How Thai Airways plans to expand and reclaim market dominance

 

Thai Airways on Tuesday announced an ambitious business strategy aimed at expanding its market share to 35% by 2029.

 

The announcement by CEO Chai Eamsiri at a press conference on Tuesday follows the airline's recent progress in its rehabilitation plan and ongoing capital restructuring efforts, coinciding with the pricing of newly issued ordinary shares.

 

Highlighting the global aviation industry's projected growth, Chai emphasised the opportune moment for Thai Airways to enhance its operations. The International Air Transport Association (IATA) forecasts the aviation market will reach $US 996 billion  by the year-end and more than double to over $US 1.99 trillion by 2043.

 

The IATA report estimates that passenger numbers will surge to 8.6 billion by 2043, with the Asia-Pacific region driving the majority of growth at a rate of 5.3%.

 

Key to the airline's strategy is expanding its network for both short and long-haul flights, creating a comprehensive connection system primarily focusing on the Asia-Pacific and Southeast Asian regions. Following a significant 40% market share loss in 2013 that reduced its current share to 26%, Thai Airways aims to reclaim ground by targeting a 35% market share by 2029, the CEO said.

 

"This target is conservatively optimistic. We believe in steady progress," Chai explained. "By 2033, we expect to increase our fleet to 150 aircraft." 

 

He emphasised that all procurement would be conducted directly with manufacturers, demonstrating the company's commitment to transparency.

 

By the year-end, the airline plans to operate a fleet of 77 aircraft serving 62 global destinations. 

 

 

 

The strategy includes improving direct customer sales channels and reducing reliance on agents, alongside implementing digital backend systems to enhance the online booking experience.

 

The airline is also undertaking organisational restructuring to streamline operations, including reducing outsourcing, outstations, and workforce to lower costs while improving operational flexibility.

 

"With our vision 'Fly to New Pride', Thai Airways will become the national airline that can compete at the forefront of the industry and be a source of national pride," Chai stated.

 

The airline is focusing on four key missions: improving customer experience, expanding revenue opportunities, boosting cost efficiency, and prioritising sustainable business practices. 

 

Leveraging Thailand's status as an aviation hub, Thai Airways aims to broaden its flight network and position the country as a major transit point, particularly for routes to Australia.

 

The transformation into a private enterprise underscores the airline's commitment to workforce development, digital integration, and modernisation. Despite intense competition, Thai Airways has already established 10 direct flight destinations and continues to strengthen its market presence through strategic airline partnerships, he said.