Earlier this week Thai Airways International reported a large drop in passenger numbers, citing the H1N1 influenza pandemic. The national flag carrier has also been negotiating to delay the delivery (and payment) of its six Airbus A380s.
It's certain the H1N1 outbreak and the global economic crisis are taking there toll on international travel, but Thai's problems stem from their inability to compete on price.
To prove this I've conducted my own investigation. Using only airline websites and opting for the cheapest possible fares I discovered just how uncompetitive Thai Airways really is.
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The first theoretical trip is from Bangkok to Singapore, departing on the morning of Thursday, August 20th and returning on the evening of Sunday, August 23rd. To even the results I've included the extras to take account of a 20kg baggage allowance that is charged by some low-cost carriers.
Jetstar - 3,469 baht
Tiger Airways - 4,665 baht
Cathay Pacific - 5,710 baht
Thai Air Asia - 5,808 baht
Singapore Airlines - 8,420 baht
* Malaysia Airlines - 9,330 baht
Thai Airways - 9,825 baht
* Indirect flight.
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The second theoretical flight is on the ultra competitive Bangkok - London route on Tuesday, October 20th, returning a week later on Tuesday, October 27th. In the very few cases where pricing was not offered in Thai baht I have used exchange rates from xe.com.
* Qatar Airways - 25,855 baht
* Etihad - 28,120 baht
* Austrian Airlines - 28,135 baht
Eva Airways - 29,095 baht
* Air Berlin - 31,980 baht
* Turkish Airlines - 33,075 baht
* Malaysian Airlines - 33,490 baht
* Jet Airways - 34,920 baht
* Swiss - 35,880 baht
British Airways - 36,790 baht
* KLM - 37,470 baht
* Gulf Air - 37,820 baht
* Emirates - 38,745 baht
* Lufthansa - 38,815 baht
* Alitalia - 41,204 baht
* Cathay Pacific - 43,135 baht
* Singapore Airlines - 44,010 baht
* Air France - 48,075 baht
Qantas - 49,090 baht
* Finnair - 49,415 baht
Thai Airways - 66,965 baht
* - Indirect flight.
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Just to reiterate these were the cheapest available options offered by the airlines' own websites and are inclusive of all applicable taxes. These rates were available for booking during the evening of Thursday, July 16.
Data from the company's Investor Relations website for May, the last available figures, shows a total load factor across the airline of 57.5 per cent - down 15.2 per cent from the same month last year. The only area where the company is making money from its passenger services in on domestic routes.
You can see clearly that Thai Airways may be citing man reasons for its current problems, but when it comes down to price they're the most expensive. And in the current economic climate that makes all the difference.
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