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ScanFlyer Crusty
Denne er hentet fra dagens Bangkok Post.
Tydelig at oppstikkerene i Asia sliter litt med inntjeningen.
Interessant å se at One-Two-Go ser muligheter for å fly til Skandinavia. Synd at OSL ikke er nevnt ..
Cheap fares far 'too low' for survival
Udom: Nok Air may have edge
One-Two-Go chief warns of backlash
NONDHANADA INTARAKOMALYASUT
Guangzhou _ Budget airlines in Thailand could be on the verge of collapsing if operators continue to offer unrealistic airfares to consumers, according to a local airline executive.
Udom Tantiprasongchai, chief executive officer of One-Two-Go, the country's first low-cost airline, said the pricing structure of local budget airlines had been wrecked by the offering of super-low fares that were far below the actual cost.
He said it cost about 1,400 baht per passenger per trip to fly from one province to another in Thailand.
"I don't believe airlines that offer lower airfares than 1,400 baht a trip can make a profit. In fact, I think they are losing a lot of money each and every day, especially with the skyrocketing fuel prices."
He estimated that Thai AirAsia, a joint venture between Malaysia's AirAsia and Shin Corp, is losing about two to three million baht per day, considering its average airfares and seats being sold.
Currently, Thai AirAsia is offering air tickets for between 500 and 1,500 baht per trip.
"I don't like being dishonest and boasting that we're [One-Two-Go] profitable when we're not, as the business belongs to me. My competitors may say whatever they like because they can raise additional money from the state-run shareholders or the public."
He said AirAsia was trying to present itself as a profitable airline since it was in the process of being listed on the Malaysian stock exchange and that it was offering cutthroat fares only for cashflow purposes.
At the same time, Thai consumers have been spoiled by low fares and would be reluctant to use no-frills carriers if they raised their to prices to match actual costs.
"In the long run, no budget airline will be able to survive in Thailand. Nok Air may have a bit more staying power because it is backed by Thai Airways but if it continues to copy AirAsia's strategy, it will end up in trouble as well," he said.
Thai AirAsia executives Tassapol Bijleveld and Tony Fernandez could not be contacted but they said earlier that their business was on target.
One-To-Go is running at a loss on most of its domestic routes but can stay afloat on the back of revenue generated by its parent company, Orient Thai Airlines, which operates international scheduled services and chartered flights overseas.
Mr Udom also said that One-Two-Go had the largest market share among the three low-cost airlines in Thailand because of its larger aircraft.
Based on the number of tickets sold in August, One-Two-Go had a 53% market share while Thai AirAsia's and Nok Air's shares stood at 35% and 12%, respectively, according to Mr Udom.
Thai AirAsia, which started its operation in February, plans to carry 1.2 million passengers this year while One-Two-Go, which became operational two months earlier, aims to fly 1.5 million passengers in 2004.
Last Wednesday, Orient Thai Airlines launched its inaugural flight from Bangkok to Guangzhou as part of its bid to break into the fast-growing Chinese air travel market.
The airline chose Guangzhou because of the continuously increasing purchasing power of the booming city's 12-million citizens.
It plans to add flights to Shanghai and Beijing later this year.
The airline uses a Boeing 747 for the daily Bangkok-Guangzhou flight. It expects the route to run at an 80% load factor and will rely on travel agents in China for ticket sales.
One-Two-Go is also planning to lease two more aircraft _ a Boeing 747 and a Boeing 757 _ to offer more charter flights to high-potential European cities including Stockholm, Copenhagen, Frankfurt, Berlin and Budapest.
Tydelig at oppstikkerene i Asia sliter litt med inntjeningen.
Interessant å se at One-Two-Go ser muligheter for å fly til Skandinavia. Synd at OSL ikke er nevnt ..
Cheap fares far 'too low' for survival
Udom: Nok Air may have edge
One-Two-Go chief warns of backlash
NONDHANADA INTARAKOMALYASUT
Guangzhou _ Budget airlines in Thailand could be on the verge of collapsing if operators continue to offer unrealistic airfares to consumers, according to a local airline executive.
Udom Tantiprasongchai, chief executive officer of One-Two-Go, the country's first low-cost airline, said the pricing structure of local budget airlines had been wrecked by the offering of super-low fares that were far below the actual cost.
He said it cost about 1,400 baht per passenger per trip to fly from one province to another in Thailand.
"I don't believe airlines that offer lower airfares than 1,400 baht a trip can make a profit. In fact, I think they are losing a lot of money each and every day, especially with the skyrocketing fuel prices."
He estimated that Thai AirAsia, a joint venture between Malaysia's AirAsia and Shin Corp, is losing about two to three million baht per day, considering its average airfares and seats being sold.
Currently, Thai AirAsia is offering air tickets for between 500 and 1,500 baht per trip.
"I don't like being dishonest and boasting that we're [One-Two-Go] profitable when we're not, as the business belongs to me. My competitors may say whatever they like because they can raise additional money from the state-run shareholders or the public."
He said AirAsia was trying to present itself as a profitable airline since it was in the process of being listed on the Malaysian stock exchange and that it was offering cutthroat fares only for cashflow purposes.
At the same time, Thai consumers have been spoiled by low fares and would be reluctant to use no-frills carriers if they raised their to prices to match actual costs.
"In the long run, no budget airline will be able to survive in Thailand. Nok Air may have a bit more staying power because it is backed by Thai Airways but if it continues to copy AirAsia's strategy, it will end up in trouble as well," he said.
Thai AirAsia executives Tassapol Bijleveld and Tony Fernandez could not be contacted but they said earlier that their business was on target.
One-To-Go is running at a loss on most of its domestic routes but can stay afloat on the back of revenue generated by its parent company, Orient Thai Airlines, which operates international scheduled services and chartered flights overseas.
Mr Udom also said that One-Two-Go had the largest market share among the three low-cost airlines in Thailand because of its larger aircraft.
Based on the number of tickets sold in August, One-Two-Go had a 53% market share while Thai AirAsia's and Nok Air's shares stood at 35% and 12%, respectively, according to Mr Udom.
Thai AirAsia, which started its operation in February, plans to carry 1.2 million passengers this year while One-Two-Go, which became operational two months earlier, aims to fly 1.5 million passengers in 2004.
Last Wednesday, Orient Thai Airlines launched its inaugural flight from Bangkok to Guangzhou as part of its bid to break into the fast-growing Chinese air travel market.
The airline chose Guangzhou because of the continuously increasing purchasing power of the booming city's 12-million citizens.
It plans to add flights to Shanghai and Beijing later this year.
The airline uses a Boeing 747 for the daily Bangkok-Guangzhou flight. It expects the route to run at an 80% load factor and will rely on travel agents in China for ticket sales.
One-Two-Go is also planning to lease two more aircraft _ a Boeing 747 and a Boeing 757 _ to offer more charter flights to high-potential European cities including Stockholm, Copenhagen, Frankfurt, Berlin and Budapest.
