THAILAND AIR WARS AirAsia versus Thai Airways

Posted: 27 Dec 2009 | 11:28 am

Back of AirAsia's recent new route between Phuket and Udon Thani there appears to be an air war brewing between the growing number of low cost carrier's (LCC's ) and national airline Thai Airways.

Loss making Thai has said it will cancel flights between Bangkok and Udon Thani next year. At the same time it will shift much of it's tertiary short haul domestic destinations to subsidiary Nok Air in order to retain similar budget operations and a cost base.

For many destinations they feel the change represents a downgrade, which is sparking controversy with political and business sectors. In the US many small marginally profitable destinations have seen services discontinued with mounting cost pressure and what often boils down to loss leaders.

Thai Airways has continued to attempt to shore up savings measures to mitigate losses though at the same time is doing little to upgrade services or aircraft which appears to many to be a poor long term strategic blunder.

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