Turbulent news in the world of aviation, as it has been revealed that Thai Airways continues to hemorrhage money…
But! This is not an industry trend with Turkish Airlines announcing triple profits!
Why has Thai Airways experienced some massive losses?
Astute readers who have subscribed to Simple Flying (And if you haven’t we highly recommend that you do!) for some time will have heard of the various strange and wacky stories coming from Thai Airways.
- Off-duty pilots who delayed a flight because they were not given first class tickets (for free), forcing paying passengers to move seats.
- A Thai Airways Boeing 747 skidding off the runway in Bangkok.
- Thai Airways unable to decide between the 777x and the A350 fleet for their fleet renewal.
- Thai Airways shutting down routes to Australia, the closest and biggest western market to Thailand.
From these stories, one has to wonder if there is a pattern and that they are connected. Unfortunately, just recently Thai Airways has announced that their losses have doubled.
The airline reported a quarterly loss of 3.69 billion baht ($111,548,700).
They have just passed the losses from the entirety of last year (Currently at 103% when compared to last year) and its only the third quarter. Passenger numbers are down 2% year on year as well.
The CEO, THAI president Sumeth Damrongchaitham, was quick to point out that total revenue was up 2.2% compared to last year, and that these losses were because:
- Natural Disasters, such as the Typhoons in Hong Kong and Japan (Both key routes for Thai Airways).
- Declining Chinese tourist trade to Thailand.
- Rising oil prices (A common problem that is leading to many airlines struggling).
But he did not mention some of the other problems that many industry commentators have with Thai Airways. You see, many believe that with their aging fleet of 747-400 jets and a lackluster market offering perhaps simply their lack of performance is from a lack of appeal. Add in the zany stories of nepotism and sheer corruption from staff and pilots, and it’s no wonder that passengers are choosing to fly with other carriers.
How did Turkish Airlines triple their profits?
Making Thai Airways very jealous is their Anatolia equivalent, Turkish Airways who recently posted triple profits for the same quarter.
This time last year they had only made $263 million USD, but yesterday they announced that for this years 9-month period they have earned a massive $755 million net profit. How did they manage this? Turkish Airways has simply praised increased demand and more product efficiency.
Turkish Airways was recently in the news for beginning operations at the new Istanbul Airport, but this would not be the main reason for their increased efficiency.
After all, look at the stories we have reported on Turkish over the same time period:
- Turkish Airways may get business class suites with doors.
- Turkish Airways takes delivery on new A321neo.
- Turkish Airways launches a Lego-themed safety video.
- Turkish Airways starts direct flights to Bali.
Perhaps a similar but different pattern to Thai Airways will emerge?
“Despite the various regional and sectoral conditions that we have encountered, especially in the last few years, the persevering attitude we displayed has been the source of our steady rise,” – Turkish Airways Board Chairman Ilker Ayci
What do you think? Can Thai Airlines fix their problems and is Turkish Airlines profits deserved?