Thai Airways Inter-national Plc is hoping to reclaim market share from rivals such as Singapore Airlines and Cathay Pacific by cutting fares, expanding its network and promoting more two-way travel.

Wallop Bhukkanasut, vice president for sales and distribution, said THAI had been losing a large segment of its customers to foreign airlines since 2002.

THAI's share of the number of passengers leaving Bangkok has fallen to 30 per cent from more than 50 per cent. A national carrier like THAI should have no less than 70 per cent, Wallop said.

Singapore Airlines and Cathay Pacific are the main targets in THAI's push to regain market share, but several third-tier airlines that use Bangkok as a stopover - like Swiss and Finnair - will also be targeted as they have seen their passenger numbers increase.

The main reason is price, said Wallop. The rival carriers offer lower prices than THAI, particularly on flights to regional centres like Singapore and Hong Kong.

 "Over three years, large numbers of THAI passengers have flocked to these airlines and more benefits are the only way to lure them back," he said, adding that the airline also needed to upgrade marketing and sales.

Under its new strategy, THAI will monitor sales on each route daily, rather than every three or seven days. When vacant seats are spotted on a flight, sales representatives will offer large corporations and organisations a special price for groups of travellers.

 "This approach is set for all routes where fierce competition prevails, like the flights bound for Hong Kong and Singapore," he said.

THAI also plans to develop so-called triple ports by positioning Bangkok as the stopover for routes between Asia, Australia and Europe. It will operate a Tokyo-Bangkok-Sydney route rather than the separate routes Bangkok-Tokyo and Bangkok-Sydney. Similarly, it will operate a London-Bangkok-Sydney route.

Wallop said this would help THAI draw more intercontinental passengers.

It will also increase flights to India, China, Islamabad and Moscow, and plans to open a new Bangkok-Johannesburg route at the end of October.

THAI's two-way development plan will see it promote more outbound travelling as it shifts away from its focus on inbound travel.

The carrier expects to see a Bt10-billion profit this year, despite soaring oil prices.

Suchat Sritama

The Nation