commercial, Pandit Chanapai said, according to "Reuters." He cited declining costs as the reason for the improvement. Its load factor is expected to be around 70% LF. For the full year, Pandit said revenue will fall from the THB174 billion reported in 2007.
November 2008: Bangkok's Suvarnabhumi International airport suspended all takeoffs after protesters seeking to force the resignation of Prime Minister, Somchai Wongsawat stormed the airport. The passenger terminal was overtaken by the protesters amid an increasingly unstable situation throughout the capital. Protesters also blocked roads leading to the airport. "For the safety for passengers, we have to stop flights out of the airport temporarily until the situation returns to normal," Airport Manager, Serirat Prasutanon said. Incoming flights still were operating, according to some reports. Other reports, however, indicated that a large number of flights were diverted to other airports.
Recent sporadic protests in Bangkok and a stressed economy, had led flag carrier Thai Airways (TII) to reduce flights to/from the city. In a development apparently unrelated to theser protests, Thai (TII) announced that President, Apinan Sumanaseni resigned effective January 1. "He gave two reasons for his resignation: Firstly health problems, and secondly he said he cannot work with the board," an airline spokesperson told Singapore's "The Straits Times." Executive VP, Narongsak Sangapong will serve as acting President.
Bangkok's Suvarnabhumi International airport(BKK), which suspended takeoffs after anti-government protesters stormed the airport, was closed completely as the political crisis deepened and governments throughout the world warned citizens against traveling there. The protesters, calling themselves the "People's Alliance for Democracy," claimed they had taken control of (BKK) and that airlines would have to seek their direct authorization to land. The group agreed to allow Airports of Thailand and Thai Airways (TII) to evacuate 3,000 passengers stranded at the airport, when outbound flights were cancelled. The passengers were taken to Bangkok aboard busses. Protesters blocked roads leading to the airport. Thai (TII) estimated that it will lose around -$14 million daily, from the closure and expenses related to dealing with the crisis.
December 2008: A Thai Airways (TII) flight from Phuket landed at Bangkok Suvarnabhumi airport (BKK), marking the resumption of service at the capital's international airport following a one-week closure caused by a siege by anti-government protesters. (BKK) is expected to reopen slowly over the coming days. Normal service still may be some time away, as the first order of business is arranging flights to ferry more than >200,000 foreign passengers still stranded in Bangkok.
Operator Airports of Thailand dispatched teams of engineers and mechanics (MT) to examine equipment to determine if the thousands of protesters caused damage requiring repairs. Cleaning crews also fanned out across (BKK). The first flights at domestic hub Don Muang airport have taken place. (TII) said it cancelled more than >1,000 flights owing to the protest and estimated the crisis will cost it at least $550 million in lost revenue.
January 2009: Thai Airways (TII) reported a -THB21.38 billion/-$592.1 million loss in 2008 compared to a +THB4.43 billion profit in 2007 as the economic downturn and the protest-induced closure of Bangkok Suvarnabhumi in the fourth quarter proved too much to overcome. (TII) suffered a -THB14.8 billion fourth-quarter loss that represented a reversal from a +THB1.84 billion profit in the final three months of 2007.
Transport Ministry Secretary & (TII) Chairman, Surachai Tansitpong said the carrier should be profitable this year, thanks to lower fuel prices and cost-cutting measures equaling -5% in 2009 and -20% in 2011 through 2012, according to The Nation. (TII) recently sought THB22 billion in liquidity to help carry it through the current crisis.
Full-year revenue rose +1.6% to THB200.12 billion but expenses soared +10.8% to THB206.78 billion. The carrier said a +47% increase in average fuel price, airplane and engine depreciation, severance costs and a -THB4.47 billion foreign exchange loss all were key contributors to the cost increase. Other charges included a THB4.29 billion provision for antitrust settlements and a THB4.43 billion charge related to a pending airplane sale.
(TII) is seeking THB19 billion/$540.6 million in working capital from state-owned banks and an additional THB15 billion for refinancing short-term loans, according to an airline statement cited by press reports. (TII) completed a separate THB5 billion bond sale to institutional investors, "Reuters" reported, and said it may not require all the additional money "if passenger traffic is back to normal faster than expected." VP Investor Relations, Raj Tanta-Nanta told "The Financial Times" that the week-long, protester-induced closure of Bangkok Suvarnabhumi in November/December cost the airline THB5 to THB6 billion in revenue, while Acting President, Narongsak Sangapong told "Reuters" that it lost -THB19 billion in cash during the closure and needed the loans "to support cash flow." The board had approved plans to borrow THB17 billion last week.
Airports of Thailand (AOT) will cut landing and parking fees by -20% from February 1 to September 30 in an effort to boost tourism, President, Serirat Prasutanont said, according to "Reuters." The operator expects to lose some -THB400 million/-$11.4 million in revenue. (AOT) reported a +THB7.32 billion profit in its fiscal year ended September 30, 2008.
(TII) will seek a delay in the delivery of six A330s scheduled to arrive between April and year end, having already received permission from Airbus (EDS) to push back payments. "We want to negotiate for more time before the delivery. The more months we can delay, the easier it is for us to manage our expenses," acting Chairman, Surachai Thansitpong told "Bloomberg News." (TII) will continue to use airplanes that were scheduled to be replaced by the new A330s. Meanwhile (TII)'s board approved a plan to borrow THB17 billion/$482.4 million, Surachai told "Bloomberg," with THB3 billion from short-term loans.
March 2009: Thai Airways (TII) will move its remaining 23 domestic flights to Bangkok Suvarnabhumi airport from Don Muang airport by March 29.
(TII) may transfer some loss-making domestic routes to Nok Air (NKA), of which it owns 39%.
April 2009: A330-343E (990, HS-TEN), delivery.
May 2009: Thai Airways (TII) facing losses for the first time in recent memory, hopes to get relief in far away Norway. (TII) will send its ultra-long range A340-500s to Oslo from Bangkok starting next month. Despite the end of the oil boom, Oslo, the capital city of energy rich Norway is getting a sizable number of new flight these days.
A330-343E (1003, HS-TEO), delivery.
June 2009: As Thailand's flag carrier, Thai Airways Internat6ional (TII) serves destinations in Asia-Pacific, Europe, and North America. A comprehensive domestic network is also operated.
Employees = 26,435.
(IATA) Code: TG - 217.
(ICAO) Code: THA (Callsign - THAI AIRWAYS INTERNATIONAL).
Parent organization/shareholders: Thai Ministry of Finance (53.76%); Vayupak Fund 1 by Krung Thai Asset Management (9.12%); Vayupak Fund 1 by MFC Asset Management (9.12%); Chase Nominees 1 (3.26%); State Street Bank & Trust (1.74%); Thai NVDR (1.15%); Chase Nominees 42 (0.94%); Morgan Stanley & Co International (0.86%); & others (20.05%).
Airline subsidiaries/shareholdings: Nok Air (NKA) (39%); & Euarng Luang (100%).
Alliances: Star Alliance (SAL); Aerosvit Airlines (UKA); Air India (AIN); Air Macau (MCU); Air Madagascar (MAD); Bangkok Airways (PGB); China Airlines (CHI); Chine Eastern Airlines (CEA); Egyptair (EGP); El Al Israel Airlines (ELA); Emirates (EAD); Gulf Air (GUL); Japan Airlines International (JAL); Lao Airlines (LAO); Malaysia Airlines (MAS); Myanmar Airlines International (BRM); Pakistan International Airlines (PIA); PB Air (PBJ); Royal Jordanian Airlines (RJA); S7 Airlines (SBR) & Swiss (CSR).
Main Base: Bangkok Suvarnabhumi International airport (BKK).
Hubs: Chiang Rai International airport (CEI); Chiang Mai International airport (CNX); Hat Yai International airport (HDY); & Phuket International airport (HKT).
Domestic, Scheduled Destinations: Bangkok; Chiang Mai; Chiang Rai; Hat Yai; Khon Kaen; Krabi; Mae Hong Son; Nakhon; Si Thammarat; Phitsanulok; Phuket; Surat Thani; Trang; Ubon Ratchathani; & Udon Thani.
International, scheduled destinations: Athens; Auckland; Bandar Seri Begawan; Bangalore; Beijing; Brisbane; Busan; Chengdu; Chennai; Chittagong; Colombo; Copenhagen; Delhi; Denpasar Bali; Dhaka; Dubai; Frankfurt; Fukuoka; Guangzhou; Hanoi; Ho Chi Minh City; Hong Kong; Jakarta; Karachi; Kathmandu; Kolkata; Kuala Lumpur; Kunming; Kuwait; Lahore; London; Los Angeles; Luang Prabang; Madrid; Manila; Melbourne; Milan; Mumai; Munich; Muscat; Nagoya; Osaka; Paris; Penang; Perth; PhnomPenh; Rome; Seoul; Shanghai; Singapore; Stockholm; Sydney; Taipei; Toko; Vientiane;; Xiamen; Yangon; & Zurich.
Thai Airways (TII) President, Narongsak Sangapong told "Bloomberg News" that the carrier is reconsidering its commitment for six A380s. "We need to determine whether it's worth the large investment," he said, while investor relations head, Raj Tanta-Nanta told the "Associated Press (AP)" that (TII) is "taking a hard look at our options, whether we want to have the A380s, whether they are affordable in the current economic downturn." The (AP) said that (TII) Chairman, Wallop Bhukkanasut was quoted by the "Bangkok Post" saying that adding the A380 "does not make economic sense."
Later, Thai Airways (TII) appointed Piyasvasti Amranand, who served as Thailand's energy minister in 2006 to 2008, as its new President. He will fill the vacancy left by Apinan Sumanaseni's resignation last year. In addition, Chairman, Ampon Kittiampon told reporters that (TII) will borrow THB23 billion/$670.5 million from four domestic banks but still needs an additional THB14 billion from foreign lenders for airplane financing, according to press reports.
July 2009: Thai Airways (TII) Chairman, Ampon Kittiampon told reporters that (TII) negotiated with Airbus (EDS) to delay the start of its A380 deliveries to December 2012 from late next year, "Reuters" reported. "We want to postpone the delivery as far as possible to reflect the current market conditions," he said. Last month, two other Thai executives told reporters that the carrier was reconsidering its order for six A380s.
A330-343E (1035, HS-TEP), delivery.
August 2009: Thai Airways (TII) said it cut non-fuel costs through the first five months of this year by -18.9% from the year-ago period to approximately THB34.76 billion/$1.01 billion.
(TII) took delivery of an A330-300 in Toulouse, the 1,000th A330/A340 family airplane delivered by Airbus (EDS) - - SEE ARTICLE - - "TII-A330-300-2009-08." (TII) operates 15 A330-300s, four A340-500s and six A340-600s.
September 2009: Thai Airways (TII) suffered a -THB5.4 billion/-$156.5 million loss in the second quarter, a +41.6% improvement from the -THB9.25 billion deficit reported in the year-ago period. Revenue fell -31.9% to THB34.63 billion and expenses were down -34.8% to THB39.92 billion. Capacity was cut -11.2%, but a -22.7% fall in traffic (RPK)s lowered load factor -9.9 points to 66.2% LF. (TII) said the traditional low season, the global downturn, the H1N1 flu and domestic political unrest combined to produce the loss. Yield dropped -11.6% to THB2.37. (TII) also suffered a -THB1.82 billion loss on foreign currency exchange during the period. Through the first half of 2009, (TII) was +THB2.47 billion in the black compared to a -THB7.04 billion deficit in the year-ago semester.
October 2009: Thai Airways International (TII) is increasing services to Australia, Russia, Norway, and the USA. The Star Alliance (SAL) carrier says its new schedule, starting 25 October, will see the introduction of a five-times-weekly, non-stop service from Bangkok to Brisbane using 777-200s. Currently, (TII) serves Brisbane seven times weekly but it is a one-stop service. (TII) also says its Bangkok-Perth service is increasing to four-times weekly from twice-weekly.
As for other countries, on 1 December, (TII) says it is increasing its Bangkok - Oslo service to daily from five-times weekly, Bangkok - Moscow goes to four-times weekly from thrice-weekly, and Bangkok - Los Angeles goes to daily. According to "Innovata," (TII) has been serving Los Angeles five-times weekly using A340-500s. Earlier this year (TII) disclosed it is phasing out and seeking to sell its A340-500s.
(TII) was scheduled to launch five-times-weekly, Bangkok - Brisbane flights aboard a 777-200 and thrice-weekly, Phuket - Hong Kong flights on an A330-300. Additional frequencies will be added to service from Bangkok to Perth, Los Angeles, Oslo Gardermoen, and Moscow Domodedovo.
(TII)'s new President, Kasikornbank Bank executive and former Thai Minister of Energy, Piyasvasti Amranand, said he plans to raise funds through a share issue next year. (TII) has THB29 billion/$854.8 million in debt to pay off in 2010. "We need to raise capital because we have a lot of short-term debt to be repaid," Piyasvasti said, according to "Reuters." "We are also trying to convert our short-term debt to longer maturities. As the long-term debt has a maturity of six years, that doesn't match our funding for plane procurements." He said (TII) expects THB157 billion in revenue this year, down -21%, although the profit forecast "remains unclear." It was +THB2.47 billion in the black through the first half. The (TII) board also approved plans to secure THB35 billion in short- and medium-term loans, "Reuters" said.
In a statement, (TII) said Piyasvasti intends to lead "with an emphasis on customer-oriented services" and that (TII) will endeavor to "deliver better customer experience at lower delivery cost compared to Asian and global competitors." In the short term, he intends to improve in-flight catering and reading materials "without additional investment," and seat and In-Flight Entertainment (IFE) enhancements are expected within two years. He also plans to introduce a "whistleblower" policy, (TII) said. In addition, VP Asset Management Department, Chokchai Panyayong was promoted to Executive VP Strategy & Business Development Department.
The Australian Competition & Consumer Commission (ACCC) launched legal proceedings against Thai Airways (TII), alleging that the carrier engaged in price-fixing on cargo carriage over a five-year period. (TII) is the 11th airline targeted by the (ACCC) in its ongoing investigation of antitrust irregularities in air cargo pricing. Six have paid penalties totaling A$41 million/$37.6 million and four cases are pending. The (ACCC) said in a statement that between 2001 and 2006, (TII) "entered into arrangements or understandings with other international air cargo carriers in specific countries that had the purpose or effect of fixing the price of fuel surcharges and security surcharges that were applied to air cargo carried by [TII] and other airlines," specifically on shipments originating in Singapore, Indonesia, and Hong Kong. It added that (TII) also reached inappropriate deals for a domestic "crisis surcharge." (TII) said it "has consistently maintained its corporate policy to comply with the laws of the countries where it operates." A hearing was set for November 26 in Sydney.
November 2009: Thai Airways International (TII) reported a -THB4.03 billion/-$119.5 million loss in the third quarter, reversed from a +THB426.2 million profit in the year-ago period that was the product of a large foreign exchange gain. Revenue dropped -27.7% year-over-year to THB39.15 billion, while expenses including finance costs and excluding foreign exchange losses fell -31.2% to THB40.27 billion owing largely to a -50.1% fall in average fuel price and capacity cuts. (TII) President, Piyasvasti Amranand said that as a result of the downturn, (TII) "adjusted its capacity to better reflect demand . . . and implemented aggressive marketing strategies." Yield excluding fuel surcharges fell -17.1% to THB2.34 and load factor rose +0.7% to 73.9% LF. Nine-month loss totaled -THB1.57 billion as a result of the third-quarter deficit but still a significant improvement from the -THB6.61 billion suffered in the first nine months of 2008.
(TII) intends to resume Bangkok to Johannesburg in 2010.
(TII) took delivery of one A340-500 and one A340-600, lifting its fleet to 90 airplanes. Planes are powered by (Trent 500)s. The A340-500 seats 215 across three classes and will operate to Los Angeles and Athens, while the A340-600 seats 267 and will fly to Tokyo Narita, Shanghai, Zurich, and Sydney.
December 2009: Thai Airways (TII) will pass operation of routes to Phitsanulok, Ubol Ratchathani and Mae Hong Son to Nok Airways (NKA), in which Thai (TII) is the largest shareholder. The change takes effect March 1. (TII) said passengers "will continue to receive the same standard of services" on Nok (NKA) flights. It said it lost an average of -THB211.1 million/-$6.3 million per year over the past five years operating to the three cities.
3 A330-343Es (1037, HS-TEQ; 1060, HS-TER; 1074, HS-TES), deliveries.
January 2010: Thai Airways (TII) President, Piyasvasti Amranand told reporters that (TII) expects to post a net profit in both 2009 and 2010, when it expects to be +THB4 billion/+$121.3 million in the black, "Reuters" reported. A profit in the 2009 fourth quarter will reverse a -THB1.57 billion loss through the first nine months of last year, he said.
Thailand had 14 million international visitors in 2009, down -4%.
February 2010: The Thai Airways (TII) board announced plans to lease 15 wide body airplanes over the next five years, requiring an investment of approximately THB35 billion/$1.05 billion. (TII) currently has five A330-300s and six A380s on order. Chairman, Amphon Kittiamphon told the "Thai News Agency" that it expects to begin taking delivery of the A330s this year and the A380s in 2012 or 2013. The 15 new airplanes will comprise seven, seating some 300 passengers, and eight, seating at least 350, which will be operated on leases of 10 to 15 years. The airline currently operates 91 airplanes and expects to have 102 within 15 years, he said. The board also approved THB3.92 billion for spare parts.
President, Piyasvasti Amranand told "The Nation" that (TII) intends to reduce non-fuel expenses in 2010 by -THB12 billion. He said last month that it expects to report profits for both 2009 and 2010.
Thai Airways (TII) named Pravich Rattanapira Chairman of the executive board, succeeding Wallop Bhukkanasut.
Koito Industries of Yokohama was ordered by the Japanese Civil Aviation Bureau (JCAB) to re-test some 150,000 airp-lane seats installed on around 1,000 airplanes operated by 32 airlines worldwide and make fixes if necessary. The (JCAB) accused the company of falsifying data from tests on the seats' fire and shock resistance and Koito, which is 20% owned by troubled automaker Toyota Motor Corporation, later admitted to the wrongdoing. Koito President, Takashi Kakegawa told reporters at a press conference that "the whole section in charge [of the testing] was systematically involved" in falsifying results. The (JCAB) said it has evidence the false test data dates back to the 1990s. Koito lists Japan Airlines (JAL)/(JAS), (ANA), Singapore Airlines (SIA), Continental Airlines (CAL) and Virgin Atlantic Airways (VAA) as "major customers" on its website.
Airbus (EDS) acknowledged that (EASA) barred it in September from delivering airplanes with Koito seats, according to "Bloomberg News." The European safety agency determined that the seat-maker failed to share enough pertinent data on its seats to warrant continued approval and that there was evidence of "irregularities" at Koito. (SIA) reportedly was forced to delay delivery of its 11th A380 owing to the issues surrounding Koito seats, while (ANA) said the launch of its Inspiration of Japan long-haul product aboard a 777-300ER would be postponed until April because of a delay in the development of its new premium economy seats by Koito. Thai Airways (TII) announced that it has canceled a contract with Koito, blaming repeated seat-installation problems for the delayed delivery of five A330-300s. It said the seat-maker claimed it could resolve its issues and install the seats by August, but (TII) was unwilling to continue waiting for airplanes it said have been sitting idle in Hamburg since September.
2 777-200LRFs (37986, N774SA), Southern Air (SOF) wet-leased.
March 2010: Thai Airways (TII) reported 2009 net income of +THB7.34 billion/+$222.8 million, reversed from a net loss of -THB21.38 billion in 2008, citing "cost control" and a foreign exchange gain as the main reasons it returned to the black.
While it expects to remain profitable this year, (TII) said it is "still affected by the various crises including the ongoing global recession and the lingering H1N1 pandemic." It noted that "Thai political unrest" had a "negative impact" on 2009 operations.
But it said that in the fourth quarter "the world economy began to improve as forecast coinciding with the time of peak travel demand. (TII) gradually increased its flight operations as planned, combined with the implementation of measures to increase quality revenue, employing strict cost control measures and . . . was able to achieve established targets and to regain profitability in 2009."
Revenue last year dropped -19.1% to TRB163.88 billion "mainly due to intense competition on fares, a decline in load factor as well as lowered fuel surcharge following the reduction in the average fuel costs." Expenses decreased -31.1% to THB155.77 billion "due to the decline in the average fuel costs from  and because of lower production and transportation volume." A foreign exchange gain of +THB3.27 billion was reversed from a foreign exchange loss of -THB4.47 billion in 2008.
Separately, (TII) and Nok Air (NKA), that is partially owned by (TII), signed a Memo of Understanding (MOU) to start code sharing on domestic flights from March 1 as part of a "two-brand strategy."
Turkish Airlines (THY) is looking to expand its presence at Bangkok Suvarnabhumi (BKK) and to partner with fellow Star (SAL) Alliance member, Thai Airways (TII) in an effort to penetrate more of Southeast Asia and Australia. (THY) General Manager Thailand, Vietnam & Cambodia, Adnan Aykac told the "Bangkok Post" that the airline is negotiating a code share agreement with (TII) that would give it access to Australia and New Zealand, where (TII) serves a combined five destinations.
"While we are hopeful we can strike a deal with (TII) later this year, we do have alternatives to support our growth in this region," he told the paper. (THY) reportedly plans to serve Ho Chi Minh City via (BKK) from the fall and also is considering flying to Kuala Lumpur and Manila.
Thai Airways (TII) unveiled a fleet plan designed to accommodate "increased competition over the next five years as well as "open skies" in Asia and various regions worldwide" and growing customer expectations. Through 2014, it plans to phase out six 747-400s, 10 A300-600s, four A340-500s, three 737-400s and two ATR72s. (TII) will take delivery of three A330-300s and six A380-800s during the same time frame and said it plans to acquire an additional seven 300-seat planes for use on regional routes and eight 350-seat airplanes for intercontinental operations to Los Angeles and Scandinavia. From 2015 through 2019, (TII) said it will phase out an additional 32 airplanes and add at least 38, and from 2020 through 2024, it will phase out -20 and add no fewer than +28.
May 2010: 3 777-35RERs (35157, HS-TKG; 35158, HS-TKH; 35161, HS-TKJ), Jet Airways (JPL) leased.
August 2010: Thai Airways International (TII) 2009 Passenger Traffic = 38,124 Million (-15.68%) (RPK)s (World Highest #30) (#19), Total Employees = 26,943 (-0.9%) (World Highest #14).
The Thai Airways International (TII) Public Company and Tiger Airways (TGR) Holdings announced that they will jointly launch a new low-fare airline venture, to be called "Thai Tiger Airways (TTG)", to offer service from Bangkok to domestic and international routes.
It is due to start service in the first quarter of 2011, will operate out of Suvarnabhumi International and offer short-haul, point-to-point services within a 5-hour flying radius. Thai (TII) and an unnamed "Thai entity" will collectively own 51% of Thai Tiger Airways (TTG), while Tiger Airways (TGR) will own 49%. It will most directly face off against AirAsia Thailand (THA), which carried nearly 5 million passengers last year, up +23% over 2008, with a fleet of 20 A320s and 737s.
The joint venture airline raises the bar in low-cost competition in Asia, according to Sydney-based Centre for Asia Pacific Aviation (CAPA). “This could have a major impact on the pace of airline liberalization in the region,” (CAPA) said in a statement. Until now, the Thai government has been highly protective of its national flag carrier (TII) and has been an impediment to the region’s multilateral timetable for moving toward open skies for Southeast Asian airlines.
“This position could now soften, as high-cost Thai Airways (TII) will have the opportunity to meet competition on a more equal footing,” (CAPA) maintained.
In a statement, (TII) President, Piyasvasti Amranand said the airline was “pleased to partner with Tiger Airways (TGR) in establishing Thailand's newest airline . . . . With its disciplined approach to the low-cost model, (TGR) has proven that it has the right approach to competing effectively in the growing low-fare travel market in Asia.”
Amranand said the move would “allow (TII) to be more competitive in the region with the anticipated growth in the low-cost market as a result of continued (ASEAN) air liberalization policies by 2015, which we expect will lead to growth in air travel in the Asian market. Thai Tiger (TTG) will offer an entirely different line of products to that offered by Thai (TII).”
There could be logistical challenges to setting up the new carrier: According to (CAPA), Thai (TII) and Tiger (TGR) “do not even code share, let alone cooperate in any other way.”
Airbus (EDS) said Thai Airways (TII) signed a firm order for seven A330-300s, confirming a commitment announced at last month's Farnborough Airshow. Deliveries will begin at the end of 2011. Engine selection was not announced but (TII)'s 20 in service A330-300s are powered by a mix of Rolls-Royce (RRC) and Pratt & Whitney (P&W) engines.
President, Piyasvasti Amranand said, “Our fleet strategy aims to improve efficiency and reduce carbon emissions by matching airplane size to market demand, while working on fleet simplification in the long-term. The popular A330 remains an important part of that strategy.”
Separately, Thai (TII)'s board of directors approved the company's acquisition of additional term loans from the following banks: Thanachart Bank (THB2 billion/$62.8 million over seven years); TMB Bank (THB2 billion over seven years as well as a THB1 billion five-year Revolving Credit Line); and Tisco Bank (THB1.5 billion over seven years and a THB1.5 billion, seven-year Revolving Credit Line).
An airport rail link from downtown Bangkok to Suvarnabhumi Airport, five years under construction, was opened. A consortium comprising B Grimm, STECON and Siemens constructed the rail line at a cost of 25.9 billion baht/$821.1 million. It is owned by the State Railway of Thailand. The rail link operates two lines capable of carrying up to 50,000 passengers a day. The City Line runs every 15 minutes and an Express Line every 30 minutes. Each operates from 6 am to midnight. The City Line makes eight stops in the city before departing for the airport, taking 30 minutes from start to finish. Passengers on the City Line pay a flat rate of 15 baht per trip during a promotional period through December 31. Starting January 1, fares will range from 15 baht to 45 baht, depending on the distance traveled, according to government officials.
November 2010: Bangkok's Suvarnabhumi International airport (BKK) finally has an operational rail link to the downtown area of the capital city after many months of problems, which also included social unrest earlier this year and conflict between the rail constructor and the train operator. The 16 mile/26 km track links the facility to Bangkok's Makkasan area with a 15-minute non-stop service.
BOC Aviation (SIL) ordered eight 777-300ERs for long-term lease to Thai Airways International (TII). Boeing valued the orders at $2.2 billion at average list prices. The airplanes, powered by (GE90-115BL) engines, will be delivered from August 2012 to October 2013. The lease marks the first time BOC Aviation (SIL) has worked with Thailand’s national carrier.
The Thai board of directors approved the acquisition of the airplanes last June. “We are in the process of replenishing our order book as air traffic has returned strongly. With the order of these eight 777-300ERs for lease to Thai (TII), we have further strengthened the quality of both our lease and airplane portfolios. We look forward to developing further our partnership with Thai (TII) and playing a long-term role in the carrier's future fleet requirements,” BOC Aviation (SIL) Managing Director & CEO, Robert Martin said.
BOC Aviation (SIL), owned by the Bank of China (BOC), has a portfolio of 137 single-aisle and 26 wide-body airplanes.
December 2010: Thailand's government has confirmed it plans to dilute its stake in Thai Airways International (TII), so (TII) will no longer be a state enterprise. Thailand's Finance Secretary, Areepong Bhoochaoom, told the "Thai News Agency" that the finance ministry will reduce its 51.03% stake by -1 to -2%. Once the ministry's stake falls below <50%, (TII) will no longer be considered a state enterprise, he says.
Currently, Thai Airways (TII) is negotiating with creditors to have some covenants taken out of some of its loans, says Areepong. These covenants stipulate that the finance ministry must own more than >50% of (TII)’s shares. (TTT) President, Piyasvasti Amranand said in October that (TII) was working with the finance ministry on a plan to reduce the ministry¹s stake to less than <50%. If (TII) achieves its goal of no longer being a state enterprise, it means Piyavasti and successive (TII) Presidents are more likely to stay on, based on merit, rather than who is in government, says Piyavasti. (TII) over the years has had a myriad of Presidents, a reflection of how often the government has changed.
In a separate development, (TII) is still looking to increase its stake in Thai low-cost carrier Nok Air (NKA) to 49% from 39%. Krung Thai Bank had been speaking to (TII) about selling its 10% stake in (NKA), but wanted 220 million Thai baht for the stake. A (TII) executive and other industry executives said that (TII) still wants to negotiate with Krung Thai, even though the bank set a November 30 deadline. (TII)'s Piyavasti has said repeatedly that (TII) wants to have more control over (NKA). But he has also said that the asking price is too high.
Piyasvasti said in October that (TII)'s initial investment in Thai Tiger (TTG) would only be about 100 million baht and that this represents a much better investment. (TII) has since announced that it will be spending 99.8 million baht for a 49.9% stake in Thai Tiger (TTG), and that Thai nationals who are employees of Thai Tiger (TTG) will collectively hold another 1.1%. Singapore’s Tiger Airways (TGR) Holdings will have 39% and Ryan Asia 10%. Thai Tiger is a new low-cost carrier that (TII) is launching to compete more effectively against Thai AirAsia (THA). It was planning to launch operations in March 2011 but has delayed its launch to May. Thailand’s Prime Minister and Finance Minister have publicly supported the move to establish Thai Tiger (TTG) but the country’s transport minister has expressed his opposition to the deal.
January 2011: SEE ATTACHED "TII-2011-01-2010 WORLD TOP TRAFFIC."
March 2011: Thai Airways International (TII) Public Company and Tiger Airways (TGR) Holdings formally signed a shareholders' agreement to launch Thai Tiger Airways, the low-fare joint venture (JV) carrier the companies announced last summer.
They also said in a joint statement that Ryan Thai will own a 10% stake in Thai Tiger. Ryan Thai will be represented on the Thai Tiger board by Declan Ryan, whose family founded Ryanair (RYR). Thai Airways (TII) will own 49.9% while Tiger Airways (TGR) will hold 39% and individual Thai investors will own 1.1%. The carrier will operate out of Suvarnabhumi International airport and offer short-haul, point-to-point services within a 5-hour flying radius. A start-up date was not announced; the deal still requires regulatory approval.
April 2011: The Thai government gave Thai Airways (TII) the right to decide how it acquires airplanes, clearing the way for (TII) to move forward with a plan to buy or lease up to 75 airplanes over a 12-year period. (TII) previously could only acquire airplanes under the direction of Thailand's Transport Ministry, which had pushed for all new acquisitions to be purchases rather than leases. (TII) President, Piyasvasti Amranand believes (TII) should acquire airplanes through a mix of purchases and leases.
According to the "Bangkok Post," the government's decision allows (TII) to move forward with a plan to purchase or lease up to 75 airplanes over a 12-year period under a THB457.12 billion/$15.3 billion budget. Piyasvasti said (TII) will acquire new airplanes through a variety of means depending on its cash flow and debt. The "Bangkok Post" reported that the airplanes will be acquired in two batches: 37 between now and 2017, and 38 from 2018 through 2022.
In a related development, the Thai board endorsed the leasing of two 777-300ERs from Jet Airways (JPL) for two years with deliveries scheduled in October and November. (TII) said it will also convert two 747-400s to freighters.
May 2011: As part of the Asia and South Pacific Initiative to Reduce Emissions (ASPIRE) program, Airservices, along with air navigation service providers Airways New Zealand and AEROTHAI, collaboratively used technological innovation and best practice, air traffic control (ATC) management during a flight from Bangkok to Auckland this month.
Operated by a 777-200ER, the flight left Bangkok at approximately 7.30 pm (local) and was given unrestricted taxi and take-off and an uninterrupted climb to its initial cruise level. Airservices' National Operations Centre in Canberra, and controllers from Upper Airspace Services and East Coast Services provided the flight with a company preferred route across Australian airspace. On arrival at Auckland Airport, the flight was offered an unrestricted descent directly to final approach and the shortest taxi route to the gate. The 777 touched down at Auckland shortly before midday after the 11.5 hour flight. (TII) conducted a second (ASPIRE) demonstration flight from Auckland to Bangkok on Sunday May 8th.
The 'green' air traffic management procedures and technology demonstrated in the (ASPIRE) partnership has seen participating airlines report a saving of 234 kg of fuel per flight on average.
Aerothai now joins Airservices, Airways New Zealand, Civil Aviation Authority of Singapore, the Federal Aviation Administration (FAA) and the Japan Civil Aviation Bureau in the joint venture (JV) designed to lessen the environmental impact of aviation across Asia and the South Pacific.
June 2011: Thai Airways International (TII) President, Piyasvasti Amranand believes (TII)'s planned low-cost carrier (LCC) with Tiger Airways (TGR) will still go ahead, despite delays caused by a lack of government approvals.
"The joint venture (JV) with (TGR) has been delayed by bureaucratic red tape . . . but it will not take too long," said Amranand.
The new airline, "Thai Tiger," was initially expected to begin operations by March but has not started flights. Asked if he was optimistic that it will eventually get off the ground, Amranand said: "Governments come and go [in Thailand] . . . Thai Airways (TII) has been here for 50 years whereas the average life of the government has been one or two years."
(TII) also a 39% stake in low-cost carrier Nok Air (NKA), but Amranand believes that Thai Tiger will cater to a different segment.
"Nok Air (NKA) intends to be a domestic carrier, it is concentrating on small towns in Thailand that we can't fly to," he said.
The Thai Airways International (TII) board of directors has authorized the purchase of six 777-300ER (extended range) jetliners and the lease of eight 787 Dreamliners. (TII) currently operates nearly every 777 model produced, including the 777-200, 777-200ER, 777-300 and 777-300ER. In addition, THAI Cargo became the first carrier in Southeast Asia to utilize the 777F Freighter.
August 2011: Thai Airways International (TII) ordered four A350-900s and five A320s and will also lease eight A350-900s and six A320s. (TII) will receive its first A350-900 in 2016 and the first A320 next year.
(TII) is also planning to acquire six 777-300ERs and lease eight 787s. The orders and leases were made possible by an agreement struck earlier this year with the Thai government to allow (TII) the right to decide how it acquires airplanes. (TII) previously could only acquire airplanes under the direction of Thailand's Transport Ministry, which had pushed for all new acquisitions to be purchases rather than leases. (TII) plans to lease and purchase up to 75 airplanes over a 12-year period under a THB456.1 billion/$15.3 billion) budget.
September 2011: Thai Airways International (TII) Public Company has scrapped plans to form a joint venture (JV) with Tiger Airways (TGR) Holdings to form Thai Tiger Airways, the low-fare joint venture (JV) carrier the companies announced last year, according to Thai (TII) Chairman, Ampon Kittiampon.
The move, reported by the "Bangkok Post," is a sudden change after Thai (TII) and Tiger (TGR) formally signed a shareholders' agreement in March to launch the airline. (TII) was to own 49.9% while (TGR) would have had 39% ownership with a 10% stake being held by Ryan Thai.
It is not clear if (TGR)’s recent grounding in Australia (TAU) had a bearing on the (TII) decision.
(TII) now plans to launch a wholly owned subsidiary, "Thai Smile" in July 2012. Thai Smile Air is scheduled to begin its first flights in July 2012, with Bangkok Suvarnabhumi Airport as its main hub. THAI (TII) will use THAI Smile Air to replace the main brand in Ubon Ratchathani, Udon Thani, Khon Kaen, Chiang Rai, and Surat Thani.
Abacus said Thai Airways (TII) has signed onto its reservation inventory participation through Abacus Direct Connect Availability (DCA). With Abacus (DCA), the (TII) central reservation system will be connected directly to the Global Distribution System (GDS), Abacus said.
October 2011: Thai Airways International (TII) acquired an additional 10% stake in Nok Air (NKA), lifting its holding in the low-cost carrier (LCC) to 49%, according to a statement for Thailand’s stock exchange. With a 49% share, (TII) has five out of nine directors on (NKA)’s board, compared to four previously, giving it greater control over (NKA)’s strategy.
December 2011: Thai Airways International (TII) acquired an additional 10% in Nok Air (NKA), lifting its stake in the low-cost carrier (LCC) to 49%, it said in a statement to Thailand’s stock exchange. With a 49% share, (TII) has five directors out of nine on Nok Air (NKA)'s board, compared to four previously, giving it greater control over (NKA)’s strategy.
(TII) expects a fourth-quarter loss of -THB3 billion/-$97.6 million owing to the flooding in Thailand, (TII) President, Piyasvasti Amranand said in an interview with the "Bangkok Times." He indicated that (TII) might report a loss for 2011 given the decline of both local and international passengers.
Amranand said, “This year will see the number of passengers drop to a historic low for the year-end high season, with a possibility that the traffic will remain low in January next year.” He added that travel advisories caused visitors to change destinations although several tourist destinations were not hit by the floods.
In the first nine months of the year, (TII) reported a net loss of -THB4.81 billion, reversed from a +THB11.96 billion net profit in the year-ago period. Passengers carried increased year-on-year +4.2% to 13.9 million and yield rose +7.1%, lifting revenue +9.8% to THB147.37 billion. Expenses increased +15%, owing mainly to a -THB3.33 billion loss on foreign currency exchange and +41.5% hike in the cost of jet fuel.
(TII) also confirmed that it will not proceed with plans to form a joint venture (JV) with Singapore-based Tiger Airways (TGR) Holdings to launch Thai Tiger Airways.
In a statement to the country’ s stock exchange, (TII) said it was unable “to facilitate the joint venture (JV) company within the timeframe limit according to the Memo of Understanding (MOU)” and decided not to proceed with the incorporation of Thai Tiger.
(TII) did not list a reason for abandoning Thai Tiger but since the (JV) (MOU) was signed, it revealed plans to commence a “light premium” sub brand, "Thai Smile Air" in July 2012. (TII) is also increasing its stake in domestic Low Cost Carrier (LCC) Nok Air (NKA) from 10% to 49%. Thai Smile will be a hybrid carrier and utilize new A320s in a two-class configuration, whereas Nok Air (NKA) is a pure "no-frills" operator.
The Airbus Corporate Foundation and ‘Luftfahrt ohne Grenzen’ (LOG or ‘Wings of Help’) have transported some 12 tonnes of humanitarian goods to Bangkok aboard the delivery flight of Thai Airways International (TII)’s newest A330-300 from Toulouse, France. The A330-300 is the first to be delivered out of an order for seven A330-300s placed last year and joins an existing fleet of 20 A330s already operated by (TII).
Frankfurt based ‘Luftfahrt ohne Grenzen’, the German counterpart of ‘Aviation sans Frontières’, has been a regular partner of the Airbus Corporate Foundation for more than >2 years now. The organization supports Airbus (EDS) humanitarian ferry flights from Germany to countries in need, which have been affected by natural disasters.
(TII) President, Piyasvasti Amranand, said, “It was logical for (TII) to collaborate with the Airbus Corporate Foundation to deliver the humanitarian goods to Thailand using our latest airplane. As we receive the first of an order of seven A330-300 airplanes, it seems only natural to use the first airplane’s delivery flight to carry much needed relief cargo.”
“Thailand suffered severe floods this summer. Over >12.8 million people are still affected and in need of medicine, clothing and blankets,” said Andrea Debbane, Executive Director of the Airbus Corporate Foundation: “The Airbus Corporate Foundation, ‘Luftfahrt ohne Grenzen’ and (TII) identified this flight as one more opportunity to transport humanitarian goods to people in need. We would like to thank both our partners and all the donor (NGO)s involved in this project”.
Donor (NGO)s include Apotheker helfen e.V. (“Pharmacists are helping), Humedica, Fraport AG, Coppenrath GmbH and Intermedica GmbH.
In recent years, Airbus (EDS) has built up a global network of airlines and relief organizations to support international humanitarian help. Delivery flights of new to be delivered airplanes have been used on numerous occasions to transport goods to destinations in need all over the world.
The Airbus Corporate Foundation was created to facilitate charitable activities worldwide within an international network of employees and partners. The Airbus Corporate Foundation started its operation on 1st December, 2008 with Airbus (EDS) President & CEO, Tom Enders being appointed Chairman of its Board of Directors. The organization focuses its support on the three themes: humanitarian and community support, youth development and the environment.
Since its launch in December 2008, the Airbus Corporate Foundation has facilitated over >20 relief flights to numerous destinations all over the globe.
Thai Airways International (TII) will deploy its first A380 on regional routes, most likely Bangkok Suvarnabhumi (BKK) - Hong Kong (HKG).
(TII) executives said (TII) will operate between (BKK) and Frankfurt (FRA) only “after we receive the second A380 delivery around November 2012. Upon receiving additional A380s, (TII) will operate to London [Heathrow (LHR)] and then Paris [Charles de Gaulle].”
Daily (BKK) - (FRA) service will commence in January 2013 and (BKK) - (LHR) service will begin in spring 2013.
(TII) has six A380s on firm order and plans to take delivery of the first three A380s next year and three in 2013.
January 2012: Amsterdam-based SkyNRG finished 2011 on a high note by partnering with Thai Airways (TII) to conduct what was called “the first passenger biofuels flight in Asia” in late December (Air China (BEJ) flew a biofuel demonstration flight in October without paying passengers). The (TII) flight from Bangkok to Chiang Mai included a 777-200 with both engines running on a 50-50 fuel mix of bio-jet fuel derived from used cooking oil and conventional petroleum-based jet fuel. As we’ve seen before with these “first” flights, (TII) airline officials said the flight marked the beginning of a collaborative effort to develop a bio-jet fuel supply chain in Thailand. For SkyNRG, which sourced the fuel, this flight followed similar flights
by AirFrance (AFA), Alaska (ASA), Finnair (FIN), (KLM) and Thomson Airways (ATZ)/(TFY), all since July, when bio-jet fuel became standardized.
In their search for commercially viable bio-jet fuel, airlines are leaving no stone unturned in Australia. Lufthansa has signed an agreement with the Perth-based biofuel company Algae.Tec. The plan is to “jointly evaluate the potential” of Algae.Tec’s algae-based crude oil as a low-carbon jet fuel source. Meanwhile, Air New Zealand (ANZ) and Virgin Australia (VOZ) signed similar agreements with the Sydney-based biofuel company Licella, which has technology to convert a range of waste plant material, such as sawdust, corn stalks and sugar cane waste, into bio-jet fuel.
March 2012: Thai Airways International (TII) has taken delivery of a first convertedB747-400F (24459, HS-TGJ) for its cargo division replacing the recently returned 777-200LRF wet-leased from Southern Air (SOF).
April 2012: Bangkok Suvarnabhumi airport (BKK) needs another runway but faces obstacles, a senior Thai official said. Thailand Deputy Transport Minister, Chadchart Sittipunt said that, while there is no problem with land availability, regulatory and noise concerns make it hard to expand. “To add another runway would be difficult,” Sittipunt said. He pointed out it would take another year to finish an environmental impact assessment.
The airport, which was built to handle 45 million passengers annually, is swiftly moving toward its capacity ceiling. Its two runways limit the facility to 76 flights per hour, and growing tourist arrivals and increasing passenger volumes indicate the need for expansion.
“I think we need an extra runway [to serve as] a relief runway,” said Sittipunt.
(IATA) (ITA) has said Thailand should expand Bangkok Suvarnabhumi Airport (SVB). “Thailand needs to urgently build new terminal and runway capacity at Suvarnabhumi to ensure it remains one of the region’s top hubs,” (IATA) said.
(IATA) commissioned consultants Oxford Economics to carry out a study of 54 countries to better quantify the benefits they receive from aviation.
Aviation contributed THB139 billion/$4.48 billion to the Thai Gross Domestic Product (GDP), or 1.5% of the total, through the output of airlines, airports, ground services, their supply chains and the spending of those employed in the sector and in the supply chains. This number rises to THB818 billion or 9% of (GDP) when its contribution to the tourism sector was factored in.
“These urgent expansion projects must be done in full consultation with the airline users to ensure that costs and design are in line with the needs of those that will pay the bill — the airlines,” (IATA) said.
(IATA) also endorsed the view that Don Muang, Bangkok’s former airport, should be available to airlines and aviation services but should remain supplementary to (SVB) airport.
“Don Muang can fulfill a vital role of relief capacity in the short term. But the long-term solution is a single strong hub for Bangkok at Suvarnabhumi,” it said, because one major hub allows for more convenient connections and improves efficiency as airlines do not need to support duplicate infrastructure.
May 2012: Thai Airways International (TII) President, Piyasvasti Amranand was removed from his post by (TII)’s board. Executive VP Strategies & Business Development, Chokchai Panyayong was appointed as acting President. (TII)’s board said it removed Piyasvasti on the grounds he was a poor communicator, which led to disunity in carrying out the company’s marketing strategies.
Thailand’s Prime Minister said the government had nothing to do with Piyasvasti’s dismissal, Thailand’s national news bureau (NNT) reported.
Piyasvasti has publically said his dismissal is motivated by politics or internal corruption and is calling for a clarification. He has also threatened legal action, (NNT) reported, if the cause of his dismissal is damaging to his reputation.
The selection process for a new President is expected to begin within the next three months, (NNT) said.
Thai Airways International (TII) subsidiary, "Thai Smile" is on track to launch July 7 with twice-daily service from Bangkok to Macau.
(TII) Chairman, Ampon Kittiamporn told the National News Bureau of Thailand (NNT) that Thai Smile plans to offer more routes to regional cities as well as to China and India. The carrier will have an all new A320-200 fleet in an all-economy (Y) class configuration although its "Smile Plus" service will offer 30 premium seats with additional space and in-flight services.
Thai Smile’s Managing Director, Woraneti Lahprabang told the (NNT) it does not position itself as a low-cost carrier (LCC) but is operating on a low- to -medium cost base. He said the carrier is tied to mother brand Thai Airways International (TII).
Woraneti told the (NNT) the new lower-cost service was established partly in anticipation of increased intra-(ASEAN) travel in 2015. According to the (NNT), he said that with the "open skies" policy, a number of airlines will compete for the best services in the regional market and their competitive edge lies in their flexible business model and lower operating cost.
(TII) is expected to follow in the foot steps of competitors AirAsia (ASW), Qantas (QAN) and Singapore Airlines (SIA) by launching its own long-haul low-cost carrier (LCC) operation. According to a report by the Centre of Asia Pacific Aviation (CAPA), it is considering either setting up a separate new airline, using its Thai Smile division that is launching in June, although not technically as a separate airline or in partnership with domestic low-cost carrier Nok Air (NKA) that it partially owns.
Boingo Wireless has launched Wi-Fi services at Beijing Capital International Airport (PEK), through an agreement with Newbridge Technologies. It has also launched Wi-Fi services at Phuket International Airport, through an agreement with WLANNet.
June 2012: Thai Airways International (TII) will press on with plans for an ultra low-cost carrier (LCC) despite increasing concerns about growing capacity impacting the Thai aviation market.
(TII) outgoing president, Piyasvasti Amranand told the Foreign Correspondents’ Club of Thailand that (TII) is “working on the setting up of an ultra low-cost airline with Nok Airlines (NKA) sometime next year,” but did not elaborate.
He also said his recent ouster from (TII)’s top job would not derail the plans to launch "Thai Smile" on July 7 with flights to Macau. Smile plans to offer customers premium-light flight services on short routes.
Amranand expressed regret over Thai Tiger, the proposed link up with start-up (LCC) Tiger Airlines (TGR) that was scrapped last year. He said the cancelled plan cost (TII) a substantial part of the Bangkok - Singapore trade. “We would have got a whole chunk of that,” he said.
While he sidestepped the issue of whether (LCC)s have been good for the airline industry overall, he acknowledged they were good for consumers and had forced innovation and competition on legacy carriers. However, he added, “It makes your life much tougher,” he said.
(TII) outgoing President, Piyasvasti Amranand told the Foreign Correspondents’ Club of Thailand that (TII) has good future prospects.
The recently ousted President said (TII) had reported a first-quarter profit of +THB3.6 billion/$118 million. He said preliminary second-quarter figures were good, with a traffic load factor of 78% LF for April.
“Things are moving well,” he said “financially I believe the company is strong.” He said the financial position of (TII) could improve further in the long term as new generation planes entering the fleet have lowered its average age to eight from 11 years and its fuel and maintenance costs. He said the company’s target profit of +THB6 billion/+$189 million was still achievable providing the measures he put in place remain.
Amranand said he had accomplished more than he originally planned in his 2 years and 7 months in the job. He said he had expected to be removed since the new government took over last year.
Thai AirAsia (THA) and Orient Thai Airlines (OTH) are two of the airlines, the Airports of Thailand authority has approached offering incentives to move back from Bangkok Suvarnabhumi International (BKK) to Bangkok Don Mueang International (DMK) according to an article published in the "Bangkok Post" with (OTH) (CEO) accusing (THA) of having demanded exclusive use of Terminal 1 currently used by Nok Air (NKA), Orient Thai Airlines (OTH) and Solar Air ((ICAO) Code: SRB, based at Bangkok Don Mueang International airport (DMK)).
Thailand’s Transport Ministry has launched an internal investigation into what caused the breakdown in the air traffic control (ATC) system at Suvarnabhumi Airport (BKK) on June 21, when all (ATC) radars stopped functioning for one hour, affecting 49 flights, the government news agency "NNT" reported. Airports of Thailand (AOT) has remained tight-lipped on the situation.
According to the "Bangkok Post," the main and back-up power systems simultaneously crashed, causing the delay of 21 take-offs and 15 landings. 13 flights were re-routed or returned to their departure point.
Transport Minister, Charupong Ruangsuwan set up a fact-finding committee, chaired by the permanent Secretary for Transport to probe the system’s malfunction. “The committee is given 15 days to determine the cause of the technical error,” "NNT" said.
The transport minister has also instructed Aeronautical Radio of Thailand and (AOT) to gather information about the outage and create a new operating manual in the event of an emergency.
July 2012: Thai Airways International (TII) has announced a code share with Star (SAL) Alliance partner, Brussels Airlines (DAT)/(EBA). The code share agreement “enables (DAT)/(EBA) to place its SN code on the flights operated by Thai Airways International (TII) in the distribution channels and hence to sell tickets,” according to a (TII) statement.
(TII) operates 3x-weekly service from Brussels to Bangkok.
“As the operating carrier, the code share agreement between the 2 carriers will offer passengers greater choice and access in traveling to and from Bangkok to Brussels, with access to other parts of the European Union (EU) as well as parts of SE Asia,” (TII) Executive VP Commercial Pandit Chanapai said.
(TII) will operate 42 extra inbound and outbound flights using an A330-300 September 17 to November 15. During the period, service to Jeddah will operate 19x-weekly from Hat Yai, as well as 1 daily flight from Phuket and 1 daily flight from Krabi.
Suvarnabhumi International Airport (BKK), Thailand’s gateway airport, will get a third runway, airport officials confirmed. They declined to give a construction timeline, pointing out that approval must be received by several regulatory bodies including the Airports of Thailand and the National Economic and Social Development.
The third runway is expected to be some 4,000 m long, paved with 73-cm thick bitumen, and could be open by 2018, according to the "Bangkok Post."
The "Post" reported the estimated cost will be THB13 billion/$412.7 million; THB7.8 billion will go toward compensating households affected by the construction.
The airport, which was built 6 years ago to handle 45 million passengers, now handles 47 million to 48 million passengers, with growth projected to continue.
Thai Smile (TSM), the new light premium regional sub-brand of Thai Airways International (TII), has taken delivery of its 1st airplane, an A320, in Hamburg, Germany on 28th June.
SEE PHOTO - - "TII-2012-07 THAI SMILE A320."
The delivery sees the THAI group become a new operator of the A320 Family, which joins an existing fleet of wide body Airbus (EDS) airplanes flying with (TII).
Seating 174 passengers, the airplane is powered by (IAE) (V2527-A5) engines. Thai Smile (TSM) will start regional operations on July 7th with daily flights to Macau, before flying domestically to Krabi, Chiang Mai, Surat Thani, and Phuket. These will be followed by new routes to more international destinations.
“We are delighted to take delivery of our brand new A320.” said Mr Woranate Laprabang, Managing Director of Thai Smile (TSM).
The A320 is the 1st of 11 A320s which will be delivered by mid-2015. The 1st 6 aircraft are being leased from (SMBC) Aviation Capital. The company’s (CEO) Peter Barrett, said: “This is our 1st transaction with Thai Smile, and we look forward to building a close relationship with them in the coming years. The fact that we now own and manage 69 A320s and have a further 45 on order is a clear reflection of the high regard in which we and our customers hold this outstanding airplane.”
The remaining 5 airplanes are directly purchased from Airbus (EDS) and will be equipped with new “Sharklet” wing tip devices, which will deliver up to -3.5% in fuel savings.
Thai Airways International (TII) is working to turn its low-cost carrier (LCC), Thai Smile (TSM), into a regional carrier, Managing Director Woranate Laprabang said.
The goal is to draw just under 30% of its revenues from services in Thailand while China, India and the (ASEAN) bloc will make up the remainder of its income.
As part of its strategy, Thai Smile (TSM) will consider taking over routes from parent (TII), look at new route opportunities and potentially open a 2nd base.
The start-up is neither a (LCC) nor a rival to (TII), but a distinct premium lite brand within a multi-brand company, Laprabang said. “You can think of Thai Smile (TSM) as like SilkAir (SLK) to Singapore Airlines (SIA), and DragonAir (DRG) to Cathay Pacific (CAT).”
Thai Smile would take over smaller routes such as Krabi in southern Thailand from (TII). This begins August 16 when it launches flights using an A320 and offering more frequencies. It will begin with 4x-daily service, increasing to 5x-daily during the winter and perhaps increase to 6x-daily in January, Laprabang said.
New opportunities for Thai Smile (TSM) include Siem Reap in Cambodia, Luang Prabang in Laos, Da Nang in Vietnam, Surabaya in Indonesia. In China, it includes cities such as Shenzhen, Chongqing and Hangzhou, as well as Ahmadabad in NW India.
“I am not saying we are flying there tomorrow but these are in the picture,” Laprabang said.
The 2nd base part of the strategy will see the start of services from Phuket to destinations such as Singapore, Guangzhou in China and Mumbai in India. Laprabang acknowledged this will be slow to occur and depends on getting slots at Singapore that it has requested.
(TII) is 1 of Airbus (EDS)’ longest standing customers. The A320 joins an Airbus fleet at (TII) which currently includes the A300, A330 and A340, with the A380 set to enter service with (TII) later this year. (TII) will also be an operator of the all-new A350 XWB.
Thai Airways International (TII)’s 1st (GE-90-115B)-powered 777-300ER has entered service. The 777-300ER is 1 of 8 leased from (BOC) Aviation (SIL). (TII) also has 6 (GE-90-115B)-powered 777-300ERs on order.
August 2012: Thai Airways International (TII) has reported a 2nd-quarter net loss of -THB1.53 billion/-$48.4 million, narrowed from -THB7.9 billion in the year-ago quarter.
“When compared to the same period last year, (TII)’s cabin factor indicated an excellent cabin factor result for the low season period. Unfortunately, (TII) was still subjected to an unfavorable world economic situation and intensified competition.”
(TII)’s consolidated second-quarter total revenues were THB48.5 billion, up +6.5% from last year. (TII)’s consolidated total expenses, excluding foreign currency exchange gains, were THB51.23 billion, down -0.6% year-over-year.
(TII) and its subsidiaries also recorded a foreign exchange gain of +THB1.3 million compared to last year, when (TII) lost THB2.3 billion. Consequently, (TII) and its subsidiaries reported a loss before foreign currency exchange and income tax of THB2.8 million.
This indicated a better performance, when compared to last year, where losses of -THB5.9 billion were reported, (TII) said.
(TII)’s 1st-half profits were +THB2.2 million.
Looking ahead, the company warned it may not meet a full-year profit target of +THB6 billion.
September 2012: Thai Airways International (TII) starts Bangkok to Sapporo next month, its 6th Japanese destination.
(TII) has named media veteran, Sorajak Kasemsuvan as (TII)’s new President, effective in October.
Sorajak will replace Piyasvasti Amranand, who was removed from his post by the state-run carrier’s board.
Sorajak is former Chairman of the majority state-owned broadcaster (MCOT). He holds a Ph.D. in International Law, has worked for the BBC's Thai-language service and has been a Vice Minister in Thailand’s Foreign Ministry.
Thai Airways (TII) has launched Panasonic Avionics/AeroMobile exPhone service onboard 14 777-300ER and 747-400 airplanes.
The in-flight connectivity solution will allow passengers to make and receive calls, send and receive Short Message Service (SMS) text messages, and use (GPRS) service for email and Internet access. The AeroMobile network becomes active at 19,685 ft and can be used throughout the flight while at cruising altitude.
Thai Airways (TII) has taken delivery of its 1st A380, which flew from the Airbus (EDS) plant in Toulouse to Bangkok.
The new A380 was handed over to (TII)’s Executive VP Technical Captain Montree Jumrieng by Airbus (EDS) Executive VP Sales & Marketing Kiran Rao at a ceremony in Toulouse, making (TII) the 9th airline to operate the A380. (TII) has a total of 6 on order, due for delivery in November and December this year and March, September and October 2013.
The A380 will enter commercial service on October 6, initially serving Hong Kong and Singapore, with services to Europe starting after delivery of the second A380.
Frankfurt will be the 1st European destination, with A380 operations due to launch December 15, followed by Paris on February 16. Tokyo will be added on January 16, followed by Osaka on August 16, and Sydney on September 16, 2013.
The (TII) A380 will not operate to London until after delivery of the fifth A380, with services expected to begin in mid-October 2013. Other routes being considered for the A380 include Macau and Bangalore, Captain Jumrieng said.
The A380 is configured for 507 passengers, with 12F first, 60C business and 435Y economy seats, all equipped with on-demand in-flight entertainment (IFE) systems, communications outlets and individual power supply. The A380 is powered by Rolls-Royce (RRC) (Trent 900) engines and becomes the 88th airplane in the (TII) fleet.
At the delivery of the A380, (TII)’s Executive VP Technical, Captain Montree Jumrieng said that major issues hampering progress include rising fuel costs, increasing competition (particularly from low cost carriers (LCC)s) and slowing economic growth.
The market share of (LCC)s in the region had grown “dramatically,” Jumrieng said, pointing out that in the seven-year period from 2003 - 2010, (TII)’s share of the domestic market had fallen from 83.8% to 39.8%, while in the same period, the market share of (LCC)s had increased from 16.2% to 45.2%. Correspondingly, (TII)’s average growth rate during the period fell -2.3%, while (LCC)s enjoyed an average growth rate of +32.4%.
During the same period, in the regional market, (TII)’s market share fell from 42.2% to 33.2%, while (LCC)s increased their market share from 2.1% to 19.1%. Average growth rate for (TII) for the period was +3.2%, compared with a significant +46.8% for (LCC)s.
(TII) has already responded to the challenges by launching Thai Smile (TSM), which it describes as a low- to medium-cost regional carrier, operating A320s in a two-class configuration. It began operations in July this year.
(TII) is also a major shareholder in the low cost domestic carrier Nok Air (NKA), which is reportedly planning to launch international operations in 2013.
Plans for (TII) in potential partnership with Nok (NKA) to launch a low cost carrier (LCC) stalled this summer, and Jumrieng said (TII) was not looking to launch another brand outside the three it already has in place.
Jumrieng also highlighted the threat of aggressive marketing by Middle East carriers and airports promoting themselves as a one-stop connection between east and west, a role traditionally enjoyed by the likes of Singapore and Bangkok.
However, he said (TII) would continue to seek opportunities for growth and build its strategic competitiveness. He highlighted the implementation of the (ASEAN) Economic Community (AEC) in 2015 as presenting new opportunities for (TII). This will see border controls removed between the 10 member states (Brunei Darussalam, Cambodia, Indonesia, Lao (PDR), Malaysia, Myanmar, Philippines, Vietnam, Thailand, and Singapore), facilitating the free movement of goods, services, investment, skilled labor, and a freer flow of capital.
October 2012: Thai Airways (TII) increased its presence in Japan on 28 October, as the Star Alliance (SAL) airline launched 3x-weekly flights from its hub in Bangkok (BKK) to Sapporo Chitose (CTS), making the northern-Japanese city the 6th destination offered in the country. 3x-weekly, A330-300-operated flights are offered on the new route.
SEE ATTACHED - - "TII-2012-10 - SAPPORO LAUNCH." ON THE PHOTO THE TALLEST FIGURE IS SOROJAK KASEMSUVAN, (TII) PRESIDENT WITH PANDIT CHANAPAI, (TII) EXECUTIVE VP COMMERCIAL DEPARTMENT TO HIS LEFT.
(TII) will increase its Bangkok to Yangon service from 2x- to 3x-daily, before further increasing it to 4x-daily on February 1 2013.
(TII) will add 4 frequencies to services on the Phuket to Seoul Incheon and Bangkok to Taipei Taoyuan routes, increasing flights on these routes to daily and 25x-weekly, respectively.
(TII) will add two weekly frequencies on services from Bangkok to Busan, Brisbane, and Stockholm, while its daily Phuket to Hong Kong service will be extended to Taipei Taoyuan.
(TII) will also add a weekly frequency on services from Bangkok to Nagoya, Islamabad, Karachi, and Brussels.
(TII) will also reduce the frequency of its Bangkok - Copenhagen service from 10 to nine times weekly.
(TII)'s services from Bangkok to Mumbai and Paris will be reduced from 10 times weekly to daily. Flights from Bangkok to Denpasar and Frankfurt will be reduced by two flights weekly.
The A380 airplane will be deployed on a daily service to Frankfurt and Paris, starting on 15 December and 16 February 2013, respectively.
(TII) will also terminate its twice daily Bangkok - Koh Samui service on 16 January 2013. Bangkok Airways (PGB) is the other operator on the route.
November 2012: Thai Airways (TII) is in talks to acquire up to 12 leased and purchased A350-900 XWBs for delivery between April 2016 and November 2017. “The A350-900 is still on the table, about six of them,” (TII) Product Design & Development Director, Rangsiman Mokkhasmit said. “The A350 is still not fixed with Airbus (EDS). It has not been finalized. Most likely it will be our airplane in the future.”
Although Mokkhasmit mentioned only six A350s, his fleet overview showed plans to introduce eight leased A350-900s between April 2016 and July 2017, in addition to four purchased A350-900s slated to arrive between May 2016 and November 2017. He added that the A350 deal is likely to be finalized next year. “There is a lot of change in our organization. We have a new President and board. I don’t know if there will be any more changes, but we will need to wait until the management team settles down.”
Mokkhasmit said the A350s will be configured with three classes. Together with 14 777-300ERs that (TII) has on order, the A350s will be used to replace 12 of (TII)’s 18 747s. The 747s will be phased out in three groups of six airplanes, although the last six to leave will be refitted with new cabins as an interim measure. Eight 777-200s will be upgraded in the 2013 second quarter.
(TII) has six A380-800s on order.
December 2012: Thai Airways (TII) has again adjusted the strategy of its new hybrid unit Thai Smile as the group struggles to determine the ultimate product mix and network. The latest changes include a dedicated business (C) class cabin, which will be introduced in 2013 following delivery of Thai Smile’s seventh A320, and plans to convert the unit into a full subsidiary. Thai Smile also continues to tweak its network, dropping earlier plans to launch services from Bangkok to Hyderabad, and Phuket to Singapore.
As Thai Smile represents an experiment for Thai Airways (TII) and the overall Asian market, it is not surprising to see almost continual changes to the operation. But all the changes reflect flaws in Thai Smile’s initial business model, which falls between low-cost and full-service. Thai Smile will likely evolve from a hybrid into more of a pure full-service regional subsidiary similar to Singapore Airlines (SIA)’s SilkAir (SLK)and Cathay Pacific (CAT)’s Dragonair (DRG).
Thai Smile launched services on 07-July-2012, initially operating two daily flights between Bangkok and Macau. The new Thai Smile, which for now is not considered a separate airline as it uses Thai’s "TG" code and air operators’ certificate (AOC), has since added domestic services from Bangkok to Chang Mai, Krabi, Phuket, and Surat Thani. It also operates from Chang Mai to Phuket, the first of what is expected to be several point-to-point routes from Phuket and Krabi that bypass Thai (TII)’s Bangkok hub.
January 2013: Thai Smile (TSM) (based at Bangkok Suvarnabhumi International (BKK)) Managing Director, Woranate Laprabang has told the Centre for Aviation that Thai Airways International ((IATA) Code: TG, based at Bangkok Suvarnabhumi International (BKK)) (TII) would have decided in principle back in November of 2012 that Thai Smile (TSM) will be transitioned from a division to an independent airline. (TSM) currently operates as a separate business unit of Thai Airways (TII) and operates its four A320-200s under the same air operator certificate (AOC) and (IATA) code. Its product has been positioned between low-cost carriers (LCC)s and Thai (TII) mainline and it currently operates on routes from Bangkok's Suvarnabhumi airport to Chiang Mai International (CNX), Krabi (KBV), Macau International (MFM), Phuket International (HKT) and Surat Thani (URT), as well as between Chiang Mai and Phuket.
THAI Smile (TSM), a subsidiary of THAI Airways International (TII) Public Company Limited will become the first Airbus A320 commercial operator to benefit from Airbus (EDS)’s Flight Hour Services Tailored Support Package (FHS-TSP) following a contract signed between (TII) and Airbus (EDS).
The contract, which will run for 15 years, provides an extensive scope of A320 line replaceable units (LRUs) and spare parts availability, (LRU)s repairs, logistics services, tools availability, (APU) and nacelle services. An on-site Airbus (EDS) team will assist in daily spares management ensuring THAI Smile’s airplanes technical dispatch.
This latest selection by (TII) re-affirms its confidence in (EDS)’s Flight Hour Services (FHS), less than a year after signing an (FHS-TSP) contract for its A380s. It also marks an important step in Airbus’s (FHS) strategy to enter in the single-aisle market. (EDS)’s (FHS) now covers more than >100 airplanest with operators of A320, A330, A340 and A380 fleets.
Captain Montree Jumrieng, Executive VP of (TII) Technical Department said: “With the experience and professional Flight Hour Services support already being demonstrated by Airbus (EDS) on our A380 fleet, we are confident that this new Airbus (FHS-TSP) contract will likewise ensure that our A320 operations will run as smooth as silk.”
THAI Smile (TSM) is a new service by THAI Airways International (TII) with a fleet of all new A320s. (TSM) operates on routes within Thailand and to selected international destinations, providing connections with (TII) and Star (SAL) Alliance member airlines. THAI Smile (TSM)’s fleet will consist of 11 brand new A320-200 airplanes in an all-economy (Y) class configuration of 174Y seats.
The (TII) Public Company Limited is a major airline in Asia and one of Airbus (EDS)’s longest standing customers. (TII) already operates more than >50 Airbus airplanes across all Airbus (EDS)’s families, including three A380s.
February 2013: Thai Smile (TSM) launched Bangkok service to Udon Thani (3X-daily) and Ubon Ratchathani (2X-daily) on February 1.
Thai Airways (TII) has a maintenance training collaboration agreement with Airbus (EDS) under which it will become an Airbus local maintenance training center, based in Bangkok, providing maintenance type-training capabilities for the A320 and A330.
SEE ATTACHED FROM "AIRWAYS" MAGAZINE - - "TII-2013-02 - UPDATE-A/B/C/D/E/F/G/H/I."
March 2013: This is a report looking at the Thai Airways (TII) Group performance from 2012 and outlook for 2013. The first part looked at Thai (TII)’s mainline operation, which has been impacted by unfavorable economic conditions on long-haul routes and faces increasing competition in Asia. This part looks at Thai Smile (TSM), a new hybrid unit that the Thai Airways (TII) Group launched in July 2012.
2013 will be a key year for Thai Smile (TSM) as the unit rapidly expands and continues to evolve its hybrid model. (TSM) is adding five international routes over the next month, giving it a network of six international and seven domestic routes. Several more destinations, primarily international, are expected to be added in 4th Quarter 2013.
2013 will also likely see (TSM) transition from being a unit of (TII) to a 100%-owned subsidiary. (TSM) was launched as a unit because using the (TII) air operators’ certificate (AOC) was seen as a quicker and cheaper solution. But (TII)’s board is expected to soon approve a proposal to convert (TSM) into a subsidiary, which would see it apply for its own (AOC).
May 2013: Thai Airways International (TII) is facing a new set of challenges. In the past it has had a long history of money making, helped by flying tourists to its homeland. But high oil prices, political unrest, natural disasters, growing low cost carrier (LCC) competition and over-exposure to a weakening European market led to a rare loss in 2011 and only slim profits in 2012. And unfortunately, 2013 is not off to a good start. The first quarter is usually (TII)'s strongest, when tourists from cold weather regions flock to Thailand, but this quarter's net profit was just +$148 million, excluding heavy foreign exchange gains. Cargo traffic is weak, as does Europe's weak economy and slower growth throughout Asia more generally. In addition, a stronger Thai currency, although it helped keep fuel costs flat despite a +7% capacity (ASK) expansion, made Thailand more expensive for foreigners to visit. Japan is a big market, and the weaker yen also had a negative impact on inbound tourism. (TII) is busy renewing its fleet, while growing its Thai Smile and Nok Air (NKA) affiliates, entering the improving hot market of Myanmar, and taking on new A380s. It also hopes to generate more connecting traffic through Bangkok, making it less susceptible to the ebbs and flows of the tourist market.
Amadeus and Thai Airways International (TII) have signed a long-term, full content agreement that enables (TII) to reach Amadeus’ network of travel agencies across the world. Amadeus users worldwide will now have guaranteed access to the entire range of fares, schedules and availability relating to more than >18 million seats sold annually by (TII) and its new brand, THAI Smile (TSM).
June 2013: Thai Airways (TII) began daily, A380 service on its London Heathrow - Bangkok service. An A340-600 will fly its second daily flight on the route.
777-3ALER (41524, HS-TKO "Vimolmassiri"), (BOC) Aviation (SIL) leased.
July 2013: Delivery of 27th 777 to Thai Airways International (TII) carried a cargo load of childrens backpacks to be distributed to 1,000 needy Thai children - - SEE ATTACHED - - "TII-2013-07 - CHILDRENS BACKPACKS."
777-3ALER (41525, HS-TKP), (BOC) Aviation (SIL) leased.
August 2013: Thai Airways (TII) reported a second-quarter net loss of -THB8.4 billion/-$270.8 million, a performance that more than quintuples its -THB1.5 billion net loss in the year-ago period.
See video "A380 THAI ROYAL FIRST CLASS" - -
September 2013: INCDT: Thai Airways (TII) A330-321 (PW4164) (66, /95 HS-TEF "Song Dao") skidded off the runway after landing at Bangkok Suvarnabhumi Airport late Sunday night September 8th.
(TII) President Sorajak Kasemsuvan, said the A330 had a landing gear malfunction. He said sparks were noticed in the vicinity of the right landing gear and the accident was under investigation.
The airplane was carrying 288 passengers and 14 crew (FC - CA). They evacuated using the emergency exits. (TII) said 13 passengers suffered minor injuries during the evacuation. Flight TG679 was arriving from Guangzhou and landed at 23.20 hours local time.
An interesting quirk to the Thai Airways (TII) A330-300 landing accident at Bangkok Airport. It appears (TII) rapidly dispatched a crane and workers to paint over the Thai Airways name and logo on the side of the airplane and on its tail - - SEE PHOTO - - "TII-2013-09 - INCDT." A (TII) spokesperson told a British newspaper, "The Guardian," that the action was taken in line with a "crisis communications rule" to protect the airline's image.
But when everyone already knows it's a Thai Airways (TII) airplane, it's unclear what a blackout achieves, other than perhaps drawing even more attention to the airplane and the incident.
The airplane skidded off the runway after landing, but everyone safely evacuated and (TII) said just 13 of the 302 passengers and crew on board suffered minor injuries in the evacuation.
October 2013: Thai Airways (TII) will add two flights to its 4x-weekly, Bangkok - Moscow Domodedovo 777 service on December 24.
777-3ALER (41524, HS-TKR), (BOC) Aviation (SIL) leased. A380-841 (125, HS-TUE "Si Racha"), ex-(F-WWSO) delivery.
December 2013: Thai Airways International (TII) announced the resignation of Mr Sorajak Kasemsuvan, its President. Mr Kanit Sangsubhan, Chairman of the Executive Board of THAI Board of Directors declared that Sorajak Kasemsuvan (TII) President, has tendered a letter of resignation to the Board of Directors, citing "health reasons."
The official statement from (TII) indicated that "as the advice by medical physicians to take a medical leave of absence for a minimum of 2 - 3 months would have an impact on the duties of the President on Company operations, Mr Kasemsuvan has, therefore, submitted his resignation from the position of (TII) President, as well as from Nok Air (NKA) Board of Directors and Thai Smile (TSM) Board of Directors".
The Thai Airways (TII) Press Release indicated that "the airline's Board of Directors has approved and accepted the resignation of Mr Kasemsuvan, after having considered that Mr Kasemsuvan has demonstrated much diligence in the duties of the President since taking this position in 2012, and having considered the medical reasons for the resignation and potential impact to the Company. The date for the resignation to take effect shall be from January 2, 2014."
However, it has been observed that relations between the Thai President and the Board of Directors were not at their best. The Board of Directors and his politically influential Chairman, Ampon Kitiamporn were at odds with the President. The Board of Directors in fact blamed the outgoing (TII) President about his inability to turn around (TII)'s predicament. Thai Airways (TII) has seen its financial performance worsening this year as the airline lost -THB 8.4 billion in its second quarter of the financial year compared to 1.5 billion a year earlier. Low morale, nepotism, political interferences, have guided Thai Airways (TII) to be plagued by many problems. As (TII) belongs to the government's Ministry of Finance, most of the members of its Board of Directors are politically appointees. And some of the time, it has been considered that this board of directors has been more concerned about its own financial rewards than the well-being of the airline.
This explains why (TII) Presidents have been known to feel rapidly "sick" after a few months at the top, as they have in reality little space to implement a real growth strategy with a strong vision. Mr Kasemsuwan learned that it could change very little within the current structure of the carrier. The departure of the President appears rather as an embarrassment for Thailand's flag carrier. Unfortunately, this gesture is unlikely to change the fundamentals at Thai Airways International (TII). In fact, without a total revamp of the airline, (TII) could deteriorate to a second-tier airline.
February 2014: Thai Airways International (TII) is launching THAI Sky Connect, which has added in-flight connectivity on its A330-300 and A380-800 airplanes. The connectivity is provided by OnAir.
THAI Smile (TSM), a subsidiary of THAI Airways International (TII) and Airbus (EDS) have extended their existing 15 years ‘Flight Hour Services – Tailored Support’ (FHS-TSP) contract, adding nine additional leased A320 airplanes to cover its entire fleet of 20 A320 airplanes.
The contract provides an extensive scope of A320 line replaceable units (LRUs), guaranteed spare parts availability through Pool access service and on-site stock at THAI Smile (TSM)’s main base and selected outstations, repair services, logistics services, tools availability, (APU) and nacelle services.
This extension re-affirms THAI Airways International (TII)'s confidence in Airbus’ Flight Hour Services, a year after signing the original A320 (FHS) agreement with Airbus, and less than two years after signing an (FHS-TSP) contract for its (TII) A380s. It also reinforces Airbus (EDS)’ (FHS) strategy to grow in the single-aisle market as well as in the wide body sector.
Didier Lux, Senior VP Customer Services at Airbus said: “We are extremely pleased that THAI (TII) has re-confirmed its trust in the quality of our technical services. This is a strong motivation for us to further increase our activities in the very competitive market.”
Captain Montree Jumrieng, Executive VP of THAI Airways International (TII) Technical Department said: “Over the years, Airbus (EDS) has shown its ability to provide a consistently high quality service and demonstrated a strong collaborative working relationships. This has formed the foundation of this extended (FHS-TSP) agreement to cover the nine additional airplanes of our A320 fleet.”
THAI Airways International (TII) is a major airline in Asia and one of Airbus’ longest standing customers. The carrier already operates more than >50 Airbus airplanes across all Airbus’ families.
Airbus Flight Hour Services (FHS) consists in guaranteed solutions ranging from components supply and repair to full airframe maintenance. Airbus’ (FHS) now covers more than >130 airplanes with operators of A320, A330 and A380 fleets.
March 2014: Home to an estimated population of 67 million, Thailand is the second largest economy in Southeast Asia (after Indonesia). It is a newly industrialized country and is becoming a major exporter. In addition, tourism contributes significantly to the Thai economy, with most of the visitors arriving by air. According to "Innovata" schedule data for this March, Thailand currently has 33 commercial airports providing scheduled airline services, of which 22 cater for domestic flights only. The country’s biggest international airports (in terms of annual traffic) are Bangkok Suvarnabhumi, Bangkok Don Mueang, Chiang Mai, Hat Yai, Phuket, and Chiang Rai. These six airports have increased their combined annual passengers by +64% since anna.aero last looked at this country market four years ago.
Annual passengers were up +16% in 2013. Analysis of data facilitated by Airports of Thailand (AOT) reveals that the largest six Thai gateways handled together over >88 million passengers in 2013, +16% more than in the previous year. Except for Suvarnabhumi, which noted a modest decrease of -3.1%, all airports experienced growth when compared to 2012 data, including an impressive increase of over >175% for Don Mueang, due to becoming increasingly attractive to low-cost carriers (LCC)s.
Looking at passenger data since 2005, the combined traffic of the six largest airports noted over >87% growth in 2013. In fact, traffic was up every year, with the exception of 2008 and 2009, when the country was affected by both the Thailand political crisis along with the global recession. Notably, Phuket was the only one of these six airports that managed to grow (+1.4%) over the two years.
Bangkok’s airports maintained an almost 80% share of total traffic over the last nine years, which saw the majority of operations move from Don Mueang to Suvarnabhumi, when the latter was opened in 2006. As growing congestion at Suvarnabhumi started to become an issue (it was designed to handle 45 million passengers per year, but processed 48 million in 2011), the country’s government encouraged all low cost carriers (LCC)s, charter and non-connecting services to relocate back to Don Mueang.
Thai Airways (TII) is still the #1 airline. Looking at "Innovata" schedules for this March, the top 12 carriers serving the Thai market account for over >75% of all weekly seats and flights respectively. The flag carrier, (TII) is still the dominant player, as it commands a quarter of seats to and from Thailand even though it decreased its weekly capacity by -5.3% when compared to the same week last year. The Star (SAL) Alliance member, which carried over >21 million passengers in 2013, operates on a total of 81 routes, of which 11 are domestic services. Surprisingly, (TII) is the second biggest player on the domestic sector, behind Thai AirAsia (THA), offering a 26% share of weekly seats. In addition, Hong Kong is (TII)’ most frequently served international destination with a combined four daily flights from Suvarnabhumi and Phuket.
Total weekly seat capacity in Thailand has gone up +14%, with nine out of the top 12 airlines recording growth, when comparing data from this February with the same week last year. A new entrant into this year’s ranking, Transaero Airlines (TRX) is also the fastest growing carrier, managing to increase its weekly capacity by +4,093 seats or +47% over the last 12 months. With the exception of Thai Airways (TII), both Korean Air (KAL) and Cathay Pacific Airways (CAT) experienced capacity declines, with (CAT) recording the greatest reduction (-27%) in the past year, due to dropping its thrice-weekly flights from Suvarnabhumi to Mumbai and reducing its frequency from six times daily to 31 times weekly on the 1,712 km sector between Bangkok’s main airport and Hong Kong.
China is the top international market - - SEE ATTACHED - - "TII-2014-03-TOP 12 MARKETS." While the domestic sector is Thailand’s largest market accounting for half of all weekly seats, a total of 56 countries can be reached non-stop from Thai airports according to "Innovata" schedule data. At over >84,000 weekly seats and +17% more than in March 2013, China is the dominant international market, being served by 20 carriers with a combined 452 weekly flights from Suvarnabhumi, Don Mueang, Chiang Rai, Chiang Mai, Phuket, and Krabi.
Both new entrants into this year’s ranking (Myanmar and Russia) have shown the most significant growth in weekly seats, +47% and +34%, respectively. Golden Myanmar Airlines (GMY), Asian Wings Airways (AVM), and Nok Air (NKA) have all started serving routes between Thailand and Myanmar over the last 12 months with a combined 32 weekly flights, with (NKA) commencing four weekly flights from Yangon to Don Mueang on November 1st. On the other hand, India has noted the greatest reduction when compared to the same week last year (-11%), due predominately to Philippine Airlines (PAL) and Cathay Pacific (CAT) dropping their twice-weekly flights from Bangkok’s main airport to Delhi and Mumbai, respectively.
Thai Airways International (TII) has signed up for Airbus (EDS)’s Smarter Fuel Efficiency (SFE) system. “(SFE) will serve the objective of efficiently monitoring fuel consumption and maximizing the [efficiency], utilization and reliability of our fleet,” Thai Executive VP Technical, Captain Montree Jumrieng said.
The (SFE) system is a result of a partnership between Airbus (EDS) and (IBM), and provides a tailored fleet data management system for commercial airlines. The agreement between (TII) and Airbus (EDS) will, after full development, provide a fully integrated solution capable of handling and interpreting ‘big data’ from the airline’s airplanes to optimize fuel usage across its whole fleet.
The deal will also see (TII) sign up for Airbus (EDS)’s Smarter Mobility solution to support Line Maintenance and Engineering activities using mobile troubleshooting and Maintenance Repair & Overhaul (MRO) data.
April 2014: (HAECO) (ITM) Limited and Thai Airways (TII) have embarked on a long-term collaboration in component repair. (HXITM) has identified a list of components that will be repaired at Thai Airways (TII)’s facilities in Bangkok. The collaboration also leverages extensive component capabilities of (HAECO) in Hong Kong.
May 2014: Thai Airways (TII) reported a first-quarter net loss of -THB2.62 billion/-$804 million, reversed from a net profit of +THB8.29 billion in the year-ago period. (TII) said it was “prominently impacted” by recent political unrest in Bangkok.
First-quarter operating revenue was THB49.5 billion, down -11.6%, while expenses were up +0.4% to THB51.8 billion, producing an operating loss of -THB2.23 billion.
(TII) said the losses were mainly driven by the dramatic slowdown in visitors to Thailand. This quarter it reported carrying 4.81 million passengers, down -15.3% year-over-year. (MRPK)s were down -12.6% to 14.68 billion. Load factor fell -9.7 points to 70.1% LF. Yield was down -1.1 %.
Thailand airports are calling for tighter security and more stringent identity checks following the Thai Army’s takeover of the country on May 22nd. In addition to passports, passengers are being advised to carry national identity cards and allow extra time when traveling to Suvarnabhumi Airport.
Airports of Thailand Chairman, Sita Divari, said, “Despite the coup d'etat, the operations of all (AOT) airports are continuing as usual.”
On May 22nd, Army chief Prayuth Chan-Ocha declared military rule and imposed a nationwide curfew from 10 pm to 5 am, which is likely to hit both international and domestic airline operations.
International criticism has come from the USA, France, the UK, and other Western countries that supply a large proportion of Thailand’s tourist arrivals, so the takeover will likely hit the Thai tourism and travel industry hard.
The latest political maneuver comes on top of an already poor business climate. Flag carrier, Thai Airways (TII) recently reported a first-quarter net loss of -THB2.62 billion/-$804 million, down from a net profit of +THB8.29 billion last year, which was directly attributed the slump to the “prominent impact of recent political unrest.”
July 2014: Thai Airways International ((IATA) Code: TG, based at Bangkok Suvarnabhumi) (TII) has taken delivery of its first 787-8 (35315, HS-TQA), from Boeing (TBC) following its arrival at Bangkok Suvarnabhumi on July 18. The twinjet is the first of eight 787s the Thai carrier has on lease from Dutch leasing firm, AerCap (DEA).
The 787 will make its commercial début with (TII) on July 25 on Bangkok Suvarnabhumi to Chiang Mai flights.
With the delivery of the second 787-8 in September, (TII) will deploy the type onto international flights to Perth International, Australia and Tokyo Haneda, Japan. Thereafter, with (TII)'s third 787-8 due in October, so the type will be deployed on flights to Tokyo Narita, Kuala Lumpur International, and Hanoi.
The fourth 787-8 airplane is expected in December and will operate Nagoya - Chu-bu flights.
Two 787-9s are expected in 2017.
August 2014: Thai Airways (TII) reported a second-quarter net loss of -THB7.7 billion/-$241 million, narrowed from a net loss of -THB8.4 billion in the year-ago quarter. (TII) attributed its continued negative performance to the ongoing political unrest that has resulted in a marked decline in foreign tourist arrivals. (TII) said the number of foreign tourists arriving at Bangkok’s Suvarnabhumi and Don Muang international airports was down -22.6% year-over-year, with regional tourist arrival particularly hard hit, down -28.4%. In addition, (TII) faces intense price competition from the booming low-cost carrier (LCC) sector.
Total operating revenue for the quarter was THB42.8 billion, down -9.2% year-over-year. Second-quarter operating losses deepened to -THB6.4 billion from -THB2.9 billion in the year-ago period. Total operating costs decreased -1.7% to THB49.2 billion, but (TII) said fuel and oil expenses were +1.4% higher than last year, largely due to the weakness of the Thai baht, and accounted for 35.8% of total costs.
Second-quarter passenger numbers fell -17.3% to 4.23 million. (ASK)s were down -4.9% to 19.9 billion and (RPK)s decreased -14.3% to 12.6 billion. Load factor declined -7 points to 63.5% LF. However, passenger yield increased +5.1% and total yield was up +1.1%.
Looking forward, Thai Airways (TII) said global economy recovery would likely continue over the second half, but cautioned it would be “slow and fragile.” It cited international conflict, and in particular, the ongoing conflict between Ukraine and Russia, as having a detrimental effect on foreign currency exchange, fuel prices and security measures (key factors in (TII)’s operation).
(TII) said that any improvement in the Thai economy over the next six months would likely feed into a recovery in the tourism sector. (TII) cautioned, however, that “the continued expansion of the airline industry, especially the low-cost carriers (LCC), will further intensify the competitive environment.”
(TII) has prepared a business turnaround plan to be implemented in the second half, aimed at better positioning (TII) to handle increased competition “and the dynamic changes facing the future aviation industry more effectively.” The plan focuses on liquidity adjustment, revenue improvement, cost reduction and control, risk management, internal processes and human resources (HR) management, and information technology (IT) enhancement. (TII) said it was confident the measures would enable it “to generate a sustainable operating profit in the future.” In the meantime, (TII) is working with the Ministry of Finance to secure and accelerate loans necessary to maintain liquidity.
Thai Airways International (TII) said it would cut -1,500 jobs this year, and expects to return to profit by the fourth quarter, earlier than forecast, helped by the year-end holiday season.
The loss-making national carrier (TII) also said it would shed -6,000 jobs, or over quarter of its full-time employees, by 2018 as part of a restructuring plan approved last month.
Thai Airways (TII) had said it planned to cut costs and prioritize certain routes to return to profit as soon as the middle of next year.
Chairman, Prajin Juntong told reporters (TII) now expected to see a profit in the last quarter of this year. But for the whole of 2014, (TII) expects to report a net loss that would be slightly wider than the -12 billion baht/-US $376 million loss in 2013, Prajin added.
(TII), which employs 25,000 people and another 5,000 in subcontracted staff, has racked up four quarters of losses, partly due to high operating costs.
Thailand's new military rulers singled out (TII) as the first state enterprise to undergo reform after taking power in May from a government accused of corruption.
The military take-over was preceded by months of protests, which hit the tourism sector, and the overall economy.
777-307ER (42112, HS-TKW), delivery.
SEE VIDEO - - "VISIT THAILAND" - -
October 2014: The continuing sluggish performance of Thailand’s commercial aviation industry has prompted a series of changes at Thai airlines, while the nation’s military government attempts to alter the image of a country that has lost the confidence of tourists owing to ongoing political unrest.
The latest move is a cancellation by Thai Airways International (TII) of its sole remaining Africa destination, Johannesburg. (TII) will cease its 3x-weekly flights to Johannesburg from January 2015.
The move comes as part of a call from new (TII) President, Siwakiat Jayema for a -THB4 billion/-$126 million cost-cutting exercise. Siwakiat has also committed to cutting more than -6,000 jobs at the flag carrier (TII) over the next four years.
Siwakiat is the third President that (TII) has seen in a little over six months. He took over from temporary President, Chokchai Panyayong in July, who replaced previous incumbent Sorajak Kasemsuvan in January, following the latter’s resignation in December last year.
The poor performance of (TII) (it reported a net loss of -THB7.7 billion in the second quarter) has been blamed on a general lack of confidence in Thailand as a tourist destination, plus endemic over-staffing at (TII).
Recent (IATA) Premium Traffic Monitor estimates point to a continuation of the downward trend in numbers, citing “significant falls in tourism and exports during recent months, when compared to a year ago.”
As a result, (TII) is not the only local carrier seeing a management revolving door. Thai low-cost carrier (LCC) Nok Air (NKA) recently announced that Montree Jumrieng and Suraphon Israngura Na Ayuthya would replace two existing board members, and that former (TII) executive, Chokchai Panyayong would also join (NKA). Last week, Nok Air (NKA) announced it would boost its holding in long-haul joint venture (JV) NokScoot (formed with Singapore (LCC) Scoot (SCT)) with an injection of $7.3 million as of late October.
(NKA) said this would increase its holding to 47.5% of the new Thai long-haul company operating out of Don Mueang International Airport. However, the original launch of NokScoot planned to see Scoot (SCT) hold 49% and Nok Air (NKA) 51%; this points to a dilution of the original division with a third company, Pueannammitr, carrying a crucial voting balance of shares.
Figures from AirAsia (ASW) also indicate that although its Thai AirAsia (THA) increased capacity out of its Don Mueang Thai base to 3.61 million seats in the second quarter, compared to 2.9 million the previous year (a +23% increase), its load factors dropped -4 points from 82% LF to 78% LF as demand slackened.
“(THA) has lowered its average load factor estimate,” Thai AirAsia (THA) Commercial Operations Director, Santisuk Klongchaiya said. He added that as a result, (THA) will delay the delivery of three airplanes set for this year, in line with the recent statement by AirAsia (ASW) (CEO), Tony Fernandes that “expansion is necessary, but we will never stretch ourselves.”
February 2015: Thai Airways (TII) will cease Bangkok - Moscow flights from March 29 and will close several loss-making routes as a part of its restructuring. It will also cease Madrid and Johannesburg service due to Russia’s economic problems, according to (TII).
Thai International (TII) said it plans to resume Moscow flights as soon as the economic situation becomes stable.
Moscow - Bangkok is one of the most popular international routes from Russia, according to Russia’s "Air Transport Sourcebook." In 2013, Russian airlines carried 523,996 passengers between the two capitals.
Thai Airways (TII) has faced tough competition from Russian airlines. The Russian travel market has provided Thailand with 1.5 million tourists per year.
March 2015: News Item A-1: Thai Airways (TII) begins daily London - Bangkok Airbus A380-800 service on July 1.
This new A380-800 will fly out of London Heathrow (LHR)’s Terminal 2.
News Item A-2: Thai Airways International (TII) Public Company signed a 12-year OnPoint agreement for the Maintenance Repair & Overhaul (MRO) of (TII)’s (GE90-115B) engines on 14 Boeing 777-300ERs.
April 2015: News Item A-1: Japan's Civil Aviation Agency has agreed to temporarily lift a ban preventing Thailand-registered airlines from operating charter flights to Japan from April 11 to May 31, Thai Transport Minister, Air Chief Marshall Prajin Junthong said.
Citing safety concerns highlighted by an international audit, the agency late in March imposed a ban on Thai airlines from operating new charter and scheduled services to Japan.
Nearly 120,000 travellers seeking to go to Japan on flights operated by national carrier, Thai Airways International (TII), as well as long-haul, low-cost carriers (LCC)s like Thai AirAsiaX (THX) and NokScoot (NSC), had been expected to be affected by the ban.
Under the provisional lifting of the ban, airlines are not permitted to change the type of airplanes they have indicated they will operate, Prajin said. Scheduled flights to Japan will continue to operate as normal, he said.
Thailand's Department of Civil Aviation (DCA) aims to complete on April 10 the re-evaluation of six airlines' licences and will send the finding to Japan's Civil Aviation Agency, Voradech Hanprasert, Deputy Permanent Secretary at the Thai Transport Ministry, said.
The six included Thai Airways (TII), Thai AirAsiaX (THX), NokScoot (NSC), Jet Asia Airways (JSZ), Asia Atlantic Airlines (AAQ) and Asian Air (?).
NokScoot (NSC), a joint venture (JV) between Nok Air (NKA) and (SCT), a Singapore Airlines (SIA) subsidiary, is expected to be most affected, given it needs to delay launch of new scheduled flights to Japan, Voradech said.
The safety concern was raised in late March during an audit of the (DCA) by the Montreal-based International Civil Aviation Organization (ICAO), which gave (DCA) a 90-day grace period to comply with international standards.
Voradech said the (DCA) has to improve its operations to meet a deadline in June, while Thai authorities will speed up the restructuring of the (DCA) and the amendment of regulations by October.
Over the next two months, the (DCA) will also re-evaluate all 41 licences it granted to airlines, starting with 28 carriers flying international routes, to ensure that its operations are in line with (ICAO) standards, Prajin, the Thai Transport Minister, said.
Thailand has struggled for almost a decade to comply with (ICAO) standards, the Minister has said.
News Item A-2: Thai Airways International (TII) has recently phased out its Airbus A340-642 fleet from service as part of its fleet renewal plan to enhance both its profitability and reputation.
The type operated its last flights on the Frankfurt - Bangkok, Zurich - Bangkok, Singapore - Bangkok, and Zurich - Singapore routes on March 28.
(TII), the Star (SAL) Alliance carrier had six A340-642s in its fleet. It took delivery of its first of the type (HS-TNA) on June 29, 2005, and its last on October 29, 2008 (HS-TNF).
Currently, five of the six A340-642s were moved from Bangkok Suvarnabhumi International Airport to Utapao International Airport on April 1. (TII) said these airplanes will be sold off accordingly.
May 2015: News Item A-1: Thai Airways International (TII) reported a first-quarter net profit of +THB4.54 billion/+$139 million, reversing a loss of -THB2.63 billion reported in the year-ago period.
Total revenue for the quarter was up +20.3% to THB61.3 billion, of which 79% was attributable to transportation activities (Thai Airways (TII) and its low-cost carrier (LCC) subsidiary, Thai Smile (TSM)). Revenue from transportation activities was up +2.9% to THB48.4 billion year-over-year.
Total expenses were up +10.7% to THB59 billion, but actually declined -11.6% if impairment and financial costs are excluded to THB45.8 billion.
In its analysis, Thai Airways (TII) said: “During the first quarter of 2015, (TII) launched its transformation plan with the first stage designed to stop the bleeding by discontinuing these routes: Bangkok - Johannesburg since mid-January, Bangkok - Moscow, and Phuket - Seoul in summer 2015. Adjustment in airplane type was made to suit market demand and a fleet renewal program was implemented with the decommissioning of 11 airplanes. (TII) sold two retired airplanes, while taking delivery of two new airplanes, resulting in a total of 93 airplanes in the fleet as of March 31, 2015. The average age of fleet was down from 8.3 years to 7.6 years.”
Recovery of the Thai tourism sector, combined with economic growth in several countries, saw passenger numbers increase +17%, reaching 5.62 million in the first quarter year-over-year. (ASK)s increased +4.5% to 21.9 billion and (RPK)s were up +12.3% to 16.5 billion. Load factor was up +5.3% points to 75.4% LF, but passenger yield declined -5.6%.
(TII) said that business in the second quarter is expected to grow steadily in line with the global economic recovery and continued low oil prices. Thai Airways (TII) acknowledged that “for the aviation industry of Thailand, there are issues of the safety concerns, which the Thai Department of Civil Aviation will be closely audited by (ICAO) following the Universal Safety Oversight Audit Program (USOAP). In case any problem occurs, it could seriously affect the aviation industry of Thailand, especially on routes to Japan, where there is extra travel demand during the long weekend in the second quarter to reach.”
(TII) said it plans “to respond to the situation in a pro-active manner, including the preparation of both equipment and personnel to support safety assessments from all countries it operates into. (TII) conforms to the (IATA)’s Operating Safety Audit (IOSA) accreditation that is an internationally recognized standard. (TII) is confident that our organization preparation will be able to handle situations that may arise in the future. (TII) is able to mitigate and control the risks associated with this situation as well as taking further actions to minimize the effect to our aviation business.”
News Item A-2: Guernsey-based lessor, DP Aircraft I has confirmed plans to acquire a pair of Boeing 787-8s that are currently owned by AerCap (DEA) and leased to Thai Airways (TII).
DP Aircraft I was created in 2013 to invest, lease and trade airplanes. It has a portfolio of two Rolls-Royce (RRC) powered 787s, carrying serial numbers (35304 and 35305), which are on long-term lease with Norwegian (NWG).
Last December, DP Aircraft I outlined plans to double its fleet by acquiring the two airplanes. At the time, it said the airplanes would be leased to a third-party national airline on a 12-year term.
The acquisition was approved by shareholders during an extraordinary general meeting on May 18. The two Boeing 787s, (serial numbers 36110 and 35320), were delivered to Thai Airways (TII) in October and December 2014. The purchase will be funded by a $106.8 million share placement and a $156.4 million loan.
1 777-307ER (42114, HS-TKY), delivery (Its 25th 777 direct from Boeing (TBC) - see photo "TII-777-307ER -2015-06.jpg.
July 2015: News Item A-1: "Thai Airlines Face Flying Ban to USA" in
"Bangkok Post" July 18, 2015.
The Minister said the government is also taking action to ease the so-called significant safety concerns raised by (ICAO). The shortcomings identified by the (ICAO) during an audit of the (DCA) earlier this year centered on (DCA)'s failures to meet aviation safety standards in regards to regulating aviation businesses and granting air operator certificates (AOC)s.
There was also a lack of sufficient oversight to ensure the effective implementation of (ICAO) standards, the organization said after its audit.
Regarding (DCA) staff shortages, ACM Prajin said the department was recruiting new staff to carry out inspections and certification of airlines. They need time to receive training before they can start work, he added.
ACM Prajin also said that work on two manuals, the Flight Operating Inspector Manual and Air Operating Certification (AOC) Requirement, was now complete. Staff will receive training on the safety manuals to carry out inspections and certifications of 28 new airlines that provide international flight services.
The Minister said Thai Airways (TII) has already come up with a solution if the outcome of the (FAA)'s final audit is unfavorable to Thailand.
(TII) plans to transfer its customers to airlines who are fellow members of the Star (SAL) Alliance.
As for a plan to carry out certification of new airlines, ACM Prajin said the plan had been postponed several times due to staff shortages, and a lack of safety manuals. But now the manuals were ready, and staff were being trained, he said.
However a suitable date for the certification had not yet been fixed as the (DCA) had to wait for the (ICAO) experts to visit, he said.
"We don't know when the (ICAO) staff are ready, so we cannot fix the date, but the certification may not be completed by this year. It may have to begin next year," ACM Prajin said.
Later (July 22, 2015) the (FAA) gave Thai aviation authorities until mid-October to take “corrective measures” over critical omissions in its commercial aviation safety standards. If these measures are not taken in time, Thai carriers could face a flight ban to the USA.
Thai Transport Minister, Prajin Juntong said that if further inspections do not meet the (FAA) requirements, Thailand’s aviation sector could be downgraded to a Category 2. He said this could “affect the industry’s flights into the USA.”
The (FAA) undertook a week-long inspection of Thai aviation oversight procedures following the application of an (ICAO) “red flag” status to Thai carriers in June. The (ICAO) red flag was applied over issues with standard procedures and safety adherence.
The (FAA) examination looked at inspection procedures at key Thai carriers including Thai Airways (TII) and Bangkok Airways (PGB). The initial report detailed three key areas of concern: lack of qualified inspection staff; some staff being “inappropriately assigned to aircraft types,” and lack of compliance with some standardized operations checklists (for both aircraft and ground operations).
The Thai government has already committed to shake up its safety and oversight procedures through the Thai Department of Civil Aviation (DCA) governing body. It has replaced previous (DCA) (CEO), Somchai Phiphutthawat with the (DCA)’s Inspector General, Parichart Khotcharat, and has also promised to introduce new oversight bodies to promote safety.
The (FAA) expects to release its full report by late August, after which Thai authorities will have 65 days to address any safety and compliance issues.
News Item A-2: "Thai Airways (TII) Adds 2nd London Nonstop Schedule"
by (ATW) Jeremy Torr, July 20, 2015.
Thai Airways (TII) will double its London - Bangkok capacity later this year, with a second airplane in addition to its newly inaugurated Airbus A380 service. It will also operate a Boeing 777-300ER airplane flying nonstop to London's Heathrow (LHR) from Bangkok's Suvarnabhumi International on a daily basis.
(TII) stopped flying its night-flight service on July 1, when it introduced a single Airbus A380 schedule as a replacement for its twice-daily schedule using aging Boeing 747s. The new A380 service had seen several delays prior to an inauguration, that was originally planned for late 2013.
(TII) will add to the A380 service with the 777, which will offer 348 seats in two classes, compared to the A380's 507 seats in three classes. “We are immensely proud of our service and doubly so now that we are the only airline offering A380 nonstop travel between London and Bangkok,” Thai General Manager, Wit Kitchathorn said.
News Item A-3: Thailand’s Airports Authority (AOT) has said it will go ahead with airport upgrades, despite the country’s red flag status issued by (ICAO) in June, following an unsatisfactory response to a safety audit earlier this year.
The airports include both major Bangkok sites (Suvarnabhumi and Don Mueang) as well as Phuket, Hat Yai, Chiang Rai and Chiang Mai. (AOT) said all the upgrades will cost in the region of an originally projected THB60 billion/$1.75 billion.
Main airport Suvarnabhumi will see upgrades to its mid-field terminal, passenger terminal and overall infrastructure, that will boost capacity from 45 million passengers a year to 60 million. To date in 2015, the combined eight airports processed around 46.3 million passengers.
Don Mueang (primarily used by low-cost carriers (LCC)s) will see renovations to Terminal 2 and Concourse 5 completed by August this year, which will expand capacity from the present 18.5 million to 30 million passengers per year.
Tourist destination Phuket will also see an upgrade with a new international terminal and a capacity boost from 6.5 million to 12.5 million passengers a year, due for official opening early 2016.
However, Thai airlines are feeling the heat of the recent red flag listing as the Thai Department of Civil Aviation (DCA) has imposed tighter scrutiny on many operators.
Chiang Mai-based domestic carrier Kan Air has been banned from eight of its schedules following irregularities in ticket sales.
The carrier, which operates ATR72-600s, has been ordered to stop flying to Chiang Rai, Udon Thani, Khon Kaen, Don Mueang, Mae Sot, Utapao and Nakhon Ratchasima by the (DCA).
News Item A-4: The Indonesian Ministry of Transport has confirmed it has applied restrictions to Thai operators flying into the country following safety concerns by (ICAO) and the (FAA). The restrictions include banning any changes to existing flight schedules or aircraft, with an across-the-board ban on any new services from Thai operators.
Indonesian aviation authorities have also said they will check all carrier operation certifications for compliance with international requirements and standards.
Thailand was originally notified of the new restrictions in late May, but due to slow inter-governmental communications, the Thai Transport Department did not receive notification of the ban until mid-June, Thai Transport Minister Prajin Juntong said.
“The Thai Transport Ministry received the notification from its Indonesian counterpart on June 16,” Juntong said, although the restrictions were initially applied by Indonesia on May 29.
Juntong added the Indonesian authorities have also promised to conduct “frequent checks” on all Thai-registered airlines flying into the country.
This latest restriction adds to the tally of countries tightening regulatory requirements on Thai carriers. To date, China, South Korea, Taiwan, Japan and Singapore have all required extra oversight to be applied to Thai-registered aircraft flying into their airspace and destinations.
The latest restrictions have come on the heels of an (ICAO) red flag status applied in June, and a recent (FAA) preliminary report that concluded safety oversight was in need of urgent remedial action across several Thai carriers. The (FAA) is due to release its full report on Thai safety compliance in September.
However, the United Arab Emirates (UAE) (which has not joined in the Thailand restrictions) has signed a major deal promoting Thai tourism, despite the bans. (UAE) flag carrier, Etihad Airways (EHD) has agreed to collaborate with the Tourism Authority of Thailand (TAT) on a $1.25 million venture to boost Thai tourism from several European and Middle East countries, as well as South Africa.
“This partnership with (EHD) will be a great benefit to both parties (to Thailand in terms of increased visitor numbers and to Etihad Airways (EHD) in terms of promoting its international network)” (TAT) (CEO), Juthaporn Rerngronasa said. He has targeted 28 million international visitors in 2015, but the plan could be derailed, if more international flight restrictions are applied.
News Item A-5: Thai Airways (TII) will implement Satair Group’s Airbus Managed Inventory (AMI) service, which optimizes inventory management by ensuring that high-usage and non-repairable parts are automatically replenished at (TII)’s facilities. This happens while guaranteeing part availability and decreasing inventory stock levels, leading to improved base maintenance services for (TII).
August 2015: News Item A-1: Thai Airways (TII) has reported a second-quarter loss of -THB12.8 billion/-$378 million, widened from a loss of -THB7.7 billion in the year-ago quarter.
Weakness in cargo demand was a major factor. (TII)’s cargo volume was down almost -23% year-on-year in the quarter, dwarfing the -9.3% decline in capacity. Cargo yield dropped -6.6% and load factor fell -10 points to 58.3% LF.
Airlines in the region have been largely pessimistic regarding the cargo outlook. Thai Airways (TII) said Asia-Pacific airlines face a “big challenge from the [latest] recession of air cargo business.”
Stronger passenger demand offset the cargo decline, resulting in (TII) reducing its operating loss -46% to -THB3.3 billion. However, significant special items caused the net loss to expand.
Foreign exchange losses totaled -THB3.7 billion and employee termination benefits also cost THB3.7 billion. (TII) has cut -1,400 positions as part of its fleet and network streamlining.
The passenger sector continued to benefit from a recovery in tourism numbers. Passenger traffic was up +11.2% in the second quarter, outstripping a +2% capacity increase. While load factor rose +5.8 points to 69.2% LF, yield dropped -11.4%. Overall operating costs fell -8.8%, largely driven by a -20% decline in fuel spending.
News Item A-2: Thai Airways (TII) will resume its 2x-daily, London Heathrow (LHR) - Bangkok service on October 25. It suspended its second daily, (LHR) - Bangkok night service, when it introduced an Airbus A380 flight at the beginning of the month, but it will add back a Boeing 777-300ER service in addition to the A380.
News Item A-3: Thai Airways (TII) will abandon its 4x-weekly Boeing 777-200 Bangkok - Los Angeles service from October. (TII) will also drop its 747-400 Rome Fiumicino service, but will increase other European route coverage to compensate.
News Item A-4: Thai Airways International (TII) will cut its workforce by -1,400 by the end of the year. Despite pledging earlier this year that job cuts would be a last resort, the 25,000-strong workforce could be cut to as low as 20,000, (TII) President, Charumporn Jotikasthira said.
The cuts, described by (TII) as “part of a cost-reduction exercise . . . carried out only after other measures to control and cut costs have failed,” will see (TII) reduce overall passenger seat numbers -15% by the end of December.
The announcement comes on the heels of the decision to cut (TII)'s scheduled services to both Rome and Los Angeles (LAX) by October as part of route rationalization, Charumporn said. The (LAX) cuts will also affect (TII)'s Korean services because the 4x-weekly Boeing 777-200 (LAX) flights make a stop in Seoul.
The staff reductions come as part of a drive to cut overall operating costs -20% within two years, which will also likely see (TII) sell or cut leases on some of its older wide bodies, including its ageing Boeing 747s.
(TII) has previously said it plans to sell off more than 20 airplanes this year, and could also look at divesting non-core assets such as overseas property, offices and ownership shares in hotels. “It's normal that we have to cut costs and adjust flights to suit our changing situation,” Charumporn said.
(TII) said it is targeting some -THB9 billion/-$260 million savings in operating costs through the schedule and staff cuts, and plans to turnaround from a 2014 -$515 million loss to a profit within two years.
(TII) is also under the threat of Thailand facing regulatory blacklisting, brought on by the recent inspection reports from both the (ICAO) and the (FAA). Both organizations flagged Thai aviation operational and safety standards as needing better oversight.
September 2015: Thai Airways (TII) discontinues 4x-weekly, Bangkok - Los Angeles service from October.
October 2015: Thai Airways International (TII) plans to ramp up services to key European destinations, and will cut back under-performing services to Italy and the USA.
(TII), the Thai flag carrier will add an extra daily flight to London Heathrow (LHR) from Bangkok’s Suvarnabhumi International from October 25, using a two-class Boeing 777-300ER to complement (TII)’s existing daily Airbus A380 service. This will bring the flight schedule to 14x-weekly offering to the UK capital.
(tii) will also increase the frequency of its Bangkok - Frankfurt service by 6x-weekly, again using new 777-300ERs to add to an existing daily, Airbus A380 service.
Thai Airways (TII)’s existing 2x-daily service between Bangkok and Delhi, currently using both Airbus A330 and Boeing 777 airplanes, will add a new late-night Boeing 787-8 service to bring a total of three flights per day between the two cities.
However, (TII) is to stop all USA-destination flights from the same date, with the withdrawal from its 4x-weekly 777-200 Suvarnabhumi - Los Angeles route. It will also axe its 4x-weekly, Bangkok - Rome service from the same date.
(TII) says the changes will help it toward $250 million-plus savings in operating costs that are aimed at bringing (TII) back into profit by 2017. (TII) pledged earlier this year to cut overall passenger seat numbers by -15% by the end of December 2015.
November 2015: Thai Airways International (TII) posted a third-quarter net loss of -THB9.9 billion/-$246 million, reversed from a third-quarter +$36.2 million net profit in the year-ago period. (TII) said the results were due to foreign exchange losses caused by a weak currency and a drop in overall cargo volumes.
Third-quarter revenue fell -4.4% to $1.23 billion, leading to an overall nine-month net loss of -$514 million despite a traffic rise by +8.8% to 5.15 million passengers in the July - September quarter.
Load factor averaged 73.1% LF, up +3.8 points on the year-ago period, but increased competition saw the trimming of several routes in an effort to reduce costs.
(TII) noted the majority of losses were from a $350 million write-down and impairment on its aircraft fleet, as well as $103 million for termination payouts as a result of staff redundancies.
(TII) will reduce executive salaries -10% as part of a plan to trim operating costs by -20 billion baht/-S$793 million, Thai (TII) (CEO), Charumporn Jotikasthira said.
A320-232 (6795, HS-TXU "Chachoengsao"), ex-(F-WWBF), leased from Thai Airways (TII) to Thai Smile (TSM).
December 2015: News Item A-1: The (FAA) has downgraded Thailand’s aviation safety rating, a move widely expected, following audits of the Thai regulator by the (FAA) and (ICAO).
The downgrade means Thailand is rated as Category 2 instead of Category 1 under the (FAA)’s International Aviation Safety Assessment program. Such a rating reflects oversight deficiencies with national aviation authorities rather than problems with specific airlines. However, airlines are most affected as they are not allowed to introduce new service to the USA.
A team from the (FAA) visited Thailand to conduct its audit in the week of July 13, and found oversight concerns. The Thai government was given a set period of time to attempt to address these issues.
Thai Airways (TII) was the only Thailand-based carrier serving the USA, with a route to Los Angeles, but it canceled that flight in October. However, the (FAA) was well into its audit when the route cut was announced.
Safety issues were first identified by (ICAO) in March, after a scheduled audit of Thailand’s Department of Civil Aviation (DCA). (ICAO) identified what it categorized as significant safety concerns (SSCs) mainly relating to how the state certifies its airlines. These concerns range from staffing levels to manuals and procedures.
After the (DCA) was informed, it was given 90 days to resolve the (SSC)s. While it took some measures that would allow it to start recertifying all of its airlines, it did not do enough to meet the deadline. So in June, Thailand became the 13th nation to be “red-flagged” on (ICAO)’s aviation safety list.
The red flag status does not in itself impose any restrictions, but it serves as a guide to national aviation authorities. Japan was among the first to respond, blocking most charter flights and preventing Thai carriers from starting new services. Others, including Korea, took similar steps.
January 2016: News Item A-1: "Thai Airways (TII) to Sell Assets, Defer Aircraft Deliveries" by (ATW) Jeremy Torr, January 29, 2016.
Thai flag carrier, Thai Airways (TII) will pursue a far-reaching cost-cutting program from (1Q) 2016 to realize up to -THB1billion/-$28 million in savings.
Thai management said it would seek to defer deliveries of up to some 14 aircraft on order from Airbus (EDS) and Boeing (TBC), including 4 purchased and 8 leased Airbus A350 XWBs, and the remainder of its 8-strong 787 order.
The majority of the new aircraft deliveries are scheduled for mid-2016 onward, and (TII) (CEO), Charamporn Jotikasthira said (TII)r would enter into negotiations with manufacturers to defer those handover dates.
The move came following (TII)’s inclusion on a list of operations being audited by the Thai government’s State Enterprises Policy Commission (SEPC) as part of a Thai government push to improve the performance of a number of quasi-government companies.
(TII) said it would also drastically cut its real estate holdings worldwide, selling off company offices and staff housing assets it owns in Thailand, UK, Sweden, Australia, Italy, Spain, Malaysia, and Singapore. It said this would not only raise cash, but would also cut down on ongoing property maintenance expenses.
Charamporn added that (TII) would concentrate on more effective operations for its slimmed-down fleet to avoid ongoing expense, and to avoid “piling up more debt.”
It is not known if the airplane deferral plans will affect (TII)’s order for Rolls-Royce (RRC) (Trent) engines, placed in 2011 in anticipation of the new aircraft deliveries. Despite cutting some legacy long-haul schedules such as its South Africa and Los Angeles routes, (TII) posted a (3Q) 2015 net loss of -THB9.9 billion in 2015.
News Item A-2: Spafax was selected by THAI Airways (TII) to provide in-flight entertainment content and management services, including movies, television, regional programming, and music.
February 2016: News Item A-1: "(IATA) Says Bangkok Airport a Safety Risk, Needs Urgent Expansion: Report" by Khettiya Jittapong & Manunphattr Dhanananphorn, Reuters, February 19, 2016.
The International Air Transport Association (IATA) has warned that Bangkok's main Suvarnabhumi Airport is a safety risk, with "serious" overcrowding soon to become a critical issue, and urgent expansion needed, the "Nation" daily reported on February 19.
Thailand is under pressure to improve its aviation standards after the USA Federal Aviation Administration (FAA) downgraded the country's safety ratings in December last year. "There are also safety concerns on the airport's tarmac, taxiways and apron area because of soft spots," (IATA) Director General & (CEO), Tony Tyler said.
"Aircraft get stuck in the soft surface due to substandard materials," he told the newspaper in an interview in Bangkok, after returning from the Singapore Airshow.
Thailand's aviation industry is under scrutiny after the United Nation's International Civil Aviation Authority (ICAO) downgraded the country in June 2015, giving it a red flag for missing a deadline to tackle safety concerns.
This week, the Thai Civil Aviation Authority said a review by (ICAO) was likely to be delayed until early 2017, because it needed more time to improve the qualification of Thai auditors.
Tyler said the airport, which handles 52 million passengers each year, had a significant regional and global role, but needed urgent expansion of its terminal capacity, the "Nation" said. "It was designed to handle 45 million passengers annually, but it exceeds that today and traffic is still growing at an annual +10% rate," he said. "Overcrowding is a serious issue that will become critical quickly," Tyler said.
(IATA) represents almost 260 airlines, accounting for 83% of global air traffic.
Thai airport operator Airports of Thailand said it was aware of the problems flagged by (IATA) and has readied several measures to improve runways using concrete and expand capacity, which are awaiting government approval. "We have prepared short- to medium- and long-term plans to solve the problems," Sirote Duangratana, General Manager of Suvarnabhumi Airport, told "Reuters."
News Item A-2: Thai Airways (TII)’s Maintenace Repair & Overhaul (MRO) division has begun heavy maintenance checks on two Boeing 777Fs operated by USA cargo carrier Southern Air (SOF).
April 2016: "(UK CAA) Offshoot to Help Thailand Win Back Safety Oversight Rating" by (ATW) Anne Paylor, April 20, 2016.
The Civil Aviation Authority of Thailand (CAAT) has appointed (CAA) International (CAAi), the advisory arm of the UK Civil Aviation Authority (UK CAA), to help strengthen the (CAAT)’s aviation safety oversight in compliance with (ICAO).
In June 2015, (ICAO) “red flagged” Thailand, raising the country’s aviation safety oversight rating to a full Significant Safety Concern (SSC) rating.
The (CAAi) project, which is expected to begin in May this year, will involve a team of around 10 experts from the (UK CAA) working with (CAAT) to recertify Thai-registered air operator’s certificates (AOC) and address (ICAO)’s (SSC).
(CAAi) will also provide on-the-job flight operations training to (CAAT) Inspectors, to help increase their core inspectorate competencies in accordance with international standards.
It will also help (CAAT) complete an (ICAO) Coordinated Validation Mission (ICVM) covering all of (ICAO)’s eight critical elements of a safety oversight system ahead of Thailand’s impending (ICVM) safety audit. (ICVM)s help to validate progress made by states in resolving safety deficiencies identified during (ICAO)’s Universal Safety Oversight Audit Program (USOAP) audits.
(CAAi) Managing Director, Maria Rueda said: “With almost 600,000 passengers flying to Thailand from the UK alone in 2015, we are fully committed to assisting (CAAT) raise its level of effective implementation, and meet the international safety standards set by (ICAO). Working together, we are confident we can help lift the (SSC) and strengthen Thailand’s aviation safety oversight.”
July 2016: The 1st Airbus A350 XWB for Thai Airways International (TII) has completed its maiden flight over the skies of SW France.
SEE PHOTO - "TII-A350 XWB 1st Flight - 2016-07.jpg."
August 2016: A350-941 (44, HS-THB), ex-(F-WZGO), (CIT) Aerospace (TCI) leased. A340-541 (698, HS-TLC), re-painted in Royal Thai Air Force colors.
September 2016: News Item A-1: Thai Airways International (TII), which took delivery of its 1st Airbus A350-941 (44, HS-THB) ex-(F-WZGO), August 30, will delay launching the 1st scheduled service to Melbourne Airport because of additional inspections and requirements from Australian authorities.
(TII) President Charamporn Jotikasthira said that the A350-XWB approval process “is not able to be completed in time for (TII) to operate the maiden flight by September 16. Previously in 2014, the approval of (TII)’s 1st Boeing 787-8 was much shorter. (TII), therefore, needs to delay operating the A350-XWB to Melbourne until the authorities have completed their approval process.”
It is expected the approval will be completed in time for the winter schedule, which begins at the end of October. “In the meantime, (TII) will operate the A350 between Bangkok - Chiang Mai and Bangkok - Phuket, which will give passengers in Thailand more opportunities to experience the elegance of the (TII) A350,” Jotikasthira said.
(TII), the Thailand flag carrier and Star (SAL) Alliance member continues to operate its double daily Bangkok - Melbourne service.
Thai Airways International (TII) is taking 12 A350s, 4 of which have been purchased directly from Airbus (EDS) and another 8 on lease.
October 2016: News Item A-1: (EVA) Air and Thai Airways International (TII) announced a new code share partnership on October 17. The 1st code share flights will begin October 30. Under the agreement, the carriers will use both airlines’ flight numbers on North America service and onward connections between Taipei and Bangkok.
The code share will extend to (EVA) Air’s North American routes to Houston, Los Angeles, New York, San Francisco, Seattle, Toronto, Vancouver and Chicago (beginning November 3).
(EVA) operates 27x-weekly Taipei - Bangkok service. Thai Airways (TII) flies 7x-weekly service on the same route. The code share agreement will apply to all flights on the route served by each airline.
“This code share agreement enables (EVA) and (TII) to combine resources to attract more North America passengers and grow bookings in Southeast Asia,” (EVA) Air said. “The code share strengthens North America and SE Asia markets for both carriers.”
News Item A-2: Thai Airways International (TII) took delivery of its 2nd A350-900 (050) on lease from (CIT) Aerospace (TCI).
December 2016: "International Airlines Increase Capacity, Frequencies to Russia" by (ATW) Polina Montag-Girme firstname.lastname@example.org, December 2016, 2016.
Thai Airways (TII) has relaunched Bangkok Suvarnabhumi - Moscow Domodedovo Boeing 777-200/300 service on December 15. It will operate 4x-weekly flights on the route. (TII), the Thailand flag carrier ceased Moscow operations in March 2015 because of weak demand. However, in the 1st 8 months of 2016, traffic from Russia to Thailand grew +20%, Thai Airways (TII) VP Bryan Banston said. From 2005 when (TII) started to fly to Domodedovo, it has performed 3,400 flights from this airport to Bangkok; the highest frequency, 5x-weekly, was reached in 2014. This year, passenger traffic exceeded >100,000, Domodedovo International Airport said.
Singapore Airlines (SIA) is set to increase the number of Singapore - Moscow Domodedovo frequencies from 4x- to 5x-weekly from May 30, 2017, simultaneously adding 5th freedom rights on the Moscow Domodedovo - Stockholm portion of the flight from Singapore. (SIA) launched Airbus A350-900 flights, which replaced the Boeing 777, on Singapore - Moscow service on December 15. (SIA) is the 1st carrier flying the A350-900 to Russia.
Lufthansa Group subsidiary Austrian Airlines (AUL) uses the Boeing 777 on Vienna - Moscow Domodedovo service, replacing A320 family and 737 aircraft. (AUL) performs 11x-weekly flights between the cities. (AUL) has flown to Domodedovo for nearly 10 years, carrying 1.96 million passengers, Domodedovo said. At the beginning of 2015, Austrian FlyNiki (NKI) ceased Vienna - Moscow flights and Transaero Airlines (TXD) stopped flying on the route because of bankruptcy.
In October, Dubai-based Emirates Airline (EAD) increased Dubai - Moscow Domodedovo capacity, reintroducing the A380 on 1 out of 2 daily services. According to Domodedovo, Dubai traffic increased +20% in November year-over-year.
(KLM) Royal Dutch Airlines plans to double Amsterdam - Saint Petersburg Boeing 737 service frequency from 1 to 2 daily flights from February 18, 2017. This will increase the number of long-haul flights connections at Schiphol Airport, Saint Petersburg Pulkovo International Airport said.
January 2017: 777-2D7 (27730, HS-TJE), sold to GA Telesis for parting out (re-registered N175GT).
March 2017: News Item A-1: Thai Airways International (TII) posted a net profit of +THB46.8 million/+$1.3 million for 2016, a turnaround from (TII)’s -THB13 billion net loss in 2015.
(TII) began a self-described transformation in early 2015 to “stop [the] bleeding” and in 2016 instituted the 2nd phase of its transformation plan concentrating on “proactive revenue boost, effective cost reduction, capability enhancement and service excellence provision,” according to (TII)’s 2016 operational analysis.
“[In 2016], the company implemented transformation plan[s] such as [improving] network management, revenue management, upgrading of business (C) class meals and services, and improving work process[es] for better efficiency.”
Thai (TII)’s full-year revenue in 2016 was down -4.3% to THB180.6 billion, but (TII) reduced operational expenses -7.2% year-over-year (YOY). The resulting operating profit (+THB4.1 billion) reversed the company’s -THB1.3 billion operating loss in 2015 and was (TII)’s highest operating profit in 4 years.
(TII) carried 22.3 million passengers in 2016, up +4.8% (YOY). Traffic increased +2.5% to 60.9 billion (RPK)s and capacity was up +1.9% (YOY) to 85 billion AKS, producing a 73.4% LF passenger load factor, up +0.5 point (YOY). Yield fell -4.5% (YOY) to THB2.35.
As of December 31, 2016, (TII)’s fleet comprised 96 aircraft, 28 of which are owned by (TII), 34 are under finance leases and the remaining 34 are under operating leases. (TII) said it is holding an additional 25 aircraft for eventual sales, which the company values at THB10.7 billion.
Additionally, (TII) said it has a payment obligation to purchase 4 Airbus A350-900s; deliveries are expected to begin this year and continue into 2018.
News Item A-2: Airbus (EDS) and Thai Airways International (TII) signed a memorandum of understanding (MOU) March 8 to jointly evaluate developing a new maintenance and overhaul (MRO) campus at U-Tapao International Airport in Rayong, Thailand. The (MOU) was signed by Airbus Commercial Aircraft President Fabrice Brégier and Thai Airways International Acting President Ms Usanee Sangsingkeo.
According to Airbus (EDS), the new (MRO) facility will offer line and heavy maintenance services and will utilize digital technology analysis of aircraft maintenance data, in addition to (UAV) inspection of aircraft airframes. Specialized repair shops, including a repair center for composite structures, are envisioned for the campus, as well as a maintenance training center for (TII) and other regional technical personnel.
“With the fleet in the region set to almost triple to >15,000 aircraft over the next 20 years, this project represents a sound opportunity for Thailand to develop its footprint in the aerospace sector,” Brégier said. “[It] will help to meet strong demand for maintenance services in the fast-growing Asia-Pacific region.” “This facility will be a showcase maintenance hub for the region and will offer its services to airlines across the region and beyond,” Sangsingkeo added.
In June 2016, the Thai government approved an Eastern Economic Corridor development project for the provinces along the NE Gulf of Thailand — Chonburi, Rayong and Chachoengsao. Among other investments in the area aimed at port, rail and highway infrastructure improvements, the Thai government intends to develop U-Tapao International Airport into a new aerospace hub for the region.
May 2017: Thai Airways (TII)’s air operator’s certificate (AOC) has been recertified after a 2015 (ICAO) audit of Thailand found significant concerns with the country’s safety oversight.
Following the 2015 audit, Thailand brought UK CAA consultancy unit (CAA) International (CAAi) on board in 2016 to help strengthen the local (CAA)’s safety oversight, (ICAO) compliance and to recertify its airlines.
“The Civil Aviation Authority of Thailand (CAAT) has announced that flag carrier Thai Airways International (TII) has been successfully recertified to the international safety standards of (ICAO). Thai Airways is the 3rd of Thailand’s international airlines to receive its air operator’s certificate recertification as part of (CAAT)’s recertification program,” (CAAi) said May 8.
(CAAT) Director General Chula Sukmanop said the recertification should have a “significant impact” for both Thai Airways and anyone flying to the country with Thai carriers.
Bangkok Airways (PGB) was the 1st airline to be recertified in February. At that time, (CAAT) and (CAAi) said they were hoping to have 9 airlines recertified by June. The 9 include the 6 largest airlines in Thailand, carrying a combined total of >100 million passengers per year.
Thai Airways (TII) is Thailand’s largest airline, serving 80 destinations in 37 countries.
(ICAO) is expected to audit Thailand again later this year.
July 2017: Thai Airways International (TII) is grounding some of its Boeing 787-8s because of delays in fixing engine problems also affecting other operators of Rolls-Royce (RRC) (Trent 1000) engines. (TII), the Thai flag carrier has not specified how long the 787-9s will be parked, but said the engine spare parts issues will be “alleviated” in August. It expects things to “return to normal” in September. Local media has reported that 4 of (TII)’s 6 787s have been grounded.
August 2017: A weaker 2nd-quarter performance has dealt a setback to Thai Airways (TII)’s financial turnaround efforts, dragging (TII) into the red for the 1sSt half of the year.
(TII) reported a net loss of -THB5.2 billion/-$156.6 million for the 3 months through June 30, which was +79% higher than the THB2.9 billion loss in the same period a year earlier. This was enough to outweigh its 1st-quarter profit, and tip the airline into a -THB2 billion loss for the 1st 6 months of the year. This is a reversal from a +THB3.1 billion profit in 2016.
(TII) is partway through a multi-year turnaround plan. In 2016, (TII) managed to return to the black with a slim +THB47 million profit, versus a -THB13 billion loss in 2015. The latest results will make it more difficult for (TII) to build on last year’s improvement.
Despite the higher net loss, (TII) managed to reduce its (2Q) operating loss by -13.5% to THB1.5 billion. However, it was also faced with more special items, such as losses from foreign exchange shifts and the dilution of its ownership share in Nok Air (NKA).
Other factors contributing to the (2Q) net loss were a +20% year-over-year increase in fuel prices, and a -10.9% drop in passenger yield. (TII) achieved good demand in the quarter, with traffic up +21.9% on a +7.1% capacity increase. 2nd-quarter revenue rose +9.6%. Load factor was up +9.5 points to 78.5% LF, which (TII) said was its highest in 10 years.
(TII) increased its fleet to 97 aircraft by June 30, thanks to the delivery of 2 Airbus A350s and no retirements. The total includes the 20 A320s operated by subsidiary Thai Smile (TSM). During the 2nd half of 2017, (TII) is scheduled to take delivery of 5 new aircraft (3 A350s and 2 Boeing 787-9s). It will also phase out 2 leased Airbus A330-300s during this period.
1 A350-900, (ALAFCO) leased delivered August 31.
November 2017: Thai Airways International (TII) VP Alliances & Commercial Strategy, Krittaphon Chantalitanon said (TII) is close to placing orders for up to 30 new airplanes as part of its fleet renewal plans. Krittaphon said that approximately 20 wide body and 10 narrow body airplanes would be ordered but that offers from manufacturers are still under consideration. Additionally, government approval is also required before any final order can be placed.
According to the ch-aviation fleets database, Thai's oldest wide body airplane subfleets are its 10 747-400s (average 18.7 years of age), its 6 777-200s (20.8 years) and 6 777-300s (18 years). (TII) itself currently only operates 2 737-400s for its 2x-daily service linking Bangkok's Suvarnabhumi airport with Koh Samui. Subsidiary, Thai Smile (TSM) operates 20 A320-200s.
January 2018: Thai Airways International (TII) Boeing 787-8 "Ongkharak" inaugural flight Bangkok to Chiang Mai.
February 2018: Thai Airways Posts 2017 Net Loss; Optimistic after (ICAO) Safety Upgrade" by Adrian Schofield, (ATW) Plus,
February 27, 2018.
Thai Airways (TII) predicts the removal of Thailand from (ICAO)’s red flag safety list will boost the country’s aviation industry this year, although airlines are still waiting for the USA (FAA) to follow with its own safety upgrade. (ICAO) upgraded Thailand’s safety rating in October, which will make overseas customers more comfortable booking with the country’s airlines and help encourage more tourism from markets such as Japan, South Korea and China, (TII) said.
March 2018: News Item A-1: Thai Airways (TII) predicts the removal of Thailand from (ICAO)’s red flag safety list will boost the country’s aviation industry this year, although airlines are still waiting for the USA (FAA) to follow with its own safety upgrade. (ICAO) upgraded Thailand’s safety rating in October, which will make overseas customers more comfortable booking with the country’s airlines and help encourage more tourism from markets such as Japan, South Korea and China.
News Item A-2: See video re- visiting Thailand:
In the Samphran district of Thailand sits one of the country’s most spectacular Buddhist temples. Wat Samphran is a towering pink masterpiece scaling in at 80 meters high (an homage to the number of years Buddha lived. Known for the hollow dragon’s head that encircles the temple, visitors are welcome to ascend the 17-story superstructure to touch the dragon’s beard, or climb inside the belly of the beast).
May 2018: Thai Airways (TII) named Sumeth Damrongchaitham, the head of a Thai government-owned investment agency, as (TII)’s next President & (CEO). Following a lengthy (CEO) recruitment process, (TII)’s board approved Damrongchaitham on May 19. Damrongchaitham has been Managing Director of the Dhanarak Asset Development Company, a government-owned agency responsible for constructing and administering a new government complex, and managing government assets. Past positions include (COO) for Thai media.
June 2018: News Item A-1: Visit Phuket, Thailand:
July 2018: "Reports: Thai Airways to Order 23 Aircraft This Year" by
Adrian Schofield (email@example.com), July 11, 2018.
Thai Airways (TII) will reportedly order 23 aircraft this year, in a move (TII) has signaled for several months.
The expected order total was revealed by the Thai Transport Minister, according to "Reuters." This aligns with previous comments by (TII) executives to (ATW)’s sister publication Aviation Daily that (TII) wanted to order up to 30 aircraft, comprising narrow body and wide body types. Any order will need to receive government approval.
(TII) said in October that for its wide body needs, it was considering the Boeing 787-9 and 777X, as well as the Airbus A350-900 and A350-1000 variants. A split wide body order was said to be an option. (TII) already operates A350s and 787s.
October 2018: "Thai Airways Delays Wide Body Retirements to Ease Capacity Issues" by Adrian Schofield (firstname.lastname@example.org), October 24, 2018.
Thai Airways (TII) is postponing retiring some of its oldest wide body airplanes to cover delays in its fleet acquisition plans and a capacity crunch caused by Boeing 787 groundings for unschedued engine maintenance. (TII) had planned to retire its remaining Boeing 747-400s over the next few years, VP Alliances & Commercial Strategy Krittaphon Chantalitanon said. However, it has extended the phaseout “for another year or so,” he said.
(TII) has 6 passenger 747-400s remaining in service after retiring 2 earlier this year. Of the remainder, 1 will be phased out in 2019, 1 in 2020, 2 in 2021 and 2 in 2022.
(TII) may also have to keep some older Boeing 777s in its fleet longer than planned. (TII) must either delay their retirement or phase them out, bringing in leased or used airplanes to provide short-term capacity, Chantalitanon said.
(TII) is 1 of the many airlines that must progressively ground its Rolls-Royce (RRC) (Trent 1000)-powered 787s for unscheduled engine maintenance. As of October 19, 4 of Thai’s 8 787s were grounded for engine work, Chantalitanon said. (TII) hopes the number of 787s grounded at once can be reduced, but it will still have some 787s out of action for the short term at least.
(TII) has not yet had to adjust its schedule or cut flights because of the 787 engine issues as other airlines have done. However, (TII) has operated a “very tight schedule” because of the groundings, and there have been many flight delays, Chantalitanon said.
Another reason for keeping the 747s and 777s longer is that no new aircraft deliveries are arriving. The last new delivery received was its 12th Airbus A350 earlier this year, and there are no more outstanding orders.
(TII) intends to place more orders, but this process has been delayed because of a government request for (TII) to conduct another review of its acquisition plan and growth strategy. This review is likely to be completed by the end of this year, said Chantalitanon. However, even if an order is placed soon, it would still be at least a few years before new airplanes arrive.
When the acquisition plan was initially submitted to the government, it included the purchase of 23 aircraft. The government has asked for this plan to be resubmitted with more details about whether the aircraft are for growth or replacement, and what its expansion plans include. The 23 aircraft in the submission were to be two-thirds wide bodies and one-third narrow bodies, Chantalitanon said. However, the total and mix may change slightly as a result of the review. No specific models have been selected yet, and if the plan is approved, an order would likely be placed in the 1st half of 2019, Chantalitanon said.
Thai cannot afford to postpone its fleet expansion plans for too much longer, Chantalitanon said. (TII)’s rivals are upgrading their fleets, and (TII) must do the same to remain competitive with its premium product. The lack of fleet growth also means (TII) is focused more on consolidating its existing markets than adding new routes.
While (TII) is not adding airplanes, it is taking steps to refresh its existing fleet. (TII) is progressively upgrading the cabins on its Airbus A330s (3 of 15 aircraft have been completed so far), he said. 5 more are scheduled to be finished next year. One of the main features of the upgrade will be the introduction of lie-flat seats in business class (C) on the A330s.
Click below for photos:
TII-747-400 - 2012-08
TII-747-400 HS-TGG Phuket 2018-08.jpg
TII-747-400 HS-TGP SYD 2018-08.jpg
TII-777 HS-TKO 2018-09.jpg
TII-777-3AER 1082-41522 HS-TKM 2017-04.jpg
TII-777-3D7ER - 2015-06.jpg
TII-787-8 - 2014-07
TII-787-9 HS-TWA 2018-07.jpg
TII-A350 XWB 1st Flight - 2016-07.jpg
TII-A350-900 HS-THH 2018-07.jpg
TII-A380 - 2012-06
TII-A380 - 2012-10
3 737-2P5 (JT8D) (1 GROUNDED, 2 LEASED TO (SHK) (FOR SALE).
6 737-4D7 (CFM56-3C1) (1899-24830, /90 HS-TDA "SONGKHLA;" 1922-24831, /90 HS-TDB "PHUKET;" 2318-26611, /92 HS-TDD "CHUMPHON;" 2330-26612, /92 HS-TDE "SURIN;" 2338-26613, /92 HS-TDF "SI SA KET;" 2481-26614, /93 HS-TDG "KALASIN;" 2962-28703, /97 HS-TDH "LOP BURI;" 2968-28704; /97 HS-TDJ "NAKHON CHAISI;" 2977-28701, /97 HS-TDK "SRI SURAT;" 2978-28702, /97 HS-TDL "SRIKARN") (25321 DESTROYED 2001-03). 24830; 24831 WET-LEASED TO (NKA) 2004-06. 26612 WET-LEASED TO (NKA) 2004-10. 26611; WET-LEASED TO (NKA) 2006-01. 28702; TO (JSC) 2009-06. 12C, 137Y.
1 737-4Z6 (CFM56-3) (2698-27906, HS-CMV), EX-(TAF), FOR CROWN PRINCE MAHA VAJIRALONGKORN OPERATIONS 2005-11. (VIP).
0 747-3D7 (CF6-80C2B1) (681-23721, /87 HS-TGD "SUCHADA;" 688-23722, /87 HS-TGE "CHUTAMAT"), 2 WFU & FOR SALE. 18F, 62C, 325Y.
9 747-4D7 (CF6-80C2B1F) (769-24458, /90 HS-TGH "CHAIPRAKAM;" 777-24459, /90 HS-TGJ " HARIPHUNCHAI;" 833-24993, /91 HS-TGK "ALONGKORN;" 890-25366, /91 HS-TGL "THEPARAT;" 945-27093, /92 HS-TGM "CHAO PHRAYA;" 950-26615, /92 HS-TGN "SIMONGKHON;" 1001-26609, /93 HS-TGO "BOWONRANGSI;" 1047-26610, /94 HS-TGP "THEPPRASIT;" 1071-27723, /95 HS-TGR "SIRIWATTHANA"), 18F, 62C, 325Y.
9 747-4D7 (CF6-80C2B1F) (1097-26616, /96 HS-TGT "WATTHANOTHAI;" 1111-27724, /97 HS-TGW "VISUTHAKASATRIYA;" 1134-27725, /97 HS-TGX* "SIRISOBHAYKA;" 1164-28705, /98 HS-TGY "DARARASMI;" 1214-28706, /99 HS-TGZ "PHIMARA;" 1273-32369, /01 HS-TGA "SRISURIYOTHAI;" 1278-32370, /01 HS-TGB "SATCHANALAI;" 1335-33770, HS-TGF /03 "SRI UBON;" 1337-33771, /03 HS-TGG "PATHOOMAWADI"). HS-TGX *IN STAR ALLIANCE LIVERY. 14F, 50C, 325Y.
0 ORDERS 747-422 (PW4056), EX-(UAL), 7 CANCELED.
1 747-400F (24459, HS-TGJ), 2012-03. FREIGHTER.
2 ORDERS 747-400LR.
7 777-2D7 (TRENT 875-17) (25-27726, /96 HS-TJA "LAMPHUN;" 32-27727, /96 HS-TJB "UTHAI THANI;" 44-27728, /96 HS-TJC "NAKHON NAYOK;" 51-27729, /96 HS-TJD "MUKDAHAN;" 89-27730, /97 HS-TJE "CHALYAPHUM;" 95-27731, /97 HS-TJF "PAHNOM SARAKHAM;" 100-27732, /97 HS-TJG "PATTANI;" 113-27733, /97 HS-TJH "SUPHAN BURI"), 27730 PARTED OUT 2017-01. 30C, 279Y.
6 +9 ORDERS 777-2D7ER (TRENT 892-17) (588-34586, HS-TJR "NAKHON SAHAN" 2006-11; 595-34587, HS-TJS "PHRA NAKHON" 2006-11; 596-34588, HS-TJT "PATHUN WAN" 2006-11; 599-34589, HS-TJU, "PHICHIT" 2006-12; 665-34590, HS-TJV "NAKHOM PATHOM" 2007-09; 672-34591, HS-TJW "PHETCHABUN" 2007-10), 30C, 262Y.
0 777-200LRF (37986, N774SA), (SOF) WET-LEASED TO (TII) 2010-02. 2 RETURNED 2012-03, NOW OPERATED BY (DHL). FREIGHTER.
6 ORDERS 777-300ER (GE90-115BL):
2 +6 ORDERS 777-307ER (GE90-115BL) (42112, HS-TKW, 2014-08; 42114, HS-TKY, 2015-06), (SIL) LEASED.
9 777-3ALER (GE90-115BL) (1030-41520, /12 HS-TKK, "PHILAVAN;" 1049-41521, /12 HS-TKL; 1082-41522, /13 HS-TKM; 1091-41523, /13 HS-TKN "MENDININAT;" 41524, HS-TKO "VIMNOLMASSIRI" - SEE PHOTO; 41525, HS-TKP, 2013-07), (SIL) LEASED. 42C, 306Y.
6 +1 ORDER 777-3D7 (TRENT 892-17) (170-29151, /98 HS-TKB "CHAINARAI") (156-29150, /98 HS-TKA "SRIWANNA;" 250-29211, /99 HS-TKC "KWANMUANG;" 260-29212, /99 HS-TKD "THEPALI;" 304-29213, /00 HS-TKE "SUCHADA;" 310-29214, /00 HS-TKF "CHUTAMAT"). 34C, 330Y.
3 777-3D7ER (GE90-115BL) (42112, HS-TKW "MUKDASAYAM;" 42113, HS-TKX "SUDHARMA"), 2015-01.
5 777-35RER (GE90-115B) (627-35157, /07 HS-TKG "KRABI;" 637-35158, /07 HS-TKH "DARA-HA;" 650-35159, /07 HS-TKT; 653-35160, /07 HS-TKS; 693-35161, /08 HS-TKJ "DEJ-UDOM"), (JPL) WET-LEASED 2010-05 & LATER TWO 2011-07 & 2011-11. 8F, 30C, 274Y.
6 787-8 DREAMLINER (TRENT 1000) (35315, HS-TQA; 35320, 2014-10; 36110, 2014-12), (DEA) 12 YEAR LEASED.
2 787-9 DREAMLINER (TRENT 1000) (HS-TWA - SEE PHOTO 2018-07), (ILF) 12 YEAR LEASED:
0 MD-11 (CF6-80C2D1F) (466-48416, /91 HS-TMD "PHRA NAKHON;" 467-48417, /91 HS-TME "PATHUMWAN;" 501-48418, /92 HS-TMF "PHICHIT;" 505-48451, /92 HS-TMG "NAKHON SAWAN"), (WLD) LEASED, 48416; 48417; 48418; 48451; RETURNED. 10F, 42C, 233Y.
2 A300B4-601 (CF6-80C2A1) (368, /85 HS-TAA "SUWANNAPHUN;" 371, /85 HS-TAB "SRI ANOCHA;" 377, /85 HS-TAC "SRI AYUTTAYA;" 384, /85 HS-TAD "U THONG;" 395, /86 HS-TAE "SUKHOTHAI;" 398, /86 HS-TAF "RATCHASIMA"), 371; 377; 384; 395; RETURNED. 28C, 233Y.
2 A300B4-605R (CF6-80C2A5) 464, /88 HS-TAG "SRINAPTHA;" 518, /89 HS-TAH "NAPACHINDA"), 28C, 232Y.
2 A300B4-622R (PW4158) (566, /90 HS-TAK "PHAYA THAI;" 569, /90 HS-TAL "SRI TRANG"), MAINTAINED BY (SWS), 46C, 201Y.
1 A300B4-622R (PW4158) (577, /90 HS-TAM "CHIANG MAI;" 628, /92 HS-TAN "CHIANG RAI;" 629, /92 HS-TAO "CHANTHABURI;" 635, /92 HS-TAP "PATHUM THANI;" 681, /93 HS-TAR "YASOTHON;" 705, /93 HS-TAS "YALA;" 782, /98 HS-TAT "SRIMUANG;" 784, /98 HS-TAW "SURANARRE;" 785, /98 HS-TAX "THEPSATRI;" 786, /98 HS-TAY "SRISOONTHORN;" 787, /98 HS-TAZ "SEISUBHAN"), 46C, 201Y.
0 A310-204 (CF6-80C2A2), 415 DESTROYED, 424 SOLD TO CABOT AVIATION, UK, 2000-08, PARTED OUT.
1 +5 ORDERS A320-200 (V2527-A5) (6795, HS-TXU "CHACHOENGSAO"), EX-(F-WWBF), (SMBC) AVIATION CAPITAL 12 YEAR LEASED FOR THAI SMILE (TSM) OPERATIONS - - SEE PHOTO - - "TII-2012-07 THAI SMILE A320." 174Y.
5 ORDERS A320-200 (V2527-A5), FOR THAI SMILE (TSM) OPERATIONS. WITH SHARKLETS. 174Y:
20 ORDERS A321-200:
7 ORDERS (2011-12) A330-300:
8 A330-321 (PW4164) (50, /94 HS-TEA "MANOROM;" 60, /94 HS-TEB "SI SAKHON;" 62, /95 HS-TEC "BANG RACHAN;" 64, /95 HS-TED "DON CHEDI;" 65, /95 HS-TEE "KUSUMAN;" 66, /95 HS-TEF "SONG DAO" - - SEE INCDT - - 2013-09; 112, /95 HS-TEG "LAM PLAI MAT;" 122, /95 HS-TEH "SAI PURI"), 42C, 263Y.
2 A330-322 (PW4168) (209, /98 HS-TEJ "SUDAWADI;" 224, /98 HS-TEK "SRICHULALAK;" 231, /98 HS-TEL "THEPAMART"). 231 SOLD 1998-09. 42C, 263Y.
1 A330-323X (PW4168A) (346, /00 HS-TEM "JIRAPRABHA"). 42C, 263Y.
7 A330-343E (TRENT 700) (990, HS-TEN, 2009-04; 1003, HS-TEO, 2009-05; 1035, HS-TEP, 2009-07; 1037, HS-TEQ, 2009-12; 1060, HS-TER, 2009-12; 1074, HS-TES, 2009-12; 1408, HS-TBG "SAMUT PRAKAN" 2013-04). 42C, 263Y.
4 A340-541 (TRENT 553) (624, /05 HS-TLA "CHIANG KAM;" 628, /05 HS-TLB "UTTARADIT;" 698, 2005-10, HS-TLC "PHITSANULOK;" 775, HS-TLD, 2007-04), 698; RE-PAINTED IN ROYAL THAI AIR FORCE COLORS 2016-08. 60C, 42 "PREMIUM" Y; 113Y.
0 A340-642 (TRENT 556) (677, /05 HS-TNA "WATTHANA NAKHON;" 681, /05 HS-TNB "SARABURI;" 689, /05 HS-TNC "CHON BURI;" 710, /05 HS-TND "PHETCHABURI;" 719, /05 HS-TNE; 953, /08 HS-TNF "MAE HONG SON"), ALL 6 RETIRED BY 2015-04. 8F, 60C, 202Y.
6 ORDERS (2017-02) A350-900, AVIATION LEASE & FINANCE 12 YEAR LEASED:
1 +3 ORDERS A350-900, (ALAFCO) LEASED AUGUST 31, 2017.
2 A350-900 (050, 2016-10; (SEE PHOTO - "TII-A350 XWB 1ST FLIGHT - 2016-07.jpg,"), (TCI) 12 YEAR LEASED.
3 +3 ORDERS A380-841 (TRENT 970-84) (2012-09; 125, HS-TUE "SI RACHA" 2013-10; 131, HS-TUF), 12F, 60C, 435Y.
0 ATR42-300 (PW124), 2 SOLD.
2 ATR72-201 (PW124B) (164, /90 HS-TRA "LAMPANG;" 167, /90 HS-TRB "CHAI NAT"), FOR SALE, 65Y.
1 CHALLENGER CL601-3AER.
0 B AE 146-300 (ALF 502R-5), 5 SOLD FOR $19 MILLION EACH.
Click below for photos:
TII-1-Ms Usanee Sangsingkeo - 2017-03.jpg
TII-1-PIYASVASTI AMRANAND PRES-2009-12
TII-1-SORAJAK KASEMSUVAN - 2013-02
TII-2-KANOK ABHIRADEE CEO-2003-11-A
KANIT SANGSUBHAN, CHAIRMAN, EXECUTIVE BOARD.
PRAJIN JUNTONG, CHAIRMAN.
SUMETH DAMRONGCHAITHAM, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO) (2018-05).
Sumeth Damrongchaitham has been Managing Director of the Dhanarak Asset Development Company, a government-owned agency responsible for constructing and administering a new government complex, and managing government assets. Past positions include (COO) for Thai media.
MS USANEE SANGSINGKEO, ACTING PRESIDENT (2017-03).
CHARAMPORN JOTIKASTHIRA, FORMER PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO).
WORONATE LAPRABANG, MANAGING DIRECTOR, THAI SMILE (TSM) (2012-07).
PATEE SARASIN, CHIEF EXECUTIVE OFFICER (CEO), NOK AIR (NKA) (2004-04).
SUPACHAI LIMIPISVASTI, SENIOR EXECUTIVE VP & TECHNICAL ADVISOR.
KOBCHAI SRIVILAS, SENIOR EXECUTIVE VP CORPORATE PLANNING & INFORMATION TECHNOLOGY (IT) SERVICES.
PRAJAK JAMRUSMECHOTI, SENIOR EXECUTIVE VP BUSINESS DEVELOPMENT DEPARTMENT.
TASNAI SUDASNA NA AUDHAYA, SENIOR EXECUTIVE VP CORPORATE SUPPORT DEPARTMENT.
CAPTAIN MONTREE JUMRIENG, EXECUTIVE VP TECHNICAL DEPARTMENT.
NORAHUCH PLOYYAI, EXECUTIVE VP OPERATIONS.
KAWEEPAN RAUNGPAKA, EXECUTIVE VP FINANCE & ACCOUNTING.
PANDIT CHANAPAI, EXECUTIVE VP COMMERCIAL (2007-08).
CHINAWUT NRESSAENEE, EXECUTIVE VP CUSTOMER SERVICES DEPARTMENT.
NORAHUCH PLOYAI, EXECUTIVE VP STANDARDS & SAFETY.
SURADIS DISAKUL, EXECUTIVE VP CORPORATE DEVELOPMENT & SUPPORT.
SUTHEP SUEBSANTIWONGSE, EXECUTIVE VP HUMAN RESOURCES (HR) & GENERAL ADMINISTRATION.
WIT KITCHATHORN, GENERAL MANAGER.
KASEM PANPAT, VP FLIGHT OPERATIONS.
SUKASEM NUMANWANG, VP 2ND AIRCRAFT MAINTENANCE CENTER, SPECIAL PROJECTS.
DR SUPACHAI LIMPISAVASTI, VP HEAVY MAINTENANCE.
SANG-NGUN PORNPAIBOONSTID, VP CORPORATE PLANNING.
SUVAKHON NAWONGS, VP RISK MANAGEMENT & BUSINESS UNITS SUPPORT DEPARTMENT.
WALLOP BHUKKANASUT, VP SALES & DISTRIBUTION DEPARTMENT.
TUMMASAK CHUTIWONG, VP CRISIS MANAGEMENT & INFORMATION CENTER.
APICHART DANAIWAN, VP GENERAL ADMINISTRATION.
DOOSDEE SMUTHKOCHORN, VP GOVERNMENT RELATIONS.
CHAMARIE CHITWATTANAGORN, VP HUMAN RESOURCES (HR) MANAGEMENT & DEVELOPMENT.
VERAVAT CHOTIROS, VP INDUSTRY RELATIONS.
SUKASEM NUANGWANG, VP SPECIAL PROJECTS.
RAJ TANTA-NANTA, VP INVESTOR RELATIONS.
KRITTAPHON CHANTALITANON, VP ALLIANCES & COMMERCIAL STRATEGY.
KAWIN ASVARCHATROJ, MANAGING DIRECTOR CARGO AND COMMERCIAL MAIL.
PETHAI BOONYAVEJ, DEPUTY VP HEAVY MAINTENANCE.
DAMRONG CHAOSUAN, DIRECTOR QUALITY ASSURANCE (QA) (1996-07).
KRASIN MULLERT, DIRECTOR AIRCRAFT OVERHAUL (UTAPAO) (2001-09).
PAIRAT PAWSKUL, DIRECTOR TECHNICAL ENGINEERING (1996-07).
WUTTICHAI SANGUANMOO, DIRECTOR COMPONENT OVERHAUL (1999-11).
SAWAI JULAKARN, DIRECTOR ENGINE OVERHAUL.
YUTHANA LA-ONGTHONG, DIRECTOR COMPONENT OVERHAUL.
PISHNU SAMAPUDDHI, DIRECTOR MAINTENANCE OPERATIONS & CONTROL (1999-11), (email@example.com).
WUTTICHAI SAGUAN-MOO, DIRECTOR 2ND AIRCRAFT MAINTENANCE CENTER (1996-07)
CHAILERK THIPAYACHAN, DEPUTY DIRECTOR ENGINEERING (BKKTETG).
RANGSIMAN MOKKHASMIT, PRODUCT DESIGN & DEVELOPMENT DIRECTOR.
SUWEDH SUNDARAKUL, MANAGER PRODUCTION DEVELOPMENT DIVISION.