Thai Airways Part 2: commercial strategy to focus on more transit traffic, including Australia-EU

Thai Airways is implementing a new commercial strategy which focusses more on transit traffic and seeks to boost load factors and yield. Thai is particularly targetting the kangaroo route between Australia and Europe, seeing an opportunity to regain market share as other Asian airlines reduce their focus on Australia.

Thai Airways is also planning to pursue regional growth within Asia as its full service short haul subsidiary Thai Smile expands its international operation and improves aircraft utilisation. Thai Smile will play an important role in boosting network connectivity for the group's long haul to short haul connecting traffic such as Australia or Europe to Asia along with more intercontinental connecting traffic in markets like Australia-Europe.

This is Part 2 in a two-part series of analysis reports on Thai Airways. The first part focussed on changes to Thai's fleet plan, in particular its decision to delay 747-400 retirements, and upcoming capacity increase to Europe.