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Thai Airways Sees Red

Category: Tourism, Posted:21 Mar 2012 | 06:00 am

No, its not the return of the political inspired red shirt crisis but Thailand's national flag carrier plunged into a THB10 billion loss in 2011.
While the airline has cited the Japanese earthquake and flooding in the country as key drivers; most industry analysts point to a continued erosion of market share to the low-cost carriers (LCC's).
With most of the LCC's flying newer smaller aircraft, the aging Thai Airways fleet is quickly becoming antiquated.
The airline had planned on the additon of 38 new aircraft, though a shoud of doubt has not been cast over the acquisition plans.
Ultimately Thai is stuck between a rock and a hard place, not unfamilier territory for legacy carriers such as Qantas and JAL.
In the age of regional growth, smaller more fuel effient aircraft and lower cost structures are the only way to maintain a competitive advantage.
Can Thai reinvent itself or will it be headed to crisis management mode? Stay tuned.

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