Thai Airways

[azza33]

HIGH fuel costs have battered Thailand's aviation industry, leaving flag carrier Thai Airways groaning under its losses while smaller operators struggle to survive

Oil prices jumped above 147 dollars per barrel on July 11. They have since fallen but remain volatile, casting a cloud over an industry that had seen a fleet of new players taking off.

Thai Airways International blamed fuel costs, as well as a massive foreign exchange loss, for its 9.23 billion baht ($274.3 million) loss in the second quarter - its worst quarterly showing in a decade.

The airline's shares have lost half their value since March, plunging from 31.50 baht to 15.20 baht on Friday.

"The main reason was the sharp rise in the price of jet fuel by 73 percent, causing the company's fuel costs to rise sharply,'' Ngamnit Sombutpibool, the airline's vice president of accounting, said in a statement.

The airline, majority owned by the government, has repeatedly hiked its fuel surcharge and plans to ask 400 staffers to take voluntary retirement, while trimming back its fuel-intensive long-haul flights, cancelling its direct flight to New York and making changes to its Los Angeles service.

[robbo]

and to think that some guys here think that thailand is immune to world economics

[pure]

Thai airlines will no longer have a direct flight from LAX to BKK or BKK to LAX as of October 26, 2008. That flight will now have a stop over in Japan. Plus the flight times have changed. This will be good for some, not for others.

[Road Runner]

My bet is that Thai Airways will not be the only ones that will do some pruning over the next 6-12 months.

Most carriers are feeling the pinch at the moment.

RR.

[manarak]

on the other hand that also means that we will get more of those new A340 instead of the uncomfortable 747s (because A340 use less fuel).

[Road Runner]

  Maybe not as some airlines have already cancelled the options they had on A340's

They obviously figure that they are better off runnng older less efficient 747's than spending millions on new aircraft.

Interestingly the 747 was first released to the airlines just before a major hike in oil prices so who knows the A340 may still do well.
Personally I hope it does as it looks like a good aircraft and it is a couple of generations ahead of the Jumbo.

RR.

[mirimark]

spinich, eggs, onions and Hot sausce. Yummy.

[mirimark]

damn that was hot.  FLipp'n  wooooooo. sweating my ass off

Tapotio.

[bkkafterdark]

Anyone planning a trip to phuket from BKK needs to book ahead as "Nok air" and "one two go" are no long operating to phuket at the moment..... i travel everyweek to phuket and many thai airways flights are booked or only full price tickets available. Air Asia still good price but often have delays.

[kahuna]

(mirimark @ Aug. 25 2008,10:01) spinich, eggs, onions and Hot sausce.   Yummy.

Are you certain it was spinach you added...

You're supposed to eat it not smoke it...

[stogie bear]

(robbo @ Aug. 24 2008,21:19) and to think that some guys here think that thailand is immune to world economics

I don't think that anyone thinks that Thailand is 'immune' to world economics.

But it's true that most expats who live here are.

[Looker]

Sure, SB, most expats living anywhere, not just Asia, are immune to the ups and downs of worldwide economies.

Especially if working for a corporation with an (almost) tax-free salary 4 times of that in your own country, paid rent and car, paid trips home and other benefits. How could you complain.

But I'm not one of them

[SukhumvitRoad]

(azza33 @ Aug. 24 2008,22:50) "The main reason was the sharp rise in the price of jet fuel by 73 percent...."

The real main reason is that the first criterion of employment at TG is the purity of the applicants Thai blood and his family's connections to whichever fuckwit farmer might happen to be in power at the moment.

By happy contrast, Cathay Pacific and Singapore are real companies. They hire the best airline executives they can find, regardless of their national origins, and look at the results. You can't work for our local laughing stock of an airline unless you are a real Thai, which means that you have one group of ignorant, inexperienced provincials hiring only other Thai people who are even dumber than they are. And, wouldn't you know it, finding yet dumber and dumber people among local Thais is never much of a challenge.

[allstar88]

thai airways 747 are crap old planes with old enterainment  systems  and the stewards are thick and grumpy having said that ive always been on time with them

[azza33]

By happy contrast, Cathay Pacific and Singapore are real companies. They hire the best airline executives they can find, regardless of their national origins, and look at the results.

Perhaps they exercise 1st degree price discrimination a little better than Thai and fuck over whoever is stupid enough to pay their high prices