Tourism Indochina: Suvarnabhumi Airport is Getting Back to Business

Tourism Indochina: Suvarnabhumi Airport is Getting Back to Business

(Tourism Indochina: Date : 2008-12-08):

Bangkok’s Suvarnabhumi Airport resumed full services from 11 am (0400 GMT) on Friday, after the end of an eight-day siege by anti-government protestors on Wednesday.

Among the airlines resuming operations on Friday were Thai Airways, Cathay Pacific Airways AirAsia and Bangkok Airways.

Emirates, Qantas and Jet Airways resumed full services on Saturday while Lufthansa resumed scheduled flights to Suvarnabhumi on Sunday.

Other major airlines are in the process of resuming their operations to Suvarnabhumi and will continue to do so in the coming days.

At 9am on Friday morning, acting Transport Minister Santi Promphat joined the International Air Transport Association (IATA) officials and the International Civil Aviation Organization (ICAO) to inspect Suvarnabhumi’s readiness.

Mr Santi expressed confidence that Suvarnabhumi airport is 100 per cent secured, and said that the government would be dedicated to restoring the confidence of tourists and businessmen.

Chaophya Park Hotel & Resorts, General Manager Andrew J Wood expressed the sentiments which are no doubt being felt by all in Thailand’s tourism industry, “we are all looking forward to getting back to business as usual”.

Six Senses Resorts & Spas, Chief Marketing Officer, Raymond Hall has urged Australian not to reconsider their travel plans to Thailand.

“As an Australian living in Bangkok, I have no hesitation at all in saying to come. Thailand has not changed and is still a great experience and is affordable. The demonstrations were unfortunate, to say the least, however, like Australia, Thai politics can be robust.”

He continued, “Quite frankly, many thousands of Thai hospitality workers need the Australian market to have confidence that Thailand has not changed fundamentally. It is still the land of smiles, however corny that may sound, and the hospitality is legendary.

“Already it is possible to get peak period accommodation at low season rates at may destinations, including at Six Senses properties in Hua Hin, Samui, Phuket, and Yao Noi and Naka – just beyond Phuket.

“As far as I am concerned, personal safety of visitors was not an issue in the recent demonstrations. The airport issue was a huge inconvenience to many visitors and very embarrassing to almost all Thais. It really is a great time to visit in a period in which it is often difficult to get accommodations, it is now possible to have choices and at great rates.”

The damage to Thailand’s tourism industry has been colossal with the airport shutdown already costing the tourism- and export-dependent economy hundreds of millions of dollars.

Thailand authorities have said that they are prepared to weather the storm, "We might lose about one million (tourists) but not more than that," Phornsiri Manoharn, Governor of Tourism Authority of Thailand (TAT) said, referring to a target of 15.5 million arrivals this year, a 7 percent rise from 2007.

"Most of our tourists are repeat travellers. I've talked to many of them. They said they will come back and they're not worried," she said.

Thailand’s tourism directly employs 1.8 million people and brings in the equivalent of 6 percent of GDP to the county’s coffers.

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Vietnam tours=> http://www.tourismindochina.com/vietnam/tours/
Laos tours=> http://www.tourismindochina.com/laos/tours/
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Tourism Indochina: Thai Airway 2009 revenue targets will not be met

Tourism Indochina: Thai Airway 2009 revenue targets will not be met

(Tourism Indochina:Date : 2008-12-30:)

Thai Airways this week announced it will not be able to meet its previously set out revenue targets for 2009, with expectations that it will fall some 3-5% below its predictions.

2008 revenue will also drop, decreasing by 10% when compared to 2007, Thai Airways adds.

Load factors for the current year are also expected to fall below targets, set to sit at 70%, three per cent below previous forecasts, said the carrier in a press conference on Monday.

As such the carrier will look to making more network adjustments, with long-haul network changes on the top of the agenda, and South Africa and New Zealand the likely areas to be hit.

“The company has revised its business and marketing plan for next year due to the worldwide economic slowdown and the closure of two airports recently,” said Pandit Chanaphai, Thai Airways Executive Vice President Commercial.

“The target will have to be revised as we accept that global economic slowdown will certainly affect us.”

A decision won’t be finalized until after the next board meeting, but it is likely that the Bangkok–Johannesburg will be cut, while Bangkok– Auckland will be revised.

Thai Airways hopes that dropping capacity will see it make an average of 74% on its load factor average for 2009.

In 2008, Thai has already dropped its direct service to New York, while it now operates its Los Angeles services via Tokyo.

During the siege of protestors at Bangkok’s two main airports, Thai Airways had said that it expected to lose some THB500 million for each day of the disruptions during its peak travel period.


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Vietnam tours=> http://www.tourismindochina.com/vietnam/tours/
Laos tours=> http://www.tourismindochina.com/laos/tours/
More about Cambodia Rice Exporter, please visit: http://www.cambodiaorganic.com/

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Tourism Indochina: Will Thai Airways have the courage of Malaysia Airlines

(Tourism Indochina:Date : 2009-01-31):

Repeated rumors about Thai Airways International quasi-bankruptcy have surfaced in Thailand’s newspapers over the last ten days, forcing the country’s national carrier to issue a release to officially deny it. But, according to The Nation newspaper, Thai management last Thursday also had to reassure the airline’s employees assuring of “stable outlook’” and adding also that staff lay-offs would be the last option.

It is definitely true that the airline will not go bankrupt. Thailand’s government, which holds 51 percent of the airline through the Ministry of Finance, will not let it happen. Thai Airways might even get a financial injection due to a severe liquidity shortage. The airline needs some Baht 19 billion (US$ 540 million) to resolve its liquidity problems. It has earlier discussed an agreed with Airbus to postpone the first payment of six new Airbus A330-300 by three months. The six jets must be delivered over the year and replace aging aircraft such as Airbus A300 and Boeing 747-300.

Thai Airways lost already Baht 6.6 billion (US$ 188 million) during the first nine months of the year with experts estimating now that the airline could lose up to US$ 300 million. In an interview conducted in late December, Thai Airways executive vice president for commercial and marketing Pandit Chanapai estimated that the closure of both Bangkok airports between November and December had cost the airline some Baht 500 million per day.

However, Bangkok airports’ woes just accelerated a rapid downturn in the airline’s fortune. If Thai Airways wants to survive, it has to change its way to conduct business and get rid of political interference, nepotism and its culture of inefficiency. In the last decade, Thai Airways’ strategy has been constantly fluctuating due to regular changes in its board of directors. They are generally acknowledged as rather incompetent as most of them are political appointees.

Thai Airways currently has one of the oldest fleet of any large Southeast Asian carrier. On average, 11.6 years with over 20-years old aircraft such as Airbus A300 and Boeing 747-400.

Adding to the airline’s woes is its overstaffing problem. The airline currently has 27,000 employees, compared to 14,000 at Singapore Airlines or 19,000 at Malaysia Airlines.

The Thai flag carrier is also struggling to build an efficient air hub at Bangkok Suvarnabhumi. complete missed integration of low cost subsidiary Nok Air into Thai’s network strategy, the forced transfer of some domestic routes to Don Muang or Thai website’s failed revamp can be described at best as “misguided” strategic decisions from the board.

Transport Minister Sopon Sarum acknowledged himself recently the need to have a board of directors capable to deal with hard times. “The new board must consist of people who can devote themselves and their time to their work,” the minister explained.

Under close scrutiny are all perks and advantages provided to all employees and especially directors and board members. The Bangkok Post revealed that the minister would like to review various allowances for fuel expenses, entertainment and attending board of directors meeting. Each year, directors, their families and accompanying passengers are entitled to 15 free first-class tickets for domestic and international routes with previous directors and their families to pay only 25 per cent of normal fares for up to 12 international and six domestic trips per year. Staff can enjoy up to 90 percent discount on air tickets, according to The Bangkok Post.

Although Thai Airways can’t indulge itself such luxuries for its employees, it is unlikely that anything will happen. The Minister will definitely face resilience from Thai staff with a board of directors watering down any decision until another Minister of Transport takes over. It is also unlikely that Thai Airways will reduce its staff, many of them being there thanks to their connections. “Retrenching employees will be the last option,” reassures Chanapai.

Finance Minister Korn Chatikavanij asked already Thai Airways management to present a restructuration plan that will lead to financial sustainability of the airline and have long-term effects. Only a credible plan would open up the doors to the Ministry’s generosity.

Some measures have already been taken but they are certainly insufficient. According to Chanapai, Thai has started restructuring its network. Non-stop very long haul routes from Bangkok to Los Angeles and New York are already gone, Johannesburg was close on January 16 and Auckland is now under review.

“With the sharp decline in markets such as Korea and Japan, we think to provide more intra-orient flights,” added Chanapai.

Under consideration are frequencies such as Bangkok-Manila or Taiwan-Japan or Bangkok-Manila-Korea. Chanapai would also like to fly to the USA via Mainland China. Capacities will now be adjusted strictly to demand and not anticipated with a close eye on yields. But rather to close routes, Chanapai is keener to play on frequencies.

The airline wants also to renegotiate fees with its GDS. “It still costs us US$3 per transaction,” stresses the executive vice president. Other decisions include the reshaping of Thai website. “Only 3 percent of our sales are on the web as we would like to reach at least 12 percent”.

And by next March, Thai will finally retransfer all its domestic operations from Don Muang to Suvarnabhumi.

Financial relief will also come from the end of a costly fuel hedging operation in March and an anticipated travelers’ come-back in the second half of the year. Despite controversies about the delivery of new Airbus A330, the brand new aircraft will help Thai airways to cut its fuel and maintenance costs substantially. But Thai Airways must further act and is due to present more measures in February. And they should be painful, if politics allow it.

The airline could take its inspiration from its Malaysian neighbor. Managed in a similar way to Thai Airways today, Malaysia Airlines (MAS) was on the verge of bankruptcy in 2006. It went then through a painful but successful restructuring process. With new cash injected into the airline, Malaysia’s government also told the management that it would be the last time they would bail out the national carrier. But they also promise not to interfere into MAS management and commercial decisions. Today, Malaysia Airlines is again profitable. A lesson to be meditated by Thai authorities and Thai Airways board of directors.

Cambodia tours=> http://www.tourismindochina.com/cambodia/tours/
Vietnam tours=> http://www.tourismindochina.com/vietnam/tours/
Laos tours=> http://www.tourismindochina.com/laos/tours/
More about Cambodia Rice Exporter, please visit: http://www.cambodiaorganic.com/

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THAI says goodbye to Don Mueang airport

THAI says goodbye to Don Mueang airport

THAI Airways will stop using Don Mueang airport and operate all flights from Suvarnabhumi Airport as of March 29, acting THAI president Nargongsak Sangkhapong said Friday.

Under the single-airport policy, all 23 of Don Mueang’s THAI flights will be transferred to Suvarnabhumi Airport, in an effort to strengthen the airport as a major hub for THAI and Star Alliance.

THAI’s decision to cease domestic and international operations from Don Mueang is expected to save the national flag carrier an estimated Bt600 million in salaries and operational overhead costs annually.


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Vietnam tours=> http://www.tourismindochina.com/vietnam/tours/
Laos tours=> http://www.tourismindochina.com/laos/tours/
More about Cambodia Rice Exporter, please visit: http://www.cambodiaorganic.com/

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Thai Airways back IATA's urgent plea

Thai Airways back IATA's urgent plea


Thai Airways International Public Company Limited (THAI) have said that it will support the International Air Transport Association’s (IATA) recovery plan at this week’s IATA World Cargo Symposium 2009.

IATA joint with THAI to organise the Cargo Symposium being held 2-5 March at the Centara Grand Hotel, the Bangkok Convention Centre.

This year’s theme for the symposium was “Focus on the customer: Delivering in Turbulent Times”, with IATA emphasising the need for more effective operations on the cargo supply chain in order to tackle the challenging economic environment.

ACM Narongsak Sangapong, THAI Senior Executive Vice President Corporate Secretariat said in a statement that THAI Cargo would review and improve the utilisation of cargo space, equipment and its workforce.

THAI said that measures had already been taken to improve delivery services and cargo management systems. Campaigns and activities have also been rolled out to increase sales and revenues.

The group added that it would follow IATA’s advice in concentrating on e-payment, e-freight and Cargo 2000 so that the global cargo industry can become one step closer to establishing a quality standard.


Cambodia tours=> http://www.tourismindochina.com/cambodia/tours/
Vietnam tours=> http://www.tourismindochina.com/vietnam/tours/
Laos tours=> http://www.tourismindochina.com/laos/tours/
More about Cambodia Rice Exporter, please visit: http://www.cambodiaorganic.com/

Read more...

Will Thai Airways have the courage of Malaysia Airlines

Repeated rumors about Thai Airways International quasi-bankruptcy have surfaced in Thailand’s newspapers over the last ten days, forcing the country’s national carrier to issue a release to officially deny it. But, according to The Nation newspaper, Thai management last Thursday also had to reassure the airline’s employees assuring of “stable outlook’” and adding also that staff lay-offs would be the last option.

It is definitely true that the airline will not go bankrupt. Thailand’s government, which holds 51 percent of the airline through the Ministry of Finance, will not let it happen. Thai Airways might even get a financial injection due to a severe liquidity shortage. The airline needs some Baht 19 billion (US$ 540 million) to resolve its liquidity problems. It has earlier discussed an agreed with Airbus to postpone the first payment of six new Airbus A330-300 by three months. The six jets must be delivered over the year and replace aging aircraft such as Airbus A300 and Boeing 747-300.

Thai Airways lost already Baht 6.6 billion (US$ 188 million) during the first nine months of the year with experts estimating now that the airline could lose up to US$ 300 million. In an interview conducted in late December, Thai Airways executive vice president for commercial and marketing Pandit Chanapai estimated that the closure of both Bangkok airports between November and December had cost the airline some Baht 500 million per day.

However, Bangkok airports’ woes just accelerated a rapid downturn in the airline’s fortune. If Thai Airways wants to survive, it has to change its way to conduct business and get rid of political interference, nepotism and its culture of inefficiency. In the last decade, Thai Airways’ strategy has been constantly fluctuating due to regular changes in its board of directors. They are generally acknowledged as rather incompetent as most of them are political appointees.

Thai Airways currently has one of the oldest fleet of any large Southeast Asian carrier. On average, 11.6 years with over 20-years old aircraft such as Airbus A300 and Boeing 747-400.

Adding to the airline’s woes is its overstaffing problem. The airline currently has 27,000 employees, compared to 14,000 at Singapore Airlines or 19,000 at Malaysia Airlines.

The Thai flag carrier is also struggling to build an efficient air hub at Bangkok Suvarnabhumi. complete missed integration of low cost subsidiary Nok Air into Thai’s network strategy, the forced transfer of some domestic routes to Don Muang or Thai website’s failed revamp can be described at best as “misguided” strategic decisions from the board.

Transport Minister Sopon Sarum acknowledged himself recently the need to have a board of directors capable to deal with hard times. “The new board must consist of people who can devote themselves and their time to their work,” the minister explained.

Under close scrutiny are all perks and advantages provided to all employees and especially directors and board members. The Bangkok Post revealed that the minister would like to review various allowances for fuel expenses, entertainment and attending board of directors meeting. Each year, directors, their families and accompanying passengers are entitled to 15 free first-class tickets for domestic and international routes with previous directors and their families to pay only 25 per cent of normal fares for up to 12 international and six domestic trips per year. Staff can enjoy up to 90 percent discount on air tickets, according to The Bangkok Post.

Although Thai Airways can’t indulge itself such luxuries for its employees, it is unlikely that anything will happen. The Minister will definitely face resilience from Thai staff with a board of directors watering down any decision until another Minister of Transport takes over. It is also unlikely that Thai Airways will reduce its staff, many of them being there thanks to their connections. “Retrenching employees will be the last option,” reassures Chanapai.

Finance Minister Korn Chatikavanij asked already Thai Airways management to present a restructuration plan that will lead to financial sustainability of the airline and have long-term effects. Only a credible plan would open up the doors to the Ministry’s generosity.

Some measures have already been taken but they are certainly insufficient. According to Chanapai, Thai has started restructuring its network. Non-stop very long haul routes from Bangkok to Los Angeles and New York are already gone, Johannesburg was close on January 16 and Auckland is now under review.

“With the sharp decline in markets such as Korea and Japan, we think to provide more intra-orient flights,” added Chanapai.

Under consideration are frequencies such as Bangkok-Manila or Taiwan-Japan or Bangkok-Manila-Korea. Chanapai would also like to fly to the USA via Mainland China. Capacities will now be adjusted strictly to demand and not anticipated with a close eye on yields. But rather to close routes, Chanapai is keener to play on frequencies.

The airline wants also to renegotiate fees with its GDS. “It still costs us US$3 per transaction,” stresses the executive vice president. Other decisions include the reshaping of Thai website. “Only 3 percent of our sales are on the web as we would like to reach at least 12 percent”.

And by next March, Thai will finally retransfer all its domestic operations from Don Muang to Suvarnabhumi.

Financial relief will also come from the end of a costly fuel hedging operation in March and an anticipated travelers’ come-back in the second half of the year. Despite controversies about the delivery of new Airbus A330, the brand new aircraft will help Thai airways to cut its fuel and maintenance costs substantially. But Thai Airways must further act and is due to present more measures in February. And they should be painful, if politics allow it.

The airline could take its inspiration from its Malaysian neighbor. Managed in a similar way to Thai Airways today, Malaysia Airlines (MAS) was on the verge of bankruptcy in 2006. It went then through a painful but successful restructuring process. With new cash injected into the airline, Malaysia’s government also told the management that it would be the last time they would bail out the national carrier. But they also promise not to interfere into MAS management and commercial decisions. Today, Malaysia Airlines is again profitable. A lesson to be meditated by Thai authorities and Thai Airways board of directors.


Cambodia tours=> http://www.tourismindochina.com/cambodia/tours/
Vietnam tours=> http://www.tourismindochina.com/vietnam/tours/
Laos tours=> http://www.tourismindochina.com/laos/tours/
More about Cambodia Rice Exporter, please visit: http://www.cambodiaorganic.com/

Read more...

Will Thai Airways have the courage of Malaysia Airlines

Repeated rumors about Thai Airways International quasi-bankruptcy have surfaced in Thailand’s newspapers over the last ten days, forcing the country’s national carrier to issue a release to officially deny it. But, according to The Nation newspaper, Thai management last Thursday also had to reassure the airline’s employees assuring of “stable outlook’” and adding also that staff lay-offs would be the last option.

It is definitely true that the airline will not go bankrupt. Thailand’s government, which holds 51 percent of the airline through the Ministry of Finance, will not let it happen. Thai Airways might even get a financial injection due to a severe liquidity shortage. The airline needs some Baht 19 billion (US$ 540 million) to resolve its liquidity problems. It has earlier discussed an agreed with Airbus to postpone the first payment of six new Airbus A330-300 by three months. The six jets must be delivered over the year and replace aging aircraft such as Airbus A300 and Boeing 747-300.

Thai Airways lost already Baht 6.6 billion (US$ 188 million) during the first nine months of the year with experts estimating now that the airline could lose up to US$ 300 million. In an interview conducted in late December, Thai Airways executive vice president for commercial and marketing Pandit Chanapai estimated that the closure of both Bangkok airports between November and December had cost the airline some Baht 500 million per day.

However, Bangkok airports’ woes just accelerated a rapid downturn in the airline’s fortune. If Thai Airways wants to survive, it has to change its way to conduct business and get rid of political interference, nepotism and its culture of inefficiency. In the last decade, Thai Airways’ strategy has been constantly fluctuating due to regular changes in its board of directors. They are generally acknowledged as rather incompetent as most of them are political appointees.

Thai Airways currently has one of the oldest fleet of any large Southeast Asian carrier. On average, 11.6 years with over 20-years old aircraft such as Airbus A300 and Boeing 747-400.

Adding to the airline’s woes is its overstaffing problem. The airline currently has 27,000 employees, compared to 14,000 at Singapore Airlines or 19,000 at Malaysia Airlines.

The Thai flag carrier is also struggling to build an efficient air hub at Bangkok Suvarnabhumi. complete missed integration of low cost subsidiary Nok Air into Thai’s network strategy, the forced transfer of some domestic routes to Don Muang or Thai website’s failed revamp can be described at best as “misguided” strategic decisions from the board.

Transport Minister Sopon Sarum acknowledged himself recently the need to have a board of directors capable to deal with hard times. “The new board must consist of people who can devote themselves and their time to their work,” the minister explained.

Under close scrutiny are all perks and advantages provided to all employees and especially directors and board members. The Bangkok Post revealed that the minister would like to review various allowances for fuel expenses, entertainment and attending board of directors meeting. Each year, directors, their families and accompanying passengers are entitled to 15 free first-class tickets for domestic and international routes with previous directors and their families to pay only 25 per cent of normal fares for up to 12 international and six domestic trips per year. Staff can enjoy up to 90 percent discount on air tickets, according to The Bangkok Post.

Although Thai Airways can’t indulge itself such luxuries for its employees, it is unlikely that anything will happen. The Minister will definitely face resilience from Thai staff with a board of directors watering down any decision until another Minister of Transport takes over. It is also unlikely that Thai Airways will reduce its staff, many of them being there thanks to their connections. “Retrenching employees will be the last option,” reassures Chanapai.

Finance Minister Korn Chatikavanij asked already Thai Airways management to present a restructuration plan that will lead to financial sustainability of the airline and have long-term effects. Only a credible plan would open up the doors to the Ministry’s generosity.

Some measures have already been taken but they are certainly insufficient. According to Chanapai, Thai has started restructuring its network. Non-stop very long haul routes from Bangkok to Los Angeles and New York are already gone, Johannesburg was close on January 16 and Auckland is now under review.

“With the sharp decline in markets such as Korea and Japan, we think to provide more intra-orient flights,” added Chanapai.

Under consideration are frequencies such as Bangkok-Manila or Taiwan-Japan or Bangkok-Manila-Korea. Chanapai would also like to fly to the USA via Mainland China. Capacities will now be adjusted strictly to demand and not anticipated with a close eye on yields. But rather to close routes, Chanapai is keener to play on frequencies.

The airline wants also to renegotiate fees with its GDS. “It still costs us US$3 per transaction,” stresses the executive vice president. Other decisions include the reshaping of Thai website. “Only 3 percent of our sales are on the web as we would like to reach at least 12 percent”.

And by next March, Thai will finally retransfer all its domestic operations from Don Muang to Suvarnabhumi.

Financial relief will also come from the end of a costly fuel hedging operation in March and an anticipated travelers’ come-back in the second half of the year. Despite controversies about the delivery of new Airbus A330, the brand new aircraft will help Thai airways to cut its fuel and maintenance costs substantially. But Thai Airways must further act and is due to present more measures in February. And they should be painful, if politics allow it.

The airline could take its inspiration from its Malaysian neighbor. Managed in a similar way to Thai Airways today, Malaysia Airlines (MAS) was on the verge of bankruptcy in 2006. It went then through a painful but successful restructuring process. With new cash injected into the airline, Malaysia’s government also told the management that it would be the last time they would bail out the national carrier. But they also promise not to interfere into MAS management and commercial decisions. Today, Malaysia Airlines is again profitable. A lesson to be meditated by Thai authorities and Thai Airways board of directors.


Cambodia tours=> http://www.tourismindochina.com/cambodia/tours/
Vietnam tours=> http://www.tourismindochina.com/vietnam/tours/
Laos tours=> http://www.tourismindochina.com/laos/tours/
More about Cambodia Rice Exporter, please visit: http://www.cambodiaorganic.com/

Read more...