The Thai Airways International (THAI) head has described the Kangaroo route as competitive and “not all that profitable”.
THAI chief executive Piyasyasti Amranand said that while THAI is keen to increase connections to Auckland, it faces a lot of competition in Australia, the Australian reported.
“We have many flights to Australia but I think the problem is the competition…from other airlines,” Mr Amranand said.
“This is probably where you really see the impact of Middle Eastern Airlines on our operations.”
According to Mr Amranand, THAI’s pending alliance with Tiger Airways will see better results for THAI, capturing a previously untapped market in Thailand and Asia.
“Hopefully, [THAI Tiger] will be in operation sometime in the second quarter of 2011 because [in] the regional market we’re losing out a lot, I think, to the low-cost airlines,” he said.
Speaking of the massive number of non-flying Thais, Mr Amranand said that many of these people would not take their first flight with the premium service THAI, but would more likely "be flying low-cost airlines because they need something cheap".
If the alliance resolves its current issues with the Thai government, the head said Thai Tiger could be set up as a low-budget carrier within the month.
Source = e-Travel Blackboard: N.J