NICHOLAS IONIDES SINGAPORE
Thai Airways International is planning to drop loss-making domestic routes and increase some international flights as part of a major overhaul
The Star Alliance member says it may withdraw from up to 17 domestic routes and leave them for private competitors. This could leave Thai with domestic services on just six trunk routes.
Private domestic carrier PB Air and new carrier Air Andaman have been talking to Thai about launching services on minor routes from October. Air Andaman is expected to take over up to 10 routes and PB Air five routes, most in the north and north-east of the country.
Thai's moves are in line with calls by Deputy Transport Minister and former Thai executive Pracha Maleenond, who has publicly censured the carrier for its service standards and management style. Pracha has called for the carrier to focus more on international routes, drop loss-making domestic services and develop a leaner structure to return it to profitability and prepare for an eventual share sale. The carrier is 93%-owned by the Thai Government.
Thai has had a rough ride this year, regularly criticised by the government and undergoing a sweeping board shake-up. Its 15-member board resigned en masse in April after a change in government. The airline's president, Bhisit Kuslasa-yanon, who took office in October to replace long-time president Thamnoon Wanglee, only won back his seat on the board after the Finance Ministry pressured Pracha to keep him on.
Bhisit will not remain as president for long, however, as the government has already announced that it will start looking for a replacement. Bhisit's term expires in September next year.
Meanwhile, another new carrier is preparing for launch in Thailand, following Air Andaman's entry into the domestic market last year. Phuket Airlines is seeking to launch services in September from the southern coastal province of Ranong. It will use two Boeing 737-200s to fly to Bangkok, Chiang Mai and domestic destinations and also has its eye on beginning international routes once it is up and running.
Source: Airline Business
