AIRLINES IN THAILAND

The main 3 cut price THAILAND DISCOUNT airlines are 

Orient Thai Airlines, Airasia  and Nok Airlines

with others: Bangkok Airlines; Phuket Air. 

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Asian airlines in better shape than global peers
source: Bkk Post June 23 2008

Fuel costs hurt but big players can cope

Many Asian airlines are expected to fly through the current turmoil caused by high fuel costs and slowing traffic with fewer casualties than their counterparts in other regions, particularly in the United States.
But chances are that better-established Asian airlines including Thai Airways International will see their profits squeezed in the short term, with some losing money, while some smaller carriers in the region could possibly be closed.
This is the most likely scenario for Andrew Herdman, director-general of the Association of Asia Pacific Airlines (AAPA), a grouping of 17 leading Asian airlines and a New Zealand carrier.
With their strong balance sheets, performance records, good reputation for services and diverse markets, Asian airlines are in much better shape than US and European carriers to weather the violent storms, Mr Herdman said.
''But on the other hand, the challenge is fuel is rising very fast, so how quickly you can hedge, and how quickly you can pass on the costs are important,'' he pointed out.

High jet fuel prices, which have gone above $160 a barrel, are causing major headaches for the airline industry in terms of costs and significantly weakening air travel demand both for both business and leisure sectors.

The International Air Transport Association (IATA), which represents 230 airlines, warned recently that the industry may face a collective loss of $6.1 billion this year, if crude oil prices stayed at an average of $135 a barrel for the rest of the year.

Soaring fuel costs are consuming about 40% of each airline's total operating costs, up from about 30% previously, the AAPA said.

Asian airlines get some relief in the form of respectable economic growth in many countries, though they are not entirely insulated from the US downturn and a potential slowdown in Europe.
The Kuala Lumpur-based AAPA anticipates slower growth for Asian carriers than they had experienced.
Smaller carriers in Asia are prone to feel the pinch of a hostile environment, but the extent of potential shutdowns would be smaller than in other regions, the AAPA director-general said.
Signs of a slowdown began to show in April when AAPA member airlines, such as THAI, Singapore Airlines and Cathay Pacific, recorded modest growth.
The member airlines in April carried a total of 11.9 million international passengers, up only 2.2% year-on-year in terms of revenue passenger kilometres (RPK), while growth in international passenger traffic was similarly modest, registering a year-on-year increase of 2.6%.
The growth in demand failed to keep pace with the 3.7% growth in capacity, leading to a decline of 0.8 percentage points in the average passenger load factor to 75.2%, according to AAPA statistics.
Demand for air freight also remained subdued in April, with AAPA international freight traffic growing by 2.1% in FTK (freight tonne kilometre) terms. However, the average cargo load factor for the month gained 1.6 percentage points to 67.2%, on a 0.3% reduction in offered capacity.
In any case, Mr Herdman said, AAPA airlines would not be able to repeat the profitability they achieved last year. They had aggregate profits of $5.2 billion in 2007, representing a 5% net margin, a marked improvement on the 3% margin recorded in 2006. Combined revenues reached $103 billion, 11% higher than in 2006.
International passenger traffic volume set a record, growing by 4.2%, and the passenger load factor rose to a record high of 77.1%. The volume of international air cargo also set a record, although the growth rate was a more modest 2.7%.

Over the long term, he said, Asian carriers could increase their share of global air travel because of their ability to deliver what passengers want.
But the AAPA chief added a word of caution: ''The fact that you are through a downturn does not mean the long-term growth story is intact. The future is bright for those people who can manage through this downturn.''

 

 

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 NOK AIR 

THAI board to decide future of Nok Air

Bangkok Post 26th June 2008
Thai Airways International will decide the future of its loss-ridden low-cost airline Nok Air today, but will not increase its holding, THAI president Apinan Sumanaseni said yesterday. At the same time, a Nok Air executive said the airline will not stop flying.Mr Apinan said the airline will be officially informed of today's decision at a Nok Air board meeting on July 4.

THAI has a 39% stake in Nok Air, which has been hard hit by rising fuel costs and falling traffic.

Some estimate the airline's losses at over one billion baht. However, Nok Air executive vice-president Sehapan Chumsai denied the accumulated loss is that high. The airline will keep flying, he said. Services and ticket sales will continue as normal.

He said Nok Air management had tried to adjust the airline's operations to cope with rising fuel prices, as had other airlines. Nok Air had suffered losses only during the last four to five months.

The airline would be able turn its business around eventually, he said.

                                 

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BANGKOK: 138/70 17th Floor, Jewellery Center Nares Road, Bangrak , Bangkok 10500, Thailand Tel 662- 267-2999 Fax 662- 267-3216-17 Tickets & reservations 66-2-2673210-5   E-Mail  reservation@orient-thai.com

 

Thai Airways. (TG) 89 Vibhavdirangsit Rd. or 10900 485 Silom Rd. Bkk 10500. Ticket airport: 535-2846/7; cargo: 535-3150/1 reserv: 280-0060; 628-2000ticketing:234-3100/1 Fax(02) 513-0203
Phuket International Airport Office Phuket International Airport 2nd Floor Room DH227, Maikhaow Rd., Amphur Thaiarng, Phuket 83110 Tel 66-76-351238, 66-76-328620, 66-76-328621, 66-76-328623, 66-76-328624 Fax 66-76-328581 Tickets & reservations66-76-351238, 66-76-328620, 66-76-328621, 66-76-328623, 66-76-328624 E-Mail hkt_office@orient-thai.com Chiang Mai International Airport Office Chiang Mai International Airport 1th Floor Suthep Rd., Amphur Mueang, Chiang Mai 50100Tel 66-53-922197 Fax 66-53-904729Tickets & reservations66-53-904720-728E-Mail cnx_office@orient-thai.com CHECK IN AT COUNTER NO. 17-18
 

Chi Chiang Rai International Airport 404 Moo 10, Rimkok District, Bando Amphur Mueang, Chiang Rai 57100Tel66-53-793555 Fax66-53-793041 E-Mail cei_office@orient-thai.com

Hat Yai International Airport Office Hatyai Internation Airport 99 Village No.3, Sanambin Panij Rd., Klong Hoi Khong District, Songkhla 90115 Tel 66-74-240169 Fax 66-74-227286Tickets & reservations66-74-250911E-Mail hdy_office@orient-thai.com
UDON THANI AIRPORT OFFICEUdon Thani Internation Airport 1FL. Tumbun Nadee, Amphor Muang, Udon Thani, Thailand 41000 Tel 66-42-249 249 Fax 66-42-249 489 E-mail uth_office@orient-thai.com

Dragon Air (KA
37/52 Montri Rd., Amphur Muang, Phuket  83000
 

PHUKET AIRLINES Co., Ltd. 1168/102 34th-B Fl. Lumpini Tower Bldg. Rama IV Road. Thungmahamek. Sathorn. Bangkok 10120. Thailand.
Tel. (662) 679-8999 (10 Line) Fax. (662) 679-8235-6 E-mail :
info@phuketairlines.com

Phuket Air, began to two destinations in the Southern provinces of Thailand namely Ranong and Phuket with Boeing 737-200. Since then, they have expanded route structure and will continue to extend sectors to cover more domestic and international destinations. Fleet includes additional jets as well as a new turbo-prop aircraft.

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