Major Airlines To Cut Long-haul Flights To Thailand

[LaaMok]

Major Airlines To Cut Long-haul Flights To Thailand

 

 

Airlines to cut long-haul flights to Thailand next year

 

BANGKOK: -- Several major airlines including Thai Airways International are cutting long-haul flights into Thailand next year in line with a forecast 12-per-cent drop in the number of inbound tourists, said the Association of Thai Travel Agents.

 

ATTA president Apichart Sankary said that although the Tourism Authority of Thailand targets 17 million visitors next year, only 15 million may arrive.

 

Starting from today, THAI will suspend its New York-Bangkok service. The company has also reduced flight frequencies, re-routed flights with particular impact on its US operations and introduced other cost-cutting measures.

 

"Other airlines such as Lufthansa are also considering reducing long-haul flights between Thailand and Europe," said Apichart.

 

Thailand is expected to miss this year's visitor target of 15.7 million. ATTA, which encompasses inbound travel agencies, expects the number to reach only 15 million.

 

While domestic tourism will be more sluggish than last year due to political conflict, Apichart attributed the lower number of foreign visitors to efforts in Europe and the United States to lure tourists from the Middle East.

 

Maitree Narukhatpichai, president of Phuket Tourism Association, admitted that foreign tourists' bookings for the island this month had dropped 15-20 per cent from last year's level due to political tensions, which were driving away visitors from major markets.

 

Seni Phuwasethavorn, president of the Koh Samui Tourism Business Association, said the high season would not be as active as last year due to the higher cost of travelling.

 

For instance, the ferry fare from Surat Thani to the island will soon be increased by 20 per cent. Currently, Samui's hotel occupancy rate is at 60 per cent, down from 70-80 per cent in the same period last year.

 

-- The Nation 2008-06-30

[caltexman]

Yeah thanks bryan for such a post.............if they cut flights to thailand from aussie i'm just gonna get as many aussie bms together and hire a fucking boat .......................will get there some how, no fucking way i'm not going back to LOS!!!!!!!!!!!!!!!!!

[Panudate]

We'll all get canoe's from the UK and have a race to get there!

[caltexman]

australias closer mate we will give you a head start just because we aussie beat you poms at everything..............lol

[Lok Jit]

Bryan---Your like me now~~~AN X PAT~~~We live here.....

[sybarite]

The airlines know that most people are not going to be able to afford to travel if they pass on the full effects of the oil price rise to their customers.

 

People will just decide to forgo their usual holidays.

 

So, the only other option for the airlines to keep the same profits as before is to cut costs which means cutting the number of flights.

 

The upshot is that flights will sell out much more quickly than before and the airlines can charge what they like for the few seats that remain unsold.

 

Getting flights last minute will no longer be an option

[Laawman]

On my first trips out here, Thai only flew twice a week. Looks like it's coming round full circle.

[LaaMok]

Bryan---Your like me now~~~AN X PAT~~~We live here.....

 

Yes but it effects me also, less tourists less work!

 

Plus my brothers wife is having a baby, and I need to go home for a holiday and visit before silly season. i.e october before flight prices go mad!

[altec123]

Sucks now for those of us on the east coast of the US now. I loved the JFK to BKK flight. Now the best way for me to go from Washington is to fly All Nippon Airlines to Tokyo and then take a flight to BKK after a three hour layover. Basicly it is 24 plus hours of traveling from my door to Pattaya.

[MrDK]

The airlines know that most people are not going to be able to afford to travel if they pass on the full effects of the oil price rise to their customers.

 

People will just decide to forgo their usual holidays.

 

So, the only other option for the airlines to keep the same profits as before is to cut costs which means cutting the number of flights.

 

The upshot is that flights will sell out much more quickly than before and the airlines can charge what they like for the few seats that remain unsold.

 

Getting flights last minute will no longer be an option

Your theory is right, but there are two sides to the coin.

You are right in that the airlines cut flights to increase utilization and consequently profit.

 

Don't forget though that competition still exists and if all flights are near 100% full, then there is more money to be made by increasing the number of flights. There is a sweet spot for the airlines in terms of capacity.

 

If the number of travelers decrease by 15% and the overall seat capacity is reduced by the same amount then (fuel cost not withstanding) the cost of a passenger mile will remain the same and competitive fares can be preserved. Again, not considering the necessary increases due to increased fuel cost.

The fuel cost used to be 15% of the flight cost, now it is 40%. so there must be some increase in prices.

 

Besides passenger revenue, remember that the airlines have many other sources of income. Freight is one of them. A good part of the luggage hold is actually paid cargo. As an example, in the early 90's when the American Airlines flight attendants were on strike, most domestics flights flew as scheduled, transporting only freight and mainly US mail. American Airlines almost broke even doing this and most importantly kept their valued cargo contracts in place.

 

As far as I see it; if the number of passengers decline by 15% it is a good think for both the airlines and the consumer that capacity is reduced by the same amount.

[gbeave]

Major Airlines To Cut Long-haul Flights To Thailand

 

 

Airlines to cut long-haul flights to Thailand next year

 

BANGKOK: -- Several major airlines including Thai Airways International are cutting long-haul flights into Thailand next year in line with a forecast 12-per-cent drop in the number of inbound tourists, said the Association of Thai Travel Agents.

 

ATTA president Apichart Sankary said that although the Tourism Authority of Thailand targets 17 million visitors next year, only 15 million may arrive.

 

Starting from today, THAI will suspend its New York-Bangkok service. The company has also reduced flight frequencies, re-routed flights with particular impact on its US operations and introduced other cost-cutting measures.

 

"Other airlines such as Lufthansa are also considering reducing long-haul flights between Thailand and Europe," said Apichart.

 

Thailand is expected to miss this year's visitor target of 15.7 million. ATTA, which encompasses inbound travel agencies, expects the number to reach only 15 million.

 

While domestic tourism will be more sluggish than last year due to political conflict, Apichart attributed the lower number of foreign visitors to efforts in Europe and the United States to lure tourists from the Middle East.

 

Maitree Narukhatpichai, president of Phuket Tourism Association, admitted that foreign tourists' bookings for the island this month had dropped 15-20 per cent from last year's level due to political tensions, which were driving away visitors from major markets.

 

Seni Phuwasethavorn, president of the Koh Samui Tourism Business Association, said the high season would not be as active as last year due to the higher cost of travelling.

 

For instance, the ferry fare from Surat Thani to the island will soon be increased by 20 per cent. Currently, Samui's hotel occupancy rate is at 60 per cent, down from 70-80 per cent in the same period last year.

 

-- The Nation 2008-06-30

Thanks for the post

[bige43]

Sucks now for those of us on the east coast of the US now. I loved the JFK to BKK flight. Now the best way for me to go from Washington is to fly All Nippon Airlines to Tokyo and then take a flight to BKK after a three hour layover. Basicly it is 24 plus hours of traveling from my door to Pattaya.

You got that right. There price for ANA PE is fucking ridiculous at $3300.00

Trying to fit my big ass in a coach seat for 14 hours is not gonna happen. This oil shit has got to stop, not just for Thai air but for all travelers having to take a plane. What will they charge for next, breathing air.

 

Bige