ID :
135839
Mon, 08/02/2010 - 18:48
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http://m.oananews.org//node/135839
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Thai Airways, Singapore's Tiger Airways launching new budget carrier
BANGKOK, Aug 2 - National flag carrier Thai Airways International
(THAI) and Singapore's budget carrier Tiger Airways on Monday signed a Memorandum of Understanding to launch a new low-cost airlines 'Thai Tiger Airways'.
The agreement was signed by THAI president Piyasvasti Amranand and Tiger Airways group president and chief executive officer Tony Davis.
Mr Piyasvasti said Thai Tiger Airways will operate domestic and
international routes with a five-hour radius. Bangkok will be the gateway for South East Asia routes and Suvarnabhumi Airport will be an operational base.
The new venture, which has registered capital of 200 million baht ($6.2 million U.S. dollars), will procure five Airbus A-320s in 2011 and ten more in 2012 and will start operation in the first quarter of next year.
Ticketing is to be mainly online with a 92 per cent level of ticket sales to save the cost.
Thai Tiger Airways will compete with other low-cost airlines to seize
market share and seek income from new markets as well as to boost
Thailand's tourism and create an option for passengers.
The Thai Airways president said THAI lost more than 32 per cent of its market share to low-cost airlines. While it held 82 per cent of domestic aviation business seven years ago, currently it holds only 50 per cent.
THAI's market share for regional markets dropped from 42 per cent to 33 per cent in recent years.
Meanwhile, low-cost airlines grew rapidly from two per cent to 17 per
cent. Thai Airways must close the loophole before further losses to its rivals.
Thai Airways and its affiliated companies hold 51 per cent of the new
low-cost airline, while Tiger Airways Holding Company Ltd owns 49 per cent.
Mr Davis said Thai Tiger Airways focused on the regional market in Asia Pacific and will cover routes to northern Asia and India.
"I think Asia is a huge market for low cost airline. It's interesting that it's six times bigger than the European Union. Asia-Pacific has overtaken North America and Europe as the biggest air travel market in the world and I think it it would be naive for AirAsia or anyone else to think that they have a monopoly on local services in the region," said the Tiger Airways group president.
The low-cost model for air fares is likely to be the same as Tiger Airways in Australia at the average cost of around US$50 (about Bt1,700) per seat.
However, air fares are still under consideration but it will be a single rate for all seats, Mr Davis said.
Pathee Sarasin, low-cost carrier Nok Air's chief executive officer
said the launch of the new low-cost airlines Thai Tiger Airways will not have an impact on Nok Air but it will help transfer foreign passengers to use Nok Air domestic flight services.
He said Nok Air focuses on the domestic market. It planned to have new rental fleet of 12 new aircraft with 189 seats and 70 seats by the end of 2011. Seventy-seat aircraft will be used in destinations to small provinces such as Phrae, Nan, Roi Et and Chumpon.
Nok Air reaped net profits of Bt450 million from January to July while
advance ticket bookings in August account for 30 per cent, reflecting
improving domestic aviation businesses.
Budget airlines Thai AirAsia CEO Tassapon Bijleveld said the market will be highly competitive and it depends on marketing strategies of each airlines.
Thai AirAsia will overhaul its marketing strategies to compete with its rivals. It will offer the lowest air fares to maintain its customer base together with a good management system.
AirAsia has 100 aircraft, flying in a radius of 400 km and has ordered additional almost 200 aircraft for the next five years. It earns about Bt10 billion each year and 6.2 million passengers are expected to
use its services in 2010. It has targeted international flight service
since it started operations. (MCOT online news)
(THAI) and Singapore's budget carrier Tiger Airways on Monday signed a Memorandum of Understanding to launch a new low-cost airlines 'Thai Tiger Airways'.
The agreement was signed by THAI president Piyasvasti Amranand and Tiger Airways group president and chief executive officer Tony Davis.
Mr Piyasvasti said Thai Tiger Airways will operate domestic and
international routes with a five-hour radius. Bangkok will be the gateway for South East Asia routes and Suvarnabhumi Airport will be an operational base.
The new venture, which has registered capital of 200 million baht ($6.2 million U.S. dollars), will procure five Airbus A-320s in 2011 and ten more in 2012 and will start operation in the first quarter of next year.
Ticketing is to be mainly online with a 92 per cent level of ticket sales to save the cost.
Thai Tiger Airways will compete with other low-cost airlines to seize
market share and seek income from new markets as well as to boost
Thailand's tourism and create an option for passengers.
The Thai Airways president said THAI lost more than 32 per cent of its market share to low-cost airlines. While it held 82 per cent of domestic aviation business seven years ago, currently it holds only 50 per cent.
THAI's market share for regional markets dropped from 42 per cent to 33 per cent in recent years.
Meanwhile, low-cost airlines grew rapidly from two per cent to 17 per
cent. Thai Airways must close the loophole before further losses to its rivals.
Thai Airways and its affiliated companies hold 51 per cent of the new
low-cost airline, while Tiger Airways Holding Company Ltd owns 49 per cent.
Mr Davis said Thai Tiger Airways focused on the regional market in Asia Pacific and will cover routes to northern Asia and India.
"I think Asia is a huge market for low cost airline. It's interesting that it's six times bigger than the European Union. Asia-Pacific has overtaken North America and Europe as the biggest air travel market in the world and I think it it would be naive for AirAsia or anyone else to think that they have a monopoly on local services in the region," said the Tiger Airways group president.
The low-cost model for air fares is likely to be the same as Tiger Airways in Australia at the average cost of around US$50 (about Bt1,700) per seat.
However, air fares are still under consideration but it will be a single rate for all seats, Mr Davis said.
Pathee Sarasin, low-cost carrier Nok Air's chief executive officer
said the launch of the new low-cost airlines Thai Tiger Airways will not have an impact on Nok Air but it will help transfer foreign passengers to use Nok Air domestic flight services.
He said Nok Air focuses on the domestic market. It planned to have new rental fleet of 12 new aircraft with 189 seats and 70 seats by the end of 2011. Seventy-seat aircraft will be used in destinations to small provinces such as Phrae, Nan, Roi Et and Chumpon.
Nok Air reaped net profits of Bt450 million from January to July while
advance ticket bookings in August account for 30 per cent, reflecting
improving domestic aviation businesses.
Budget airlines Thai AirAsia CEO Tassapon Bijleveld said the market will be highly competitive and it depends on marketing strategies of each airlines.
Thai AirAsia will overhaul its marketing strategies to compete with its rivals. It will offer the lowest air fares to maintain its customer base together with a good management system.
AirAsia has 100 aircraft, flying in a radius of 400 km and has ordered additional almost 200 aircraft for the next five years. It earns about Bt10 billion each year and 6.2 million passengers are expected to
use its services in 2010. It has targeted international flight service
since it started operations. (MCOT online news)
