Airline News
THAI Cargo exits, Thai VietJet launches
March 30th 2015
Thai Airways International (THAI) has ended all freighter operations, with the last B747-400BCF, servicing the Bangkok – Delhi – Frankfurt – Amsterdam – Bangkok route on March 29. Read More » The move is in direct contrast to Cathay Pacific Cargo, which continues to invest heavily in its freighter business. James Woodrow, Cathay’s director cargo, last September said rivals’ decisions to withdraw from freighters would put the Hong Kong carrier in a good position. “We have seen a bit of a shake-out, with some operators like THAI and IAG pulling out, and others such as Singapore Airlines and AF-KLM not re-investing. And if you don’t re-invest, you won’t be in this business long-term. You need to have modern equipment. Others will pull out, so at some point we will have a relatively scarce resource.”
Despite the discontinuation of the freighter business, THAI’s chief, Charamporn Jotikasthira expects the 55-year-old carrier to report more losses this year due to higher rehabilitation costs, which include cutting operating costs and capacity by 20%, selling and retiring up to 44 older aircraft whilst acquiring more efficient new frames, and sending up to a quarter of its 25,000 staff into voluntary early retirement - with appropriate severance packages. THAI, 51% owned by the country’s finance ministry, has a debt of $5.9 billion, the highest among Southeast Asian airlines, according to Reuters data.
Vietnamese low-cost carrier (LCC) VietJet Air’s first subsidiary, Thai VietJet Air, will begin operations with a Bangkok-Phuket service on March 29. It originally planned to launch from Bangkok’s Suvarnabhumi, but opted for cheaper Don Mueang airport. With an initial fleet of four A320-200s, the new subsidiary plans to extend services to Krabi and Udon Thani, as well as Hanoi and Ho Chi Minh, later this year.
