Thai Airways needs strategic rethink and network restructuring after dismal 2014

Thai Airways is considering further capacity cuts following a dismal 2014 when passenger numbers dropped by 17%. RPKs and load factors were down significantly across all regions with the domestic and regional international performance particularly weak as LCC competition intensified.

Thai has faced very challenging market conditions as international demand in Thailand plummeted due to a prolonged period of civil unrest, leading to a 7% drop in visitor arrivals in 2014. But it also faces long-term internal structural issues which can only be addressed through a major restructuring.

LCC competition in Thailand will continue to intensify in 2015. Thai's share of the domestic and international markets slipped significantly in 2014 and will drop further in 2015 with LCCs filling most of the void.