INDUSTRY NEWS - 4th Civil Aviation SE Asia Summit 2019 -

Airlines ride high on tourism boom

2018-05-16

EARNINGS posted by some of the country’s listed airlines point to a recovery in Thailand’s aviation industry in the first quarter of this year, including double-digit gains by pacesetter Bangkok Airways, amid a boom in tourist arrivals.
Bucking the trend is Thai Airways International Plc, which yesterday reported that net profit slumped 13.96 per cent to Bt2.71 billion from the same quarter of last year. But overall, the gains mesh with a healthy picture for the aviation industry in the Asia Pacific region, which enjoyed a 9 per cent increase in passenger numbers from the year-earlier quarter. This outstripped the 7.2 per cent rise for the global market over that time, the International Air Transport Association said.
The number of visitors to Thailand increased 15.4 per cent from the same period of last year, the Tourism and Sports Ministry said. These factors boosted the financial performance of Thai airlines for the year’s opening quarter, representing strong growth from the year-earlier period.
Bangkok Airways Plc reported to the Stock Exchange of Thailand yesterday that the number of passengers it carried rose 8.4 per cent from the same quarter in 2017. International passengers accounted for 56 per cent of the total. The increase reflects the extra business from a number of code-share agreements the carrier has struck with partners. The company also added more routes to serve customer demand for new destinations. This resulted in increases in the number of passengers it flew and the load factor it achieved. With the rising passenger numbers and load factor, the reported total revenue of Bt7.83 billion and net profit of Bt719.3 million, up 4.8 per cent and 27.3 per cent, respectively, from the same period of last year. Asia Aviation Plc (AAV), a major shareholder of Thai AirAsia Co Ltd (TAA), reported total revenue for the three months of Bt11.64 billion and net profit of Bt1 billion. For TAA, the same total revenue was booked, but its net profit was higher – at a record Bt1.83 billion for the carrier. TAA achieved a load factor of 91 per cent, up 2 percentage points from the prior corresponding period. It carried 5.64 million passengers, up 16 per cent, shading the 15 per cent growth recorded for seat capacity. Asia Aviation Plc chief executive officer Tassapon Bijleveld said recently that TAA saw continued growth in the first quarter of this year, mainly due to its enthusiastic work in the domestic market, especially in the secondary provinces in support of the government's tourism promotion policies. Thai AirAsia started operating seven new routes during the quarter: from Bangkok (Don Mueang) to Ranong, Johor Bahru, Chengdu and Chumphon; from Phuket to Macau and Kunming; and from Chiang Mai to Udon Thani. It also increased flight frequencies on 12 routes from Bangkok (Don Mueang) and Pattaya (U-Tapao), while Bangkok (Don Mueang) to Tiruchirappalli, Chiang Mai to Ubon Ratchathani and Ubon Ratchathani to Pattaya (U-Tapao) were suspended as a result of what the firm called route revenue and capacity management. For the second quarter of 2018, Tassapon said TAA would increase flight frequencies on popular routes. For 2018, it aims to serve 23.2 million passengers, maintain a load factor at 87 per cent and add seven aircraft to bring its fleet to 63. This would ensure another strong performance and returns for this quarter. Nok Airways Plc narrowed its losses in the first quarter from the same period of last year, booking a net loss of Bt26.88 million. That compares with a net loss of Bt295.57 million in the first quarter of 2017. Nok Airways chief executive officer Piya Yodmani said the company’s revenue grew 5.6 per cent from the same quarter of last year to Bt4.32 billion as the average cost per seat declined, cabin factor improved and more passengers were carried, despite the rise in fuel costs. “The result is better than expected and it clearly shows that our business turnaround plan has continued to bear fruit and the company is on the right course,” Piya said.
THAI takes delivery of final A350, for now

2018-05-11

Thai Airways International (THAI) has taken delivery of its twelfth and final A350-900. It entered revenue service this week. The airline received its first A350 in August 2016. THAI has no additional widebody aircraft on order from Airbus and Boeing, but that is bound to change.

The state-controlled airline is due for a widebody order and Orient Aviation understands that more A350s, but also more B787s, will join the carrier’s fleet. THAI is replacing older B777s, B747s and A330 with A350s on flights to Australia, Europe, the Middle East and on regional services particularly to Japan.
THAI operates six A380s, 12 A350s, 10 B747-400s, 32 B777s, 15 A330-300s, six B787-8s and two B787-9s. Some of its B787s, including its first -9, remain grounded because of Rolls-Royce Trent 1000 issues. The airline’s Thai Smile subsidiary has 20 A320ceo.
Vietnam Airlines agrees MRO JV with ST Aerospace

2018-05-04

Vietnam Airlines has signed a Memorandum of Understanding (MOU) with ST Aerospace for a component MRO solutions joint venture (JV).

The two firms also have agreed a 14-year component Maintenance-By-the-Hour (MBH) for the airline’s 58 A321ceo and 20 incoming A321neo in component maintenance beginning mid-year. Under the MBH contract, ST Aerospace will set up an inventory base in Vietnam to provide timely services to the airline.

The JV will be based at Noi Bai International Airport and initially will offer pneumatics, hydraulics and electrical components support and will then consider commencement of aerostructure and airframe MRO.

“We are happy that Vietnam Airlines has decided to entrust their A321ceo and A321neo fleets to us for component support, and even more so by the prospect of deepening our partnership with the exploration of a joint venture. The robust development of the economy and a burgeoning middle class have created an ideal environment for the growth of the aviation industry in the Asia Pacific region, and Vietnam’s double-digit growth in the air travel sector is the best reflection of this,” said ST Aerospace president, Lim Serh Ghee.
“We are delighted to partner with ST Aerospace to establish a joint venture as well as to provide MRO support for the A321 aircraft family, which is the majority of our fleet. This partnership not only improves our fleet efficiency and world-class service quality, but also represent a major step forward for Vietnam’s aviation industry in general, contributing to the boost of bilateral economic, trade and aviation relations between Vietnam and Singapore,” said Vietnam Airlines EVP, Dang Ngoc Hoa.
Runway sensations

2018-04-30

Airports in every corner of Thailand will enjoy renovation and expansion as part of efforts to boost travel to secondary provinces

The government's plan to spend more than 38 billion baht to renovate and expand 29 airports nationwide is a big step towards improving infrastructure, boosting air traffic in secondary provinces and strengthening local tourism business.

The investment will also give airlines a chance to expand their networks and let private jet firms extend more options to high-end travellers.

Airports Department director-general Darun Sangchai said the department has held discussions with Thai Airways International (THAI), Nok Air, Thai Lion Air, Thai AirAsia, THAI Smile and Bangkok Airways about airport expansions.

"We will renovate or expand 29 airports over the next 9-10 years under a budget of more than 38 billion baht," Mr Darun said.

The plan is aimed at increasing air travel capacity, enhancing connectivity among secondary provinces and linking small cities with the capital and other major tourist spots in Thailand and Southeast Asia.

The airport expansions are in line with the government's goal of boosting tourism in 55 secondary provinces by offering tax breaks of up to 15,000 baht for tourism spending made during trips to those provinces this year.

While the Tourism Authority of Thailand estimates that the tax campaign could draw at least 10 million visitors to the 55 provinces this year, the Airports Department also expects the scheme to spur use of domestic airports.

Airports that will see expansion include those in Krabi, Khon Kaen, Surat Thani, Ubon Ratchathani and Phitsanulok. Once the expansions are completed, these airports will have the capability to accommodate large aircraft such as the Boeing 747.

Some 29 airports will be improved to serve medium-sized aeroplanes, including in Lampang, Hua Hin and Ranong.

The department is currently expanding Mae Sot airport in Tak province, to be completed in 2019. In the South, Betong airport in Yala is under construction.

Airline operators are upbeat about expanding their networks into secondary provinces and plan to add new links such as Udon Thani-Chiang Mai and Ubon Ratchathani-Phuket, while using U-tapao airport as a new hub to connect with other provinces and overseas destinations.

Some airlines are also mulling whether to add commercial flights to Pattani, Tak and Chumphon provinces, Mr Darun said.

He said the department has encouraged investors to finance a private jet airport not far from Bangkok, perhaps in Nakhon Pathom, to capitalise on the growing high-end market.

Thai AirAsia sees the airport expansions as a great business opportunity. The budget airline vows to operate at all airports and take a lead role in booming domestic tourism.

Tassapon Bijleveld, chief executive of Thai AirAsia, said many provinces can be promoted as new hubs to link with neighbouring countries, especially the CLMV group (Cambodia, Laos, Myanmar, Vietnam).

Thai AirAsia operates at nearly every airport in the country, save for those in Hua Hin, Nakhon Ratchasima and Phetchabun.

Mr Tassapon has advised governments in Southeast Asia to endorse a single visa to attract more visitors.

One of the crucial projects in the government's much-touted Eastern Economic Corridor (EEC) is to pour 236 billion baht over the next five years into developing U-tapao airport and linking it with Suvarnabhumi and Don Mueang airports via high-speed rail. The effort is part of a push to make Thailand an international aviation hub.

The EEC committee also agreed to establish an "eastern aviation city", or Aerotropolis, in the vicinity of U-tapao airport, complementing infrastructure such as motorways, deep-sea ports and the high-speed railway linking the three airports.

Andrew J Wood, president of Skal International Thailand, an association of professionals in the tourism business, said the Aerotropolis project could help Thailand become a regional aerospace hub.

"Thailand's aerospace industry is growing exponentially, with air traffic rising at a rate three times faster than the global market and doubling every 15 years since the early 1980s," Mr Wood said.

The EEC Aeropolis will feature an airport city surrounding U-tapao airport, plus industrial areas, an airline MRO centre (for maintenance, repair and overhaul), and facilities to support the tourism business.

According to Mr Wood, there will be an inner ring road stretching 10 kilometres from U-tapao airport to facilitate the aviation city, and an outer ring road to support logistics activities and connect companies with other transport systems in the EEC provinces of Chon Buri, Chachoengsao and Rayong.

He said the EEC Aerotropolis project will strengthen Thailand's MRO capabilities.

The investment value of the MRO centre is expected to reach US$10.6 billion (349 billion baht) through 2024.

Major aerospace companies already present in Thailand's EEC area include Chromalloy, which supports commercial aviation engine manufacturers, and TurbineAero, which was chosen in February by Boeing to provide aftermarket support in the Asia-Pacific region.

The Board of Investment provided more information on investment opportunities in the aerospace industry and the MRO sector in Thailand at an April trade show in the US.

Chokedee Kaewsang, deputy secretary-general of the Board of Investment, said the passage of the EEC bill is a crucial development for the aerospace sector, which has been drawing strong foreign investment over the past few months.

In February, Rolls-Royce signed an agreement with THAI to offer testbed capacity for the airline, a move that the engine maker described as a crucial building block for its growth in Asean.

That same month, Airbus announced a partnership with Thai Aviation Industries in which Airbus will support all of Thailand's law enforcement and military helicopters for the next two years.

Sikorsky, a Lockheed Martin company, also announced that Thai Aviation Services would serve as its customer support centre.

While infrastructure improvements are under way, the private sector is being urged to brace for digital tourism and the cashless society to keep abreast of market trends.

Kalin Sarasin, chairman of the Thai Chamber of Commerce, said the chamber and business allies have worked for a range of strategies under the Digital Tourism Platform set for launch this year.

The strategies include a downtown VAT refund counter, an Amazing Thai Taste showroom, entertainment ticket, online hotel booking, and online package and optional tour.

The first project, starting in the second quarter, will let foreign tourists claim VAT refunds at counters located in shopping centres such as Siam Paragon, CentralWorld, The Emporium, Central Chidlom and Robinson Sukhumvit. Later it will expand to other tourist destinations such as Phuket, Chiang Mai and Pattaya, Mr Kalin said.

The Amazing Thai Taste showroom will let operators showcase Thai food and use QR code for payment. That project will be launched by the third quarter of this year, along with the entertainment ticket that lets tourists buy entertainment admission online.

The last two projects, online hotel booking and online package and optional tour, are set to go live in the fourth quarter.

Mr Kalin said the Digital Thailand Platform is aimed at providing convenience to tourists during their stay in the country, especially those young travellers who use smartphones and digital devices.

The chamber's statistics show that 87% of tourists coming to Thailand use the internet for surfing information before booking, 64% of them do travel planning online, 43% of them read and study reviews before coming, and 42% purchase tourism services online.

There is work to be done to help tourists enter Thailand more conveniently, Mr Kalin said.

The Thai government earlier revoked the Tor Mor 6 immigration form for Thai people travelling in and out the country. The chamber proposes scrapping the form for foreigners as well.

Chanin Donavanik, head of a working group for Mice (meetings, incentives, conventions, exhibitions) under the public-private collaboration called Pracha Rat, urged the government to speed up development of new tourist attractions.

Remodelling the old capital of Ayutthaya is one task, Mr Chanin said.

"Looking at Japan, they made their old capital Kyoto an attractive site that draws millions of visitors year round," he said. "Thailand should do the same."

Also, Hong Kong, Dubai and Singapore have been developing many new magnets to lure international visitors.

According to Mr Kalin and Mr Chanin, efforts to make Thailand one of the best destinations in Asia will only succeed with full cooperation between the government and the private sector.

The two agreed that the Thailand Riviera, a project that recently received the green light from the cabinet, could be a new magnet drawing tourists to the west coast of the Gulf of Thailand, home to Hua Hin and Cha-am.

The Thailand Riviera project was dusted off after the cabinet approved a high-speed railway linking Bangkok to Hua Hin. The study of the train project is under way, with bidding documents to be finalised and sent to the cabinet for consideration this year.

The government also has plans to extend the route of the high-speed railway from Hua Hin down to Chumphon and Ranong provinces.
Asia-Pacific Trent 1000 customers effected by new durability issues

2018-04-20

Rolls-Royce is urging B787 Trent 1000 Package C operators to carry out additional engine inspections. Rolls said the increased inspection frequency was driven by the firm’s “further understanding of the durability of the Trent 1000 Package C compressor”. The inspections will be supported by service management and flight operations guidance to airlines that are to be issued by the airworthiness authorities.

“This will unfortunately lead to additional disruption for our customers. There are 380 Package C engines in-service with airlines. This new regime does not impact Trent 1000 Package B engines or Trent 1000 TEN engines,” the Derby-headquartered OEM said.

Asia-Pacific operators of the Trent 1000 Package C engines include Air New Zealand (Air NZ), Thai Airways International and Scoot. Air NZ said earlier this year that it had to lease in replacement capacity while its B787-9s underwent additional checks. Other global carriers are expected to follow suit.

Rolls-Royce CEO, Warren East, said: “Our focus is on supporting our customers and doing all we can to minimise any impact on their operations. We sincerely regret the disruption this will cause to our customers. Our team of technical experts and service engineers is working around the clock to ensure we return them to full service as soon as possible. We will be working closely with Boeing and affected airlines to minimise disruption.”
Thai airlines flying high

2018-04-02

WITH CONTINUING high competition in the airline business, all Thai firms are adding or expanding routes both domestic and oversees to meet the strong demand growth.

The move comes as the Tourism Authority of Thailand forecasts the number of tourists expected to visit the country will grow by more than 8 per cent this year from last year’s 35 million. All aviation firms are also targeting double-digit sales revenue growth over last year. With Thailand aiming to be the aviation hub for the Asean region, Kasikorn Research Centre has forecast Thai aviation industry’s total revenue will hit Bt300 billion by the end of this year. Four Thai aviation firms listed on the Stock Exchange of Thailand have reported total revenue of Bt276.67 billion for the end of year 2017 or up 6.84 per cent |from Bt258.95 billion in 2016.

Thai Airways International (THAI) is predicting a cabin factor of around 80 per cent this year, and is targeting total revenue growth in the double digits from the launch of its new route to Vienna, Austria, and a planned new route to Okinawa, Japan, said Viroj Sirihorachai, THAI vice president for the revenue management |and commercial services department. Nok Airlines Plc is projecting a 10 per cent rise in income this year with plans to launch additional new routes, both domestic and overseas, along with a programme of cost reductions and improvements in ticket pricing management, CEO Piya Yodmani said recently. In 2018, Nok Air’s passenger volume is estimated to rise to 8.4 million while its cabin factor will likely stay at 86 per cent. The airline’s yield is expected to increase by at least 5 per cent, Piya said. Meanwhile, Nok Scoot Airline, a Nok subsidiary, will this year begin service to South Korea and Japan, with Nok Air expected to hand over more of its passengers to Nok Scoot Airline. Thai AirAsia is also targeting double-digit growth year on year, with plans to launch more new routes. It last week began direct daily flights from Bangkok to Chumphon.New aircraft Thai AirAsia’s CEO Tassapon Bijleveld spoke recently of the carrier’s plans to acquire seven aircraft to bring its fleet to 63 planes. This is in addition to the company’s aims to add more routes to the Indian and Asean markets while maintaining its customer base in the Chinese market. TAA is confident it can end the year with a load factor average of 87 per cent and with a target of 23.2 million passengers served. In 2017, TAA received five aircraft, bringing their year-end total to 56 aircraft. Meanwhile, Thai AirAsia X has set a revenue target of Bt13 billion for 2018. The airline is targeting 2.2 million passengers served and a load-factor average of 86 per cent. It is planning for another four new Airbus A330s to reinforce its position as the leader for flights to North Asia, Japan and South Korea, said CEO Nadda Buranasiri. The airline also added the northern Japanese city of Sapporo to its list of destinations early this year, he added. Bangkok Airways Plc will receive two Airbus A319 aircraft and increase the number of code-share partners under a plan to boost revenue growth by up to 10 per cent this year, company president Puttipong Prasarttong-Osoth said recently. The carrier also aimed to increase passenger numbers by up to 7 per cent this year from last year, with a projected passenger-load factor of 70 per cent. The airline also is planning to launch more new routes serving the Asean bloc, including a Chiang Mai-Hanoi run, which was scheduled to start last week, and a Phuket-Yangon flight planned for a launch in the fourth quarter of 2018, Puttipong said. The route expansion was made possible by the International Civil Aviation Organisation’s (ICAO) decision to lift a “red flag” freeze, creating a significant turning point for Thailand in the last quarter of last year. The challenge remains for Thai Aviation firms to expand into new domestic and overseas routes that are also being eyed by other aviation firms, including low-cost airlines from Vietnam, China, Japan, Indonesia, Malaysia, Singapore, South Korea, Taiwan and Hong Kong. Those airlines are boosting their frequencies to Bangkok as well as other popular tourism destinations, including Phuket and Chiang Mai. In December last year, Qatar Airways launched a direct non-stop service from Doha to Chiang Mai, the Tourism Authority of Thailand reported. With more new airlines in the market, the outlook is for higher competition and cut-rate pricing as carriers fight for customer numbers. But for the first half of this year, when airlines have already added their new routes and destinations, the market price will remain stable, said Nadda. “I believe that in the final analysis, all airlines will compete based on their services and adding new destinations to serve their customers’ demand,” he said.
Oman Air opens Bangkok hub

2018-03-27

Oman Air has relocated its regional head office from Singapore to Bangkok. The move is expected to help Thailand benefit from the travel boom between Asia and the Middle East.
Joseph Cusmano, Oman Air's country manager for Thailand, said the airline closed its Muscat-Singapore route recently because of unsatisfactory operations. The airline shuttered its East Asia head office in Singapore last November.
He said the Bangkok office is being enlarged to take over operations from the Singapore office.
"Bangkok has a great strategic location in Asia and is a bigger aviation hub, making it better for connecting flights. We moved the headquarters here for further growth," said Mr Cusmano.
The airline plans to relocate its Bangkok office from Silom Road to South Sathon Road in April.
Oman Air entered the Thai market over a decade ago. The carrier is recruiting eight more staff and executives, five for sales and reservations and the rest to oversee regional operations.
Since November of last year, the Bangkok office has been responsible for overseeing five countries in East Asia. Besides Thailand, there are also the Philippines, Malaysia, Indonesia and China. The Bangkok office also oversees sales agents (where the airline has no flight operations) in South Korea, Vietnam, Cambodia and Myanmar.
Mr Cusmano said Oman Air is the only Middle East carrier with a regional office in Bangkok.
"Having this head office is helping the airline to cope with travel growth in East Asia, including Thailand and the Middle East," he said.
Oman Air operates three flights per day from Muscat to Bangkok, two daily flights to Kuala Lumpur, one daily flight to Manila, one daily flight to Jakarta and four flights per week to Guangzhou, China.
The Bangkok-Muscat route operates with an average cabin factor of 95-98% in April, which is the annual peak season due to school breaks in Thailand and the Spring vacation period in the West.
Other airlines that provide services between Thailand and the Middle East include Thai Airways International, Etihad, Qatar Airways, Emirates, Kuwait and Gulf Air, with 21 daily flights.
Most of flights are in and out of Dubai, the United Arab Emirates -- an aviation hub in the Middle East.
"The competition in Bangkok and the Middle East is very tough and we'll have to battle it out with other players. One thing we will not do is make our prices lower than others, but we will offer attractive rates with our on-board services," he said.
Last year, Oman Air added its third daily flight for the Thai market but is unlikely to increase frequencies for 2018. The airline will be working with travel agents and business alliances to boost both transit passenger volume and tourist numbers, specifically those visiting Oman.
But the airline may add one flight on the Bangkok–Muscat route to cope with the increasing number of Omani travellers to Thailand.
On average, 30-40 passengers on each flight from Oman is heading to Thailand for medical treatment.
Oman Air is set to take delivery of eight new aircraft this year, five Boeing 737s and three Boeing 787 Dreamliners, on top of its 55 aircraft.
The airline plans to open new routes from Muscat to Istanbul in Turkey, Casablanca, Morocco and Moscow.
Boeing delivers first 737 Max 9 to Thai Lion Air

2018-03-21

Ten months after handing over the first 737 Max 8, Boeing has now delivered the second major variant in re-engined single-aisle family with Thai Lion Air taking the first 737-9 in a 21 March ceremony in Renton, Washington.

The stretched single-aisle powered by CFM International Leap-1B engines completed a 10-month certification effort in January, clearing the way for the Lion Air subsidiary to accept the first aircraft from Boeing.

"The 737 has been the backbone of our business since we began and we will use the added capacity the airplane provides to expand our network and start additional routes to Bangladesh, China and India," says Darsito Hendro Seputro, chief executive and chairman of Thai Lion Air.

Another Lion Air subsidiary, Malindo, took delivery of the first 737-8 and launched operations last May.

In addition to a stretched fuselage, the 737-9 includes the same package of upgrades that Boeing introduced with the Max family. To reduce fuel consumption, Boeing replaced the CFM56 on the 737NG family with the Leap-1B, added the dual-feather Advanced Technology winglet and resculpted the tail cone into a cleaner, circular shape.

"The Lion Air Group is the perfect example of how the 737 Max family provides a common fleet solution across the single-aisle spectrum," says Boeing Commercial Airplanes president and chief executive Kevin McAllister.

The first delivery of the the 737-9 comes five days after the next major variant in the 737 Max family flew for the first time. The shortened 737-7 is scheduled to complete certification testing by the end of the year and enter service in 2019.

The 737-10, a further stretch of the 737-9, will enter service a year later.
Nok Air to repair poor image

2018-03-20

Chief executive Piya Yodmani says the company is considering providing extensive training for staff, especially for managing crises.
Nok Airlines Plc is committed to overhauling its flight delays within the next few months in response to major recent setbacks that have damaged the airline's image.
Piya Yodmani, the airline's chief executive, admitted frequent flight delays has been one of the airline's biggest problems, especially this month, and it has tarnished the reputation of Nok Air greatly.
The major delays were caused by technical problems with aircraft, and airport closures in Nan province and Yangon, Myanmar because of inclement weather.
To solve the technical problem, Mr Piya said the budget airline is considering improving its aircraft maintenance work by having its own maintenance centre, or at least reserving equipment for small repairs.
Aircraft engines are sent to Singapore or China for repairs.
Nok also plans to reserve about two aircraft to carry passengers in case of delays.
The reservation is expected to prevent the airline from increasing capacity much over the next few months, even as market demand ramps up during Songkran in mid-April.
For dealing with upset passengers and handling the crisis more professionally, Nok Air is considering giving its 800 staff (mainly ground workers and air crew) intensive training courses in order to improve services and communications when facing crises such as flight delays.
During the overhaul period, pilot and technicians as well as specialists involved with operations will be asked to participate in another trainings such as repair work.
This is because many passengers affected by recent flight delays have reported inappropriate behaviour by airline staff through online media.
"There was great damage in terms of reputation and customer confidence," said Mr Piya. "However, we regret the problem and are committed to improving our communication and customer services.
"When staff realise there are flight delays, they should be alert and communicate with passengers every 15 minutes. This is just common sense."
He declined to provide the number of delayed flights and damage costs, saying the incident had negative impact on the airline's image, while diminishing passenger confidence.
The budget airline is in talks with Dusit Thani College to provide hospitality and service training.
Nok Air reported 1.85 billion baht losses in 2017, improving from 2.8 billion baht in 2016 losses.
For 2018, Nok Air has targeted to boost revenue by 2.8 billion baht from last year's level to 16.8 billion baht, increasing passenger numbers to 9 million from 8 million in 2017 and raising the cabin load factor to 93%, an increase from 86%.
Thai Technical hopes to win 20% of regional MRO work

2018-03-20

Thai Airways’ MRO arm, Thai Technical, hopes to incorporate its U-Tapao-based joint venture MRO with Airbus by the first quarter of 2020, for launch in 2022.

Thai Technical’s director of MRO strategy and business development Wilarp Thonglaxsanawong adds that feasibility studies with Airbus are "around 80% complete” and that the joint venture agreement is expected to be signed by December.

Thonglaxsanawong’s comments follow a cooperation agreement in December 2017 between Thai Airways International and Airbus to explore MRO business opportunities at U-Tapao airport, after signing a memorandum of understanding in March 2017.

He adds that in 2021, Thai Technical will apply for certifications with the United States Federal Aviation Administration, European Aviation Safety Agency and the Civil Aviation Authority of Thailand.

Thonglaxsanawong adds that should Airbus not proceed even after completing the assessments, Thai Technical will go ahead with the new MRO facility at U-Tapao.

Located 140 km south of Bangkok in the eastern province of Rayong, U-Tapao airport has been earmarked by the Thai government as a capacity reliever for the capital’s Don Mueang and Suvarnabhumi airports.

Thonglaxsanawong says that Thai Technical’s new MRO facility will occupy a land area of 83 acres, and offer various MRO services including line and heavy maintenance. It will also conduct wheel and brake work, as well as engine and component overhauls.

The facility will be able to support various aircraft types including the Airbus A380, A350, A330 and A320, as well as Boeing types such as the 747, 777, 787 and 737.

The U-Tapao Airport Authority has said that the MRO site will initially have a single hangar capable of accommodating three widebodies and four narrowbodies, with Thai Technical as the sole operator in the first five years of operations. Thereafter, the authority will look to construct a second hangar for third-party MRO work.

Thai Technical forecasts that the facility can generate $86 million annually after 10 years, and $629 million annually by 2072, a half century after operations begin. In addition, Thai Technical hopes to capture “at least 20%” of Southeast Asia’s MRO market.

“We have land at U-Tapao to cater to the growing aircraft fleet in this region and manpower cost are lower in Thailand as compared to our regional neighbors,” he adds.

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