Thai Airways faces challenging 2013 as competition within Asia increases

Thai Airways has returned to the black, posting a small profit for 2012 despite challenging conditions on its long-haul routes. The airline group plans to again focus growth in 2013 on short and medium-haul routes within Asia, where market conditions are generally more favourable. The group now includes three brands, including LCC affiliate Nok and regional hybrid unit Thai Smile - both of which are entirely focused on the fast-expanding Asian market.

But Thai Airways is also now facing challenges on routes within Asia as competition intensifies. Thai AirAsia is pursuing rapid expansion, putting pressure on Thai. Rapid growth at Nok and Thai Smile will help the Thai Airways Group compete against LCCs but Thai Airways will need to reduce costs and make adjustments in order to achieve sustainable profits.