TG non-stop flights to LAX/JFK in jeopardy?

Having lost five billion baht last year on its non-stop flights to the United States, executives at Thai Airways International (THAI) are scratching their heads over how to stem the losses.

The national carrier faces a difficult decision based on a few choices, none of which will likely bring the operation into the black.

The choices include terminating the services altogether, using stopovers in intermediate points, or changing to a more economical aircraft model.

See http://www.bangkokpost.com/Business/26Feb2007_biz38.php for full article.

Having lost five billion baht last year on its non-stop flights to the United States, executives at Thai Airways International (THAI) are scratching their heads over how to stem the losses.

The national carrier faces a difficult decision based on a few choices, none of which will likely bring the operation into the black.

The choices include terminating the services altogether, using stopovers in intermediate points, or changing to a more economical aircraft model.

See http://www.bangkokpost.com/Business/26Feb2007_biz38.php for full article.

Didn't I just read Thai was going to increase its days per week on the NY route?

Sounds like superblunders to me.

[CHAOTOU]

This comes despite a high cabin factor of 80-90% achieved on the flights.

So, the passengers are crammed in their seats on full planes, yet they still make no money. They sound like a U.S. carrier.

I too would swear that they were saying the route was doing well and they were expanding. Last week I read it. Oh well. I hope they can work it out.

[fedssocr]

yes, beginning in May the JFK route is scheduled to change to daily service and the LAX route is going to 6 days/wk. We'll see how long that lasts and whether or not they figure out a solution.

I guess the problem is that those A345's are configured to only hold about 200 passengers. So even at 80-90% load factor that is still not that many people. Even if the fares average $1100 or so it's really not all that much money by the time you buy all the fuel for that long flight and pay all of those crew members.

I suspect we will see them switch to daily service on a one-stop instead of keeping it non-stop and they will switch to a bigger aircraft. But that will make their service less attractive since one of its main selling points is the non-stop afternoon arrival from JFK.

There's a long thread on this over at flyertalk.com

yes, beginning in May the JFK route is scheduled to change to daily service and the LAX route is going to 6 days/wk. We'll see how long that lasts and whether or not they figure out a solution ... There's a long thread on this over at flyertalk.comWhile there are doubtless some people who feel comfortable with these long non-stop flights, I for one loathe them and look forward to getting out and stretching my legs every so often. Besides, TG's upgrade policy is generally fairly miserly. There's a single round-trip upgrade for those who fly at least 50K a year - and that's all you get even if you fly 150K. Other airlines give out the equivalent of 3 round-trip return upgrades at 100K and another 1 at 150K

TG's upgrade policy is generally fairly miserly.

And if you weren't so miserly yourself, you'd just buy yourself a biz class ticket and not rely on free upgrades. With all the money you've made over the years on investments, the fare should be a mere pittance.

Thai airways mistake was jumping the gun and buying those gas hog 4 engine airbus A340-500s instead of waiting for the 777LR. Now they are stuck with planes they could not possibly sell and recoup any of the money they spent on them. They are almost forced to continue these flights. That plane is useless on shorter routes.

Thai's mileage upgrades are about the same as EVA and most of the others. From 30,000 to 40,000 Frequent Flyer miles required PER LEG. For me, two r/t trips earns me an upgrade to Business which I use on the long leg of the trip (LA to BKK).

[fedssocr]

TG are fairly open with paid upgrades though. I bought an upgrade from Premium Economy to Buisness for $700 on my return BKK-JFK. The contractors at JFK seemed to have no idea what I was talking about when I asked them about buying an upgrade though. I understand you can even buy an upgrade on board, but then you will not get the mileage bonus for the higher class.

From today's Bangkok Post (sorry no URL, since I read it using the online PressReader software):

THAI could unload four new Airbus jets

Thai Airways International’s commerce department has asked the airline's board to sell its four brand-new A340-500 Airbus passenger jets.

THAI vice-president for commerce Wallop Bhukkanasut said the the four-engined jetliners consume a lot of fuel and offer limited seating capacity.

The proposed sale has put on hold a plan to next month add two more nonstop Bangkok-New York flights to the current five flights a week, he said.

The route is now served by Boeing 777-200LRs, twin-engined jets said to be more economical than the Airbus jets.

THAI has taken delivery of three of the A340-500s, the fourth to arrive next month.

I am flying this trip in April.
I called today and so far its the A340 - 550 jet that will be used
I looked on line and the 777 does not have as many business seats
So i hope they don't change and my seat is canceled i am using my miles

If accurate, I am crestfallen by such news. A related article indicates TG struck an agreement with South African Airways to purchase all four of TG's A-345's. One of TG's A-345 is just now rolling out of the new Airbus factory next week. No bus in the air experiences on the JFK/BKK flights. TG's service shines through on the JFK/BKK route. I would not hesitate to take the flight again and again provided it's in the offering.

[fedssocr]

That is too bad. The 777 has about 80 more seats overall than the 345 but only 30 in C and all the rest regular economy in 3-3-3 config. The 345 has 102 "premium" seats, 60 in C and 42 in premium economy. That's a lot of premium customers to potentially piss off by making them sit in economy. I suppose that does potentially mean more empty seats in the back of the plane though so people could have a bit more room that way.

Makes me glad that I booked my next trip on NH using my miles.

THAI AIRWAYS
Revises Flight Schedule Between the United States and Bangkok Starting MAY 1, 2007
Due to extenuating circumstances, THAI AIRWAYS INTERNATIONAL PCL is adjusting their flight schedule between Los Angeles and Bangkok and New York to Bangkok.


Starting May 1, 2007, passengers can enjoy the comfort of THAI's A340-500 with the new Royal Silk Class and Premium Economy Class five days per week between Los Angeles and Bangkok on MON / WED / FRI / SAT / SUN and five days per week between New York and Bangkok on MON / WED / THU / FRI / SAT.

The Revised flights schedule is as follows:

Between Los Angeles and Bangkok beginning 01 MAY 2007

Flight Nbr - - - Aircraft Type - - - - - - - - - Days of Operation - - - - - - - - - - - - Departs - - - - Arrives

TG 795 - - - - - A340-500 - - - - - - - MON / WED / FRI / SAT / SUN - - - - - - - LAX 2310 - - - BKK 0610+2
TG 794 - - - - - A340-500 - - - - - - - MON / WED / FRI / SAT / SUN - - - - - - - BKK 1940 - - - LAX 2110

Between New York and Bangkok beginning 01 MAY 2007

TG 791 - - - - A340-500 - - - - - - - MON / WED / THU / FRI / SAT - - - - - - - NYC 1200 - - - BKK 1610+1
TG 790 - - - - A340-500 - - - - - - - MON / WED / THU / FRI / SAT - - - - - - - BKK 0040 - - - NYC 0635

Call THAI AIRWAYS Reservations at 800-426-5202 for more information and to make your reservations or call your local travel agent today.

From the following it sounds to me like AB is avoiding issues of its commercial viability with things like "it depends on how full it is"? It doesn't take a boy genious to know that the number of passemgers times the $ per seat will affect the profits. It sounds to me like TG is finding things out, and they're not very good.

from: www.latimes.com/news/local/la-me-airbus ... -headlines (http://www.latimes.com/news/local/la-me-airbus18mar18,0,2878946.story?coll=la-home-headlines)




LAX expects A380's arrival to be huge
With the jet due to land Monday, officials are bracing for crowds not seen since the Concorde's debut.

...

Airbus says. The aircraft will offer airlines a 20% savings per seat over a 747-400, McArtor added. What's less clear is how full the flights will need to be to generate those savings, and whether airlines will pass them on to consumers.

...