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Bangkok Airways plays safe 
Bangkok Airways plays safe
Bangkok Airways focuses on upgrading
aircraft to sustain traffic on the current network.
Bangkok
Airways says it has no definite long-term plans on expansion or new
destinations, except for the possible resumption of its Macau service in
Q4.
The airline cancelled its Macau service, late last year, in
the face of unrelenting competition from Thai Air Asia, which operates
three daily flights to the casino destination.
Faced by declining
bookings in Europe - its main source market for lucrative Samui and
Siem Reap services - Bangkok Airways is now concentrating on building
local and regional business.
A long-term and ambitious plan to
acquire the A350XWB for services to Europe is in the freezer and is
unlikely to be back on the table until 2015.
However, it
continues to take delivery of new aircraft that can be used in the
current network. This month, the fifth of six new A319s will arrive. The
aircraft has a two-class configuration, while the last one, due next
year, will have a single-class. Overall, Bangkok Airways has ordered
four dual-class A319s and two single-class versions.
The airline
is going to return its two Boeing 717s - one in September and another in
October. Also, it still has to decide whether to keep three A320s to
cater for winter season traffic, instead of decommissioning two of them
as earlier planned.
Bangkok Airways vice president – corporate
communications, Nandhika Varavarn, told TTR Weekly: "We can no longer
plan long-term because of a volatile environment, whammies coming up one
after another. Also, long- term bookings are in decline. Our business
plan is threatened by instability in Thailand, economic recession and
the recent influenza threat. People tighten their belts and research
more for value. We have to monitor trends closely."
Ms Nandhika
admits the performance is weak across the network.
"All routes
are affected. This year is the worst year on record. We have to work
really hard to promote even Samui, which previously, sold itself."
The
airline’s management uses a network management tool that tags a warning
to a route if it is not performing well.
"If routes are hanging
on the edge, we'll see what we can do to save them such as introducing
fare promotions or advertisements. We try best to maintain a service
through a season."
Marketing strategies have changed to pay more
attention to Thais, rather than relying mostly on foreign markets. And
Ms Nandhika said that the more aggressive online promotions have proved
effective. “We are happy with average load factor, though that didn’t
mean yield. We can not get everything, we have to understand that."
During
Q1, load factor of domestic routes was average at 75.33% compared to
69.33% of the same period last year and international routes, 60.98%
against 55.77%. Internet sales contributes 20.83% from total passenger
revenue.
Also from statistics of the airline, Thais still travel
domestic and outbound but inbound traffic is less. From January to
March, Thai passenger number increased as much 53.71% from 34,778 to
53,456; whereas, international passenger number dropped 25.71% to
199,790. In total, Bangkok Airways carried 298,136 passengers during Q1
comparing to 350,393 of 2008’s Q1 (67% international clients, 17.79%,
Thais and 15.1%, unidentified).
Ms Nandhika commented that Thais
travel more, domestically and regionally, not only because airlines’
promotions but hotels and tourism related business also handing out
bargains as economic recession impacted and Thailand double whammy with
political turmoil.
In term of international tourists, she thinks
although other countries are giving deals as well but Thailand is still a
preferred choice; only our politics are stabilized.
Moreover,
the political problem has impacted the airline as a feeder to
neighboring country too. She cautions that if this last long, it surely
affect Thailand as a gateway to Mekong region. Vietnam is a potential
competitor because it is not far away from Thailand.
Furthermore,
politics and pandemic have made it hard to organize events to stimulate
travel. “It is not only pricing but people need reasons to travel so we
have to create events. However, I have to postpone several events that
were initiated with partners because when it was close to the date,
something happened that caused cancellations.â
On the last note
concerning the future of Siem Riep Airways, Bangkok Airways continues to
serve Phnom Penh-Siem Riep route until Cambodia’s aviation standards
are certified by EU, Siem Riep Airways would return to the sky.Source: http://www.ttrweekly.com/site/index.php?id=138&tx_ttnews[tt_news]=1...
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