Thai Airways stated it reported a worse than expected net loss of USD158.2 million for the three months ended 30-Jun-2009, up from the USD27.1 million loss in the previous corresponding period – attributable to foreign exchange losses and falling passenger numbers, due to political unrest in the country and the swine flu epidemic (Reuters, 13-Aug-2009).
Thai Airways reports worse than expected 2Q2009 net loss
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Thai Airways Outlook Part 3: new five-year plan to result in more orders, potentially faster growth
The Thai Airways Group is determining a growth rate and assessing its aircraft needs for the medium to long term as part of a new five-year plan. The new plan should be completed by mid-2017 and may result in new narrowbody and widebody aircraft orders by the end of 2017.
Thai Airways is at an important juncture with its fleet as it has only 12 outstanding aircraft orders, all of which will be delivered in 2017 and 2018. The group currently does not have any commitments for additional narrowbody aircraft, which are needed to continue pursuing regional international growth at its full service subsidiary Thai Smile in line with its current multi-brand strategy.
New widebody aircraft are also required for growth and replacements, starting with its ageing 747-400 fleet. The group’s widebody passenger fleet will increase from 72 to 77 aircraft by the end of 2017, partially offsetting recent reductions in the fleet.
Thai Airways Group outlook Part 2: Thai Smile to pursue more regional international expansion
The Thai Airways Group is planning further expansion of its regional network in 2017 using its full service subsidiary Thai Smile. Thai Smile has launched or resumed services to eight international destinations in 2017 and is considering the addition of several new destinations in 2017 across Southeast Asia, India and China.
The expansion of the Thai Smile regional international network is critical as Thai Airways expands in Europe. The group’s new strategy relies heavily on increased feed to its Australia, Europe and future North American operation by adding secondary destinations and improving connectivity.
This is the second part of an analysis report on the Thai Airways Group. In the first part CAPA focused on Thai’s long haul operation, in particular expansion plans for Europe. In this part CAPA will examine the outlook and plan for the group’s regional operation, including Thai Smile.