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LAXintl
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Thai Airways End 747 Freighter Ops

Tue Mar 24, 2015 6:21 pm

As part of Thai Airways broader restructuring the carrier has announced it will exit its freighter business and ground pair of 747-400BCFs.

Thailand freight market has yet to recover and in February continued to see further year over year declines unlike neighboring nations which have posted strong results since second half of 2014.

TG's sole remaining freighter route is BKK-DEL-FRA-AMS-BKK rotation in addition to random adhoc regional flights.


Thai Airways to End Cargo Services and Downsize its Aircraft Fleet
http://news.thaivisa.com/thaivisa-ne...downsize-its-aircraft-fleet/42095/

Thai Airways restructure sees its air cargo services cut back and an end to freighters
http://theloadstar.co.uk/thai-airway...cut-back-and-an-end-to-freighters/

=

Quite a decline for TG Cargo. It was one of the first airlines to utilize the 777F in 2010 under what was supposed to be long term leases from Southern Air.
I knew something was up with the 747 freighter ops when TG tried to briefly sell the aircraft last fall.
From the desert to the sea, to all of Southern California
 
factsonly
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RE: Thai Airways End 747 Freighter Ops

Tue Mar 24, 2015 6:56 pm

TG Cargo last operated its scheduled B744F service BKK-DEL-AMS-BKK with HS-TGH on Tuesday 10 February 2015.

Since February 10, 2015 all flights on this route have been cancelled.
 
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mercure1
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RE: Thai Airways End 747 Freighter Ops

Tue Mar 24, 2015 8:06 pm

Whats troubling and mentioned in one of the articles is the Thailand still faces downward trend in both freight and passengers from historic key markets like Europe.

The coup certainly did a terrible number on TG.
mercure f-wtcc
 
lawair
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RE: Thai Airways End 747 Freighter Ops

Tue Mar 24, 2015 9:46 pm

Quoting mercure1 (Reply 2):
Whats troubling and mentioned in one of the articles is the Thailand still faces downward trend in both freight and passengers from historic key markets like Europe.

The coup certainly did a terrible number on TG.

TG may be suffering, but BKK is not. February numbers at BKK are up 17.7% over February 2014 (which was prior to the coup). International was up 23.1%.

http://centreforaviation.com/news/ba...-18-cargo-up-11-in-feb-2015-429506
 
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LAXintl
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RE: Thai Airways End 747 Freighter Ops

Tue Mar 24, 2015 10:27 pm

Quoting lawair (Reply 3):
TG may be suffering, but BKK is not. February numbers at BKK are up 17.7% over February 2014 (which was prior to the coup). International was up 23.1%.

If you look deeper much of the traffic growth in Thailand is fueled by things like LCC growth in region including Smile getting bigger at BKK. LCC are doing good in stimulating with low pricing. Also Chinese leisure travel is becoming a ever bigger part of Thai tourism while deeper problem exist as historic markets like Europe.
Hotel occupancy as of January was still atrociously low (were are talking in the 46-69% range depending on region of country).

As far as cargo, yes Thailand with export oriented economy balance of trade in January registered its lowest volume since January 2012 with the exception of May-Jun 2014 which was the immediate coup period.

Certainly not good for TG. Hopefully they do better once resized to 77 aircraft from 106 by the end of 2015.
From the desert to the sea, to all of Southern California
 
lawair
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RE: Thai Airways End 747 Freighter Ops

Wed Mar 25, 2015 12:36 am

Quoting LAXintl (Reply 4):
If you look deeper much of the traffic growth in Thailand is fueled by things like LCC growth in region including Smile getting bigger at BKK. LCC are doing good in stimulating with low pricing. Also Chinese leisure travel is becoming a ever bigger part of Thai tourism while deeper problem exist as historic markets like Europe.

This is not completely the case. WhIle LCC growth at BKK was 84.33%, if you subtract all LCC traffic from the equation, traffic growth was still 12.9%. (Data from AOT's website shows 4565855 total, 480824 LCC traffic in 2015; 3878377 total, 260853 LCC in 2014). Thai smile has had only moderate growth at BKK since it has started to service DMK domestically. It's also not a true LCC though I am guessing AOT classifies it as one. whatever growth it's experiencing doesn't seem to be helping its parent TG.

European arrivals are still low, but they are disproportionately dragged down by Russia's numbers (down 46%). Spain and Italy are up 8 and 11% respectively, while uk and Germany are flat. UK numbers actually grew in 2014. Hotels are still in bad shape but they were down long before the coup.

My main point is that either Thailand has recovered from the coup or the coup had no long term negative impact. The problems we're discussing now are TG problems, not Thailand problems. other carriers have been expanding or upgauging at BKK (e.g. SQ, QR, KE, NH, TK, BR, OZ)

[Edited 2015-03-24 18:48:26]
 
olympic472
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RE: Thai Airways End 747 Freighter Ops

Wed Mar 25, 2015 1:57 am

Quoting lawair (Reply 5):
other carriers have been expanding or upgauging at BKK (e.g. SQ, QR, KE, NH, TK, BR, OZ)

Yet one United States carrier had all the reasons to withdraw completely from BKK. It blamed it on everything else but its management and marketing.
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LAXintl
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RE: Thai Airways End 747 Freighter Ops

Wed Mar 25, 2015 3:15 pm

Quoting olympic472 (Reply 6):
Yet one United States carrier had all the reasons to withdraw completely from BKK. It blamed it on everything else but its management and marketing.

Traffic between the US and Thailand is on the decline.

Both Thai visitors to the US and US visitors to Thailand are down.

Stark contrast with virtually every other Asian market which has been growing.

Add in fact that Thailand is a leisure heavy market, its not exactly the best opportunity for 3-class legacy airline model.

Look at the major European airlines (AF, LH, SK, etc) which as well have been challenged in maintaining service to BKK with their premium heavy model.
From the desert to the sea, to all of Southern California
 
777way
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RE: Thai Airways End 747 Freighter Ops

Wed Mar 25, 2015 3:36 pm

So which Asian countries are leisure destinations for Americans? for just about everyone else its Thailand.
 
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mercure1
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RE: Thai Airways End 747 Freighter Ops

Wed Mar 25, 2015 3:52 pm

Quoting LAXintl (Reply 7):
Look at the major European airlines (AF, LH, SK, etc) which as well have been challenged in maintaining service to BKK with their premium heavy model.

Yes Thailand has been a challenge for the legacy European carriers as its a heavily holiday focused market flooded with low fares and packages.
AF reduced frequency and assigned high density aircraft, SK made BKK seasonal, while LH also stated difficulties ended MUC route and removed F class on FRA.

Quoting 777way (Reply 8):
So which Asian countries are leisure destinations for Americans? for just about everyone else its Thailand.

I dont think Americans travel half way around the world for beaches. They have Hawaii, Mexico and Caribbean at door steps. In addition Americans receive very few holiday time compared to visitors from places like Europe.
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LAXintl
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RE: Thai Airways End 747 Freighter Ops

Wed Mar 25, 2015 4:11 pm

Quoting 777way (Reply 8):
So which Asian countries are leisure destinations for Americans? for just about everyone else its Thailand.

If its for tourism then top Asia markets for US residents are Japan and China. If you add in VFR component then India and Philippines join the list.
A bit further down the tourism list are Korea, Hong Kong, Taiwan, per US Dept of Commerce 2013 travel and trade survey.

With regards to Thailand there were only about 750,000 US citizens (which many are ethnic Thai) that traveled to Thailand in 2014. A rather small number compared to 4.5mil from the EU, 1.6mil Russia, etc..

Thailand is certainly a worthy place to visit, but its far from the top of the list for average American who will pick a few dozen other nations before thinking about Thailand. Thailand is not even in the US top-25 outbound list.
From the desert to the sea, to all of Southern California
 
max999
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RE: Thai Airways End 747 Freighter Ops

Wed Mar 25, 2015 7:03 pm

Quoting LAXintl (Reply 10):
Thailand is certainly a worthy place to visit, but its far from the top of the list for average American who will pick a few dozen other nations before thinking about Thailand. Thailand is not even in the US top-25 outbound list.

On average, Americans get the least amount of vacation time of almost every Western country... then places like Thailand are pretty low on the list of places to visit. Closer international destinations like UK and France are more accessible especially when considering the precious little time off Americans get.
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lawair
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RE: Thai Airways End 747 Freighter Ops

Wed Apr 08, 2015 12:49 pm

Quoting lawair (Reply 5):
Hotels are still in bad shape but they were down long before the coup
Quoting LAXintl (Reply 4):
Hotel occupancy as of January was still atrociously low (were are talking in the 46-69% range depending on region of country).

It looks like numbers are trending upward. Russian numbers are still very weak.

Hotel occupancy averaged 78% in the tourist areas during February. Phuket at 87.1% and Bangkok at 82.7%. International visitor arrivals for April 1-4 are up 37.8% yoy. Traffic from Nordic countries expected to be down around 5% for the year.

Exports still stagnant. (This definitely precipitated the need for TG to drop freighter services.)

www.bangkokpost.com/business/tourism...chinese-arrivals-rescue-q1-figures
 
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christao17
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RE: Thai Airways End 747 Freighter Ops

Wed Apr 08, 2015 1:32 pm

Quoting olympic472 (Reply 6):
Yet one United States carrier had all the reasons to withdraw completely from BKK.

Assuming you mean UA? Which didn't withdraw completely from BKK. They used their JV to continue a presence there in a way that is more cost-effective for them and JV partner NH.
More than a dozen years flying in and around Asia...
 
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neutrino
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RE: Thai Airways End 747 Freighter Ops

Thu Apr 09, 2015 12:29 pm

Quoting mercure1 (Reply 2):
The coup certainly did a terrible number on TG.

The junta seem to think they (themselves) are the best thing since Tom Yam Kung.
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