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THAI Confident of Success of New Service to South Africa

Posted on: Saturday, 3 June 2006, 03:00 CDT

By Boonsong Kositchotethana, Bangkok Post, Thailand

Jun. 2--Thai Airways International acknowledges that its new Bangkok-Johannesburg non-stop service will be a calculated risk, but remains hopeful that the new route will show profits and help build the national carrier's global network.

At worst, THAI estimates it could lose 40 million to 50 million baht in its first year of operation for the new route, to be launched in October.

The airline's management received support from the company's board to launch the long-haul service, which had been delayed for a year.

Vasing Kittikul, THAI's executive vice-president for commercial affairs, saw little risk of the Bangkok-Johannesburg route failing financially.

"We have thoroughly studied the route and came to the conclusion that it has strong potential to succeed due to its good [traffic] catchment area ," he told the Bangkok Post.

The airline expects to see initial cabin occupancy of 50 percent to 60 percent on the route, rising to 71-72 percent within six months.

To break even, the airline was required to achieve cabin occupancy of 62-63 percent, according to Mr Vasing.

THAI will offer three flights a week on the new 11-hour route, using new Boeing 777-200ER jetliners capable of carrying 292 passengers.

The airline hopes to tap the growing tourism and commerce exchange between the two countries, as well as travellers from other countries on connecting THAI flights to South Africa.

Around 12,000-15,000 Thais travel to South Africa each year, mostly for pleasure, while South Africans visiting Thailand number around 60,0000 a year.

The airline expects 75 percent to 80 percent of its passengers on the route to be tourists and 20 percent business travellers.

The Bangkok-Johannesburg route is the only new long-haul route which the airline has committed to since its Bangkok-Moscow flight.

THAI is the fourth airline in the region to operate from South Africa's most commercially important city, along with Cathay Pacific, Singapore Airlines and Malaysian Airlines.

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Copyright (c) 2006, Bangkok Post, Thailand

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TAWNF,

Source: Bangkok Post

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