Airline industry cannot write-off Thai Airways as a laggard. She has the unique strength of balancing supply and demand dynamics in a competitive environment. What is lacking is the ability or perhaps the willingness of corporate management to synchronize this in their business strategy. Read for more….
Supply side
Fleet management is a key issue here. Due to bad time nagging Thai Airways (referred to by its ICAO code as TG), few planes were sold by action in addition to cancelling lease on few others. Yet by May 2021, in addition to other aircrafts TG had a fleet of 36 wide-bodied ones specially Boeing & Airbus. A conscious effort is currently being made to prune multi-type aircrafts in fewer numbers to 2 to 4 major types to serve both domestic and foreign routes. To buttress maximization of use it is essential to optimize route network anchored on increased flight frequency to profitable destinations.
Equally important in her business strategy, is flight operations where cabin crew matters. Positioned as premium airline TG was smooth as silk with fabulous appendices including fastidious in-flight cuisine and bewitching smile of flight attendants whose silk attire adds more to the silky feeling pandered over by courteous service. No wonder, the air travellers come out with profuse praise. “Satisfied customer always return” goes the marketing maxim. Planning & delivering customer–centred service requires motivated staff for which there is no dearth in TG.
Cost of fuel cannot be easily predicted or planned. Yet by using fuel efficient wide aircrafts such as Airbus it can be minimized. Non-fuel cost is a different animal. TG has taken great stride in bringing down this to appreciable degree, of late.
Demand side
Suvarnabhumi International Airport (BKK) as the major hub for TG has played key role in not only bringing her to international attention, but having opened the doors for collaboration with other airlines for the mutual use of the hub for increasing air traffic. This business strategy has soothing effect on the ground service facilities provided to collaborating airlines in the hub simultaneously obtaining TG to use corresponding services in the home country of major airlines.
What is more, as one of the founder member of Star Alliance TG has reputation to be lived with? Under code sharing with more than 13 major airlines areas like transit traffic has come to the fore. Airlines serving the hub brings travellers who either fly to regional airports using TG or feeding passengers to travel destinations boarding on TG domestic flights. The eloquence is felt where TG domestic aircrafts give excellent service to the transit travellers similar to or better than what they got from the planes they travelled to Thailand. Confidence shows in business strategy.
Brand loyalty towards TG is exhibited by Thai nationals as well as foreign travellers. Needless to say that “Most hygienic Airline” certification issued by World Health Organization (WHO) boost the image of TG especially during these days when Covid-19 has ravaged the air travel industry. Thai Airways can keep her head straight on this count.
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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