Thai Airways

This article is about Thai Airways International. For The former domestic airline, see Thai Airways Company.
Thai Airways International
บริษัท การบินไทย จำกัด (มหาชน)
IATA
TG
ICAO
THA
Callsign
THAI
Founded 1 May 1960 (merged with Thai Airways Company on 1 April 1988)
Hubs Suvarnabhumi Airport
Focus cities
Frequent-flyer program Royal Orchid Plus
Airport lounge
  • Royal First Lounge
  • Royal Orchid Spa
  • Royal Silk Lounge
  • Royal Orchid Lounge
Alliance Star Alliance
Subsidiaries Thai Smile (100%)[1][2]
Fleet size 94 (excluding Thai Smile)
Destinations 78
Company slogan Smooth as Silk/ I Fly THAI
Parent company Thai Ministry of Finance,[3]
Headquarters 89 Thanon Vibhavadi Rangsit, Jom Phol Subdistrict, Khet Chatuchak, Bangkok, Thailand
Key people
  • Prajin Juntong (Chairman)
  • Charamporn Jotikasthira (President)
Revenue Increase THB 212.44 billion (2013)
Net income Decrease THB -12.04 billion (2013)
Total assets Increase THB 307.08 billion (2013)
Website www.thaiairways.com
A Thai Airways Boeing 747-400 at Suvarnabhumi Airport, Bangkok 2013

Thai Airways International Public Company Limited, also trading as THAI (SET: THAI, Thai: บริษัท การบินไทย จำกัด (มหาชน)) is the flag carrier airline of Thailand. Formed in 1988, the airline has its corporate headquarters in Vibhavadi Rangsit Road, Chatuchak District, Bangkok,[4][5] and primarily operates out of Suvarnabhumi Airport. THAI is a founding member of the Star Alliance. The airline is the largest shareholder of the low-cost carrier Nok Air with a 49% stake,[6] and it launched a regional carrier under the name Thai Smile in the middle of 2012 using new Airbus A320 aircraft.[7]

From its hub at Suvarnabhumi Airport, THAI flies to 78 destinations in 35 countries, using a fleet of more than 80 aircraft. The airline was once the operator of two of the world's longest non-stop routes between Bangkok and Los Angeles and New York City, but due to high fuel prices, the withdrawal of aircraft, luggage weight limits and rising airfares, the airline abandoned all non-stop U.S. services in 2012 indefinitely. As of 2013, services between Bangkok and Los Angeles are served via Incheon International Airport near Seoul. THAI's route network is dominated by flights to Europe, East Asia, and South/Southwest Asia, though the airline serves Johannesburg in South Africa and five cities in Oceania. THAI was the first Asia-Pacific airline to serve London Heathrow Airport. Among Asia-Pacific carriers, THAI has one of the largest passenger operations in Europe.

THAI is currently an official sponsor of Bangkok United and Red Bull Racing.

History

Sud Aviation Caravelle in Stockholm (1970)
Airbus A340-600 in the current livery landing at Auckland Airport

.

Early beginnings

THAI Airways has its origins in 1960 as a joint venture between Scandinavian Airlines (SAS), which held a 30 percent share of the new company valued at 2 million Thai baht, and Thailand's domestic carrier, Thai Airways Company (Thai: เดินอากาศไทย). The purpose of the joint venture was to create an international wing for the domestic carrier Thai Airways Company. SAS also provided operational, managerial, and marketing expertise, with training assistance aimed at building a fully independent national airline within the shortest possible time. Thai nationals, through training and experience, were gradually able to assume full managerial responsibility and the number of expatriate staff duly decreased, with expatriates accounting for less than one percent of staff based in Thailand in 1987.[8]

The carrier's first revenue flight was on 1 May 1960. Flights were operated to nine overseas Asian destinations from Bangkok. The first intercontinental services started in 1971 to Australia, and then to Europe the following year. Services to North America commenced in 1980.[8]

On 1 April 1977, after 17 years of capital participation by SAS, the Thai government bought out the remaining 15% of SAS-owned shares and THAI became an airline fully owned by the Thai government.[8]

1980s and 1990s: Merger with Thai Airways Company

On 1 April 1988, then-Prime Minister Gen. Prem Tinsulanonda, in seeking to have a single national carrier, merged the international and domestic operations of the two companies to form the present company, Thai Airways International.[8] On 25 June 1991, the new THAI listed its shares on the Stock Exchange of Thailand and offered them to the public. The THAI public offering of shares is the largest ever undertaken in the country.[8]

On 14 May 1997, THAI, along with Lufthansa, Air Canada, SAS, and United Airlines, founded the world's first and largest airline alliance, Star Alliance.

THAI Airbus A300 at Phuket Airport (2008).

2000s: Airline brand renewal and financial difficulties

Throughout the 2000s, THAI aggressively continued its route network expansion with new services to Chengdu, Busan, Chennai, Xiamen, Milan, Moscow, Islamabad, Hyderabad, Johannesburg and Oslo.

Using the Airbus A340-500s it acquired in 2005, THAI commenced non-stop flights from Bangkok to New York, its first non-stop services to North America. The airline later converted existing one-stop services to Los Angeles into non-stop services using the same aircraft type. Citing very high fuel costs, THAI discontinued the New York service in July 2008, even though the airline had been able to fill 80% of the seats. The service to Los Angeles was again reverted to one-stop service via Seoul on 1 May 2012, leaving the airline without a non-stop service between Thailand and North America. The A340s used have been phased out using the Boeing 777-200ER for the Bangkok-Seoul-Los Angeles route. Although the previous A340 used for non-stop services was not subject to ETOPS, the phasing in of the 777 with one-stop service (with the 330 minute rule) will be indefinite for years to come; the airline has no plans to pursue newer North America destinations (e.g. Houston, TX, USA) or purchase the Boeing 747-8 for trans-Pacific routes since Thai Airways is operating the Airbus A380.

In 2006, THAI moved its hub operations to the new Bangkok Suvarnabhumi Airport. Coinciding with the arrival of new aircraft during the mid-2000s, as well as its new hub airport in Bangkok, the airline launched a brand renewal by introducing a new aircraft livery, new aircraft seating, and revamped ground and air services.

The 2000s also saw THAI expanding its route network beyond its Bangkok hub. The airline launched non-stop flights from Phuket to Tokyo-Narita, Seoul-Incheon and Hong Kong.

During the late 2000s, THAI's aggressive growth was hampered by a combination of internal and external factors, including a spike in fuel prices, domestic political conflict in Thailand, and the global economic crisis of the late 2000s. In 2002, Richard A. Kimball Jr aided in the privatization of Thai Airways under Morgan Stanley. In 2008, after achieving profitability for the previous 40 years, THAI recorded a loss for the first time in its history at around 21 billion baht (US$675 million). The airline cited high fuel costs and Thailand's political situation.[9] As of Q2 2009, after a series of restructuring initiatives, including a two-year deferral of its Airbus A380 deliveries, the carrier returned to a net profit of 2.5 billion baht.[10] It has since received its first A380s and commenced service to Hong Kong on 6 October 2012.

2010s: Fleet renewal and expansion

A Thai Airways Boeing 787-8 at Fukuoka in 2014

While celebrating its 50-year anniversary in 2010, THAI, spearheaded by Piyasvasti Amranand, its president and a former energy minister, charted new plans for the airline's future, including a significant aircraft fleet renewal and an upgrade of existing services. THAI has since placed orders for a number of aircraft, including the cost-efficient Boeing 787 and Airbus A350, and it has also launched a refurbishment of its Boeing 747 and 777 cabins. Mindful of rising fuel costs, the airline have now phased-out the most inefficient aircraft, including its Airbus A340-500s. The airline took delivery of its first Airbus A380 aircraft in the last half of 2012, intending to eventually deploy the aircraft on its core European routes.

THAI has also resumed its network expansion with the resumption of flights to Brussels, in addition to a new non-stop flight from Copenhagen to Phuket. At the same time, the Greek debt crisis caused THAI to suspend its services to Athens.

As part of THAI's broader growth strategy in the region, THAI launched a regional carrier with light-premium services, Thai Smile which operate narrow-bodied Airbus A320-200 on regional and domestic routes. The new airline initiated commercial operations in July 2012, after its first A320s were received.

THAI expects to be the first carrier in Asia to fly commercial flights using biofuels. The carrier launched the initiative with experimental flights in December 2011 as part of its Corporate Social Responsibility program, otherwise known as "Travel Green." THAI hopes to stimulate sustained biofuel production in Thailand by working with Thai government agencies and regional corporate partners, such as PTT Public Company Limited. The effort aims to reduce carbon dioxide emissions in regional air travel as well as position Thailand to be the "bio hub" of Asia.[11]

Destinations

THAI service desks at Suvarnabhumi Airport

Codeshare agreements

THAI Boeing 747, in Star Alliance livery

THAI codeshares with the following:[12][13]

* A maximum stay of 21 days is required for passengers traveling between domestic points within Japan on TG-Marketing flights code-shared with Japan Airlines.

All Thai airlines are presently (4/2015) under safety review following a negative audit from The International Civil Aviation Organization (ICAO). The general implications and possible effect on code share flights are reviewed by Watson, Farley and Williams.[15]

Corporate image

Thai Airways corporate headquarters

THAI is one of the few airlines with an inflight uniform change policy. International female flight attendants are required to change from their corporate purple suits (for use outside the cabin) into traditional Thai dresses (as seen on the company's marketing campaigns) prior to the general boarding of passengers. They are also required to change back into the former prior to disembarkation. Consequently, traditional Thai dresses are only visible to the traveling public on-board THAI aircraft or in THAI's premium lounges in Bangkok. Cabin crew of nationalities other than Thai are not allowed to wear the traditional Thai attire. Male flight attendants also have on-board suit jackets that differ from those worn on the ground.

Management issues

Political interference, corruption and abuse of authority have been persistent issues in THAI's management.[16] Speaking at the World Economic Forum on East Asia, former president Piyasvasti Amranand, who had been abruptly dismissed in May 2012, cited THAI's procurement of A340-500s (three of which had since been grounded) as examples of mismanagement influenced by corruption and political meddling, and resulting in losses to the company's operations.[17]

Financial losses

At the commencement of 2014, Thai Airways (THAI) was subject to a rumor that the company would declare bankruptcy in May 2014. Listed on the Thai stock exchange, the company is a state enterprise in which the finance ministry holds a stake of up to 51%. In a statement to the media, Chokchai Panyayong, the airways' senior executive vice-president and acting president, stated: "THAI has never once defaulted. Despite its loss in the third quarter of last year, the company still has high liquidity and has a clear plan for debt repayment." He further explained that the carrier's loss of 6.35 billion baht in the third quarter of last year was the result of the company's unsuccessful plan to attract more customers.[18]

Fleet

As of January 2015, the Thai Airways fleet consists of the following aircraft:[19]

Aircraft In Service Orders Passengers Notes
F C Y Total
Airbus A300-600 4 (OOF) 0 0 28 232 260 All stored and out of service.
Airbus A320-200 4 0 0 0 174 174 All Transferred from Thai Smile[20]
Airbus A330-300 7
15
5 0 42
36
263 305
299
Retiring of 12 older aircraft starts in 2017[21]
Airbus A340-500 4 (OOF) All stored and out of service.
Airbus A340-600 6 (OOF) 8 60 199 267 All stored and out of service. (waiting to be sold)
Airbus A350-900 12 TBA
Airbus A380-800 6 12 60 435 507
Boeing 737-400 2 0 12 137 149 To be phased out by 2015[21]
Boeing 747-400 6
6
10
9
40 325 375
374
6 to be retired between 2012-2015[21]
Boeing 777-200 8 0 30 279 309 To be phased out[21]
Boeing 777-200ER 6 0 30 262 292
Boeing 777-300 6 0 34 330 364
Boeing 777-300ER 12 2 24
42
18
306
306
348
Boeing 787-8 5 1 0 24 240 264 Leased from ILFC.[22] Deliveries 2014.[23]
Boeing 787-9 2 TBA Leased from ILFC.[22] Deliveries 2017.[23]
Thai Cargo Fleet
Boeing 747-400BCF 2 (OOF)
N/A
Converted from passenger aircraft. To be phased out in late-March.[24]
Total 79
16 (OOF)
22

Remarks

OOF = Out of Service.

Fleet development plans

THAI’s fleet development plans, as of December 2011,[25] for the period 2010-2022 is in three phases:

On 13 June 2011, THAI's Board of Directors announced they would purchase 15 aircraft and acquire the remaining 22 on operating leases. The purchased planes include fourteen Boeing 777-300ERs, to be delivered in 2014 and 2015, four Airbus A350-900s (2016 and 2017) and five Airbus A320-200s (2014 and 2015). The leased planes include six 787-8s and two 787-9s from US lessor International Lease Finance (ILFC). The 8 series will be delivered in 2014 and 2015, while the 9 series will be delivered in 2017. In addition, THAI will lease six A350-900s from Aviation Lease and Finance, to be delivered in 2017, and two A350-900s from CIT Aerospace International, which will deliver the aircraft in 2016. The airline will also lease six A320-200s from RBS Aerospace International, to be delivered in 2012 and 2013. All the operating leases have terms of 12 years each.[26][27]

Aircraft maintenance centers - Thai Technical

THAI maintains three maintenance centers located at U-Tapao International Airport, Don Mueang International Airport, and Suvarnabhumi Airport. The centers service aircraft belonging to other airlines in additional to THAI aircraft.

THAI Technical is certified internationally by the Federal Aviation Administration, the Joint Aviation Authorities,[28] the European Aviation Safety Agency Part-145 Maintenance Organisation,[29] and the Japan Civil Aviation Bureau for facilities at Don Mueang International Airport and Suvarnabhumi Airport.[30] It has also received its Requalifier Identification Certificate from the United States Department of Transportation[31] for its operations at U-Tapao International Airport and Suvarnabhumi Airport.[32]

It is certified domestically by the Department of Civil Aviation (Thailand) for all three of its facilities located in Thailand.[32]

On 27 February 1998, the Department received its ISO 9002 certification from Bureau Veritas Quality International,[33] with ISO 14001 certification granted by the same agency on 16 March 2001.[33]

Hygiene Award

THAI initiated a program entitled “The Most Hygienic In-Cabin Environment Program" with an emphasis on air quality, surface cleanliness, and food safety. The program includes removal of all inflight disposable materials after flight, sterilization and fumigation of all cabin equipment, and inspection of the air-circulation system. A special audit process is also carried out for the cleaning and sanitization of the overall aircraft systems by a team of specialists. These measures are applied to the entire THAI fleet.[34]

THAI was the first airline to install hospital-grade air-filter True HEPA, capable of intercepting up to 99.99% of dust particles and micro organisms on every flight.[34] The World Health Organization awarded the airline a plaque for the implementation of its in-cabin management system in 2004. It was the first award of its kind to be presented to a private organization.[35][36]

Ground services

THAI Royal Silk or Royal Orchid lounges are available to THAI's premium passengers in various domestic and international destinations. The airline's hub at Suvarnabhumi Airport also includes a Royal First Class Lounge for first class passengers. Passengers traveling internationally from Bangkok in Royal Silk or Royal First classes are also entitled private security screening and passport control facilities, as well as free spa services at the Royal Orchid Spa, with different services available depending on the service class flown by the passenger. These services are not available to non-premium class passengers. THAI's first class ground services at Bangkok additionally provide private transportation services within the terminal to first class passengers.

On 30 September 2008, THAI's Ground services Department received a Certificate ISO 14001 from Bureau Veritas Certification[37]

Since 4 January 2011, THAI has been providing check-in services at the Bangkok City Air Terminal at Makkasan Station. Train services are provided by the Airport Rail Link (Bangkok).[38]

Cabin services

Royal First Class (First Class)

THAI's Royal First Class seats, manufactured by B/E Aerospace, were introduced with the arrival of the Airbus A340-600, and are equipped with lumbar massage and 15" AVOD touchscreens. These seats are also available on selected Boeing 747-400 aircraft. A new version of Royal First Class seating in a suite or enclosure configuration is available on Boeing 777-300ER aircraft and on THAI's Airbus A380 aircraft and select Boeing 747-400 aircraft after the 2012 refurbishment. Royal First Class passengers can pre-order from 22 available meals.

Royal Silk Class (Business Class)

THAI Economy Class cabin on a Boeing 747-400

THAI's Royal Silk Class seats have been installed on THAI's Airbus A340, Boeing 777, selected Boeing 747-400, and selected Airbus A330 aircraft. The angled shell design seats have 58-62" of pitch and a width of 20-21.5". Seats have lumbar massage and are equipped with 10 to 15" AVOD screens. Prior to refurbishment, older generation Royal Silk seats on some Boeing 747-400s were sold as Premium Economy Class seats on routes to Scandinavian countries. A new set of Royal Silk seats is expected with the arrival of THAI's Airbus A380s and new Boeing 777-300ERs scheduled for delivery beginning in late 2012. The new seats allow for a fully horizontal recline at 180 degrees.

Economy class

THAI's Economy Class offers between 32 and 36" seat pitch depending on the aircraft type. Personal screens with AVOD are present on Airbus A340, newer Airbus A330, Boeing 747-400, Airbus A380 and Boeing 777 (200, 200ER, 300 and 300ER) aircraft.

Royal Orchid Plus

Royal Orchid Plus is THAI's frequent flyer program. It has a membership of over two million people.[39]

Earning miles There are two types of miles which can be accrued with a Royal Orchid Plus account:

Eligible Qualifying Miles (EQM) are earned on:

Qualifying Miles (Q Miles) are the miles flown as well as the bonus miles earned from travel in particular classes of service on THAI and Star Alliance airlines. Royal Orchid Plus miles are earned based on the paid class of travel.

Partner Miles are earned from non-airline partners, such as hotels.

Status Tiers There are four tiers in the Royal Orchid Plus program

Accidents and Incidents

30 June 1967
Thai Airways International Flight 601, a Sud Aviation SE-210 Caravelle III (HS-TGI, Chiraprapa), crashed into harbour waters while on approach to Kai Tak Airport in a tropical rainstorm. Twenty-four out of the 80 passengers and crew on board died.
9 July 1969
A Thai Airways International Sud Aviation Caravelle III (HS-TGK, Tepamart) landed with difficulty at Don Mueang International Airport during a thunderstorm; all 75 on board survived, but the aircraft was written off; the aircraft may have been caught by a downdraft.[41]
10 May 1973
A Thai Airways International Douglas DC-8-33 (HS-TGU, Srisubhan) overran the runway on landing at Tribhuvan International Airport in Kathmandu. All 100 passengers and 10 crew on board survived, but one person on the ground died.[42]
26 October 1986
Thai Airways International Flight 620, an Airbus A300B4-600 (HS-TAE, Sukhothai) landed safely at Itami Airport, Japan after a bomb exploded on board at 33,000 feet (10,000 m) over Tosa Bay; all 239 passengers and crew on board survived. The aircraft was substantially damaged by the explosion but was repaired and returned to service.[43]
10 November 1990
Thai Airways International Flight 306, an Airbus A300-600 flying from Yangon to Don Muang International Airport was the target of an attempted hijacking by individuals demanding to be taken to Kolkata.[44]
31 July 1992
Thai Airways International Flight 311, an Airbus A310-300 hit the side of a hill 23 miles (37 km) north of Kathmandu while descending toward Tribhuvan International Airport from Bangkok. All 113 on board (99 passengers and 14 crew) died. The accident was caused by technical failures, a lack of radar equipment at Tribhuvan International Airport.[45][46]
22 October 1994
A Thai Airways International Airbus A300B4-100 (HS-THO) was written off after it was struck by an out-of-control Thai Airways MD-11 (HS-TMD, Phra Nakhon) that was performing an engine run-up at Bangkok International Airport.[47]
11 December 1998
Thai Airways International Flight 261, an A310-200 (HS-TIA, Phitsanulok), bound for Surat Thani from Bangkok, crashed into a rice paddy about 2 miles (3.2 km) from Surat Thani airport during its third landing attempt in heavy rain; 101 of 146 on board died.[48]
3 March 2001
Thai Airways International Flight 114, a Boeing 737-400 (HS-TDC, Narathiwat), bound for Chiang Mai from Bangkok, was destroyed by an explosion of the center wing tank resulting from ignition of the flammable fuel/air mixture in the tank while the aircraft was parked at the gate in Bangkok. The source of the ignition energy for the explosion could not be determined with certainty, but the most likely source was an explosion originating at the center wing tank pump as a result of running the pump in the presence of metal shavings and a fuel/air mixture, although an assassination attempt was theorized. One crew member died.[49]
8 September 2013
Thai Airways International Flight 679, an Airbus A330-300, (HS-TEF, Song Dao), arriving from Guangzhou Baiyun International Airport (CAN), China, had a runway excursion from runway 19L while landing at Bangkok-Suvarnabhumi Airport (BKK), with extensive damage to the airplane and the runway. All passengers and crew were successfully evacuated with no serious injuries.[50]

Board of Directors

Former chairmen include Prajin Juntong,[51] who still remains as a board member, however, Mr Ampon Kittiampon,[51][52] is the current chairman of the airline. Other members of the board include;

See also


References

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