Thai Airways to focus on popular tourist destinations
Thai International Airways Plc (THAI) is aiming to capture 40% of the Thai market after integrating its "Thai Smile" subsidiary. It also plans to expand its routes, particularly to popular destinations in Japan, and expects a surge in winter flights.
The company plans to re-enter the stock market in the next fiscal quarter, THAI CEO Chai Eamsiri said, while outlining post-restructuring business goals.
Currently, Thai Airways is restructuring its business units, integrating Thai Smile's fleet and routes. The integration is expected to be fully completed by January.
"We aim to be the preferred choice for a significant portion of the Thai population. Other national carriers currently serve around 40-50% of their home country's market. In contrast, our market share is smaller due to our initial status as a state enterprise. The shift from a state enterprise to a private entity has facilitated our expansion plans," Chai said.
This organisational restructuring also involves the transfer of 20 Airbus A320 aircraft from Thai Smile airline, with four already transferred and 16 more to follow. Pilots, crew members, and destinations are also being gradually transferred. These efforts will bolster Thai Airways' fleet to 76 aircraft, up from the current 45, with an additional 11 aircraft being procured.
Besides increasing the share of the Thai market, THAI is focused on popular routes, especially Japan, which is a top destination for Thai travellers. The airline anticipates a growing demand from Japanese travellers to Thailand, following Japan's government encouraging its citizens to travel abroad. Thai Airways is confident that its comprehensive products and services will meet the needs of Japanese travelers. The airline's extensive route network covers various Japanese destinations, including Cambodia, Laos, Myanmar, Vietnam, India, and Europe. It is anticipated that in 2024, the number of Japanese travelers to Thailand will significantly increase.
Regarding the Japanese market forecast, the cabin occupancy factor is expected to average around 80-85% during the high season (October to December). Thai Airways has increased the number of flights to Japan and is expanding its business network through a partnership with Turkish Airlines, aiming to enhance connectivity across Asia, Europe, Australia, and the United States. This collaboration involves code-sharing to transfer passengers, utilising Istanbul as a hub. These initiatives will strengthen THAI’s global presence and enable access to passengers in various markets worldwide, according to Chai.
