Thai Airways plans service to Russia, US after good Q4/2015 results

Corporate March 01, 2016 01:00

By SUCHAT SRITAMA
THE NATION

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THAI AIRWAYS International plans to resume flying to Russia and the United States as part of its plan to boost revenue after seeing cheerful results in the final quarter of last year.



The national airline will also help its budget carrier Nok Air, which has called mass cancellations of flights while sorting out internal problems.
THAI president Charamporn Jotikasthira said yesterday that the company has no plan to sell its stake in Nok Air, despite the issues besetting the budget airline.
Moscow will be added back to the schedule in October – the beginning of the high season for Thailand’s tourism industry.
The airline also expects to return to the US market next year. 
It will add more routes or increase frequencies in Asean countries this year as part of tourism-recovery plans being pushed by the Tourism and Sports Ministry and the private sector. 
THAI took delivery of eight new aircraft and decommissioned 15 in line with the strategy to shrink the fleet to 95 by year-end from 102 the previous year. 
The flight-frequency adjustment and change of aircraft to match passenger demand resulted in more effective aircraft utilisation and improvement in various key indicators, including increases of 0.6 per cent in passenger production and 6.5 per cent in passenger traffic.
Its cabin factor rose to 72.9 per cent from 68.9 per cent last year. 
The number of passengers carried was up 11 per cent to 21.25 million.
The airline posted a net profit of Bt5.4 billion for the final quarter of last year, but an operating loss of Bt13.0 billion for all of 2015. 
The key driver for the upturn was on the expense side – a reduction of 11.2 per cent primarily from falling fuel and non-fuel expenses resulting from rigid cost control and management programmes.