Poltical violence costs Thai Airways USD92m in May-2010
Thai Airways President, Piyasvasti Amranand, stated the recent political violence in Bangkok cost the carrier USD92 million in May-2010 (Bangkok Post, 09-Jun-2010). Load factor for the month was only 58%, short of its 65% break-even target. Mr Piyasvasti stated that as 70% of its passengers are bound for Thailand, any factors that affect travel decisions on an international scale cause a vulnerability in bookings. The closure of European airspace due to volcanic ash cloud meanwhile cost Thai more than USD18.4 million. Mr Piyasvasti stated that as a result of the two factors, the carrier is now likely to post a loss for 2Q2010. He expects its traffic recovery strategies, including a decentralising of traffic flows throughout the network rather than the majority operating through Thailand, will soften the decline in traffic. Mr Piyasvasti has been in London talking with international institutional investors to revive confidence in Thai’s shares and outlook.
Thai Airways: “The overall impacts we have had this year were far worse than last year's global economic recession and others such as the April 2009 riots or the H1N1 flu outbreak … I think these investors are more prepared to understand our situation than ordinary people as we told them what are going to do next [to mitigate the fallout and risks],” Piyasvasti Amranand, President. Source: Bangkok Post, 09-Jun-2010.