Running an airline is a hard job. It is difficult to make money, but it is very easy to lose money. If there is insufficient passenger flow, you will lose money, if the oil price is high, you will lose money, if the competition is fierce, you will lose money, and if you fall the plane - it will lose even more.
Picture: Thai Airways 777-200Photos: Pull up the curtains
When you encounter difficulties, some airlines will "borrow money" and some airlines will "reduce". Thailand relies heavily on tourism, and Thai Airways suffered serious losses during the epidemic, but it now seems to have "successfully overcome the tribulation" through a series of measures such as "selling planes" - is there something worth learning from among them?
Thai Airlines is a Thai royal asset, but has good service and a good reputation. Its fleet size once reached more than 80 aircraft. When facing the impact of low-cost aviation, it did not use "imperial power" to squeeze out like some countries, but instead actively established low-cost aviation (Thai Smile) to deal with it. It regards business routes as its "blue ocean". It has been transformed into a "full-wide-body fleet" after retiring in 2018 - in LaCross Impression, it is the second largest "full-wide-body" company in the world after the UAE.
Photo: The world's second largest "full-width" fleet Photo: Pull up the curtains
Thai Airlines has taken a series of measures during the epidemic, and now it seems to be more correct. Mainly including:
1. Stop the introduction of
. During the entire 2020 and 2021, Thailand Air did not introduce a single aircraft. This is certainly due to lack of money, but it is also related to its firm strategic policy. In contrast, although my country's civil aviation has suffered serious losses and a large number of aircraft are slumped, the three major state-owned aviation still introduces aircraft step by step, with all of them all, which is really not a pity for spending money.
Picture: Thai Airways 777-300Photos: zhangmx969
2.Simplified model
Thai Airways models used to be very complex, including A380, A330, and 777, 747, 787 and A350. During the epidemic, it sealed off A330, stopped 747, and actively sold A380, with only three types of operation left, A350, 777 and 787, reducing maintenance pressure.
3. Reduce the fleet
Thailand Airways is very determined to reduce its fleet. It had negotiated with Boeing to try to cancel orders for three 777-300ERs. It also actively sells sealed aircraft, and in November 2020 it sold 34 aircraft, including 737, 747, 777, A300, etc. These efforts have achieved results, for example, two 747-400 cargo planes have taken action and transferred to Moldova .
Picture: Thai Airways no longer operates 747 Photo: zhangmx969
Thai Airways fleet size was only 40 last year, which was more than half of the reduction before the epidemic. In terms of operations, some say it is still in a loss state and has $3 billion in debt. But some people say that it reduced the pressure by disposing of old assets and achieved "book profit" in 2021 - because of selling aircraft, it generated a profit of US$1.7 billion. If my country's three major aviation companies also actively deal with idle assets, I believe the results will be considerable.
Thai Airlines not only sells aircraft, but also sells spare parts and cabin supplies, and even seats, tires, foreign wine and pepper bottles... as long as it is conducive to business, it will be sold! So although this company has always had accusations of "nepotism" and "corruption", it has never gone bankrupt and its losses have not continued to soar like the three major airlines in our country.
Picture: Thai Airways A330-300Photo: zhangmx969
The epidemic in Thailand has "end" and the border is fully open from July 1. Thai Airways is now in its dawn, with three brand new 777-300ER passenger planes in April, and now in response to the rapid flow of passengers, it is also preparing to unblock three A330-300s and two 777-200s. But unfortunately, its 747 and A380 will not return to the sky to save fuel costs.
Picture: Thai Airways 787-8 Photo: zhangmx969
The number of flights at Bangkok Suna Wanpu Airport exceeded 600 in July, and is currently operating at a level higher than Singapore Changi Airport .Many flight attendants believe that Thailand Airlines' "tribulation" has been successful, and it will definitely unblock more and more aircraft, gradually moving its fleet size to 80 again.
When it should be expanded, when it should be reduced, it is not easy for Royal Airlines to have such a sense of responsibility. It is very typical case of relying on "selling inventory" to overcome difficulties. Our three major airlines are still struggling in the abyss. I wonder if I can learn something from Thai Airways.
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