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Two Brand Strategy
THAI and Nok Air join forces to boost domestic and regional air traffic
Thai Airways International Public Company Limited is joining forces with Nok Air beginning March 1, 2010, when Nok Air will operate flights to some of THAI’s domestic destinations: Phitsanulok, Ubol Ratchathani, and Mae Hong Son. This cooperation will increase the competitiveness of both airlines, and passengers will be able to take advantage of more convenient travel at low-fare prices while still maintaining THAI’s high safety standards.
Mr. Piyasvasti Amranand, THAI president, said that the company’s policy to form cooperation with Nok Air is based on its Two-Brand Strategy. Through this strategy, there will be increased cooperation in the services offered on secondary domestic and regional routes. Through THAI and Nok Air’s cooperation, passengers on these routes will continue to receive the same standard of services that they currently receive on THAI, such as same flight frequencies, whereby there are no less flights than previously operated; same standards of aircraft maintenance; and same cockpit crew standards.
THAI has made careful studies and thoroughly assessed the flight sectors concerned to prevent negative impacts on customers. Connecting traffic between domestic routes from Nok Air to THAI international flights have also been worked out. The cooperation will add more connecting points in the secondary domestic and regional destinations to THAI and Star Alliance’s global network. THAI will be able to better utilize its aircraft by offering more flight options to high-demand destinations, while still emphasizing its premium-service standards to passengers based on its strategic plan.
The company has conducted a study on the performance of its domestic routes during the past 10 years, particularly on secondary routes, which was unprofitable for several years, with operations sustained for the traveling public. However, in order to meet demands of a continually-changing international airline industry, airlines across the world, including THAI, had to adjust their strategic planning on the recovering world economy - fluctuating world fuel prices that are on the rise and Influenza A (H1N1) - in order to surpass the financial crisis and further its business operations. The company, therefore, had to establish its corporate strategy and make adjustment on its cost to meet increased competitiveness. Over the past 5 years, losses were incurred for operational results on flights to Phitsanulok at the average of 86.3 million baht per year, to Ubol Ratchathani at 74.9 million baht per year, and to Mae Hong Son at the average of 49.9 million baht per year.
Passengers can be confident on Nok Air’s standards of flight operations and services that will be supported by THAI, which is recognized for its high safety standards. In addition, passengers will continue to receive the same standards of service that they previously received from THAI, including flight frequency and seat capacity at attractive prices.