Thai Airways to reduce Phuket airfares
Thai Airways fares are coming down
Thai Airways International has reduced domestic air fares to Phuket by 15 percent between 15 March and 30 September “low” season to make it more competitive with low cost carriers [LCC] like Thai AirAsia and Nok Air.
THAI will, however, remain more expensive than such competitors. For example, its economy saver fare will be B6560 compared to B4877 for Thai AirAsia and B5344 for Nok Air but cheaper than boutique airline Bangkok Airways at B6590.
These air fares are the basic economy fares and include taxes and fees. The difference in price will vary according to the type of fare.
The fare reduction is in marked contrast to a 59 percent increase in fares in April, 2010 when THAI was experiencing considerable economic turbulence. The huge increase was also severely criticized by people in Phuket.
The change is recognition of the impact LCCs like Thai AirAsia have had on THAI, which is seeking to revamp its entire fleet and service with the goal of regaining its long lost position as one of the world’s top airlines.
THAI has an advantage over the other airlines because of its frequency. It flies 10 daily Bangkok-Phuket and 13 Phuket-Bangkok flights compared to Thai AirAsia’s eight daily flights and two for Nok Air. It also flies larger aircraft, often a four engined Boeing 747 Jumbo jet, which is an onward flight picking up transit passengers at Suvarnabhumi Airport in Bangkok. The other carriers fly smaller B737 or Airbus A320 aircraft.
At the same time as THAI is attacking it, Thai AirAsia has also announced plans to buy 20 new aircraft and develop Phuket as a domestic and international hub. The airline plans to expand its network to Laos, the Philippines and India.
Phuket is already Thai AirAsia’s second hub after Bangkok.
I wonder how much sense this makes in light of Thai Airways announcement that they will form a new low cost airline to compete directly with the likes of Air Asia. Seems they should keep THAI rates a little higher and preserve the brand while going for cut rate prices at their new division.
. Thanks for your comment. You are quite right but the THAI story was written well before they announced the planned new LCC [ if it happens]. If it does only good for Phuket as BKK-Phuket bound to be the first route they go on. Nok Air service to Phuket not good. Main thing is that there will be more choices. Alastair Carthew.