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Premium economy: Thai Airways considers joining the growing trend

Analysis

Thai Airways is evaluating the introduction of a premium economy product, which over the last few years has become more mainstream in the Southeast Asian market and globally. There are now over 12 full service airlines in Asia Pacific and over 20 FSCs globally offering premium economy.

Three Southeast Asian flag carriers have introduced premium economy over the past three years - Philippine Airlines (PAL), Singapore Airlines (SIA) and Vietnam Airlines. The Vietnam Airlines and PAL examples indicate there is a potential niche for premium economy in leisure markets. Thailand is primarily an inbound leisure market, although premium economy would help Thai Airways compete for sixth freedom corporate traffic.

Thai Airways is considering including a premium economy cabin on new widebody aircraft that it will soon order for delivery from late 2019 or 2020. Thai Airways is also considering fitting a premium economy cabin in the upcoming retrofit of its 777-200ER fleet.

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