THAILAND TRAVEL NEWS: Thailand’s national flag carrier, Thai Airways International (THAI), has reported an operating profit for the 2009 year of Bt7.34 billion (about $US221.7 million).

The report was lodged with the Bangkok Stock Exchange on Friday, while much of the country’s interest was focused on the outcome of a long-running corruption court case involving runaway former prime minister Thaksin Shinawatra.

The results are a stark difference to those reported last year when the airline recorded a loss of Bt21.38 billion ($US646 million) – it’s first loss making year since it began flying in 1960. Last December THAIs new chairman, Ampon Kittiampon, said for the first three quarters of 2009 the airline had cut losses for the period to just Bt1.57 billion ($US47.43 million), compared to Bt6.61 billion ($US200 million) loss for the same period in 2008.

Since being appointed last April, Mr. Ampon, who is also secretary-general of the National Economic and Social Development Board, has overseen dramatic changes to the airlines operation, philosophy and procedures, aimed at presenting a more streamlined, efficient, transparent, youthful and vibrant airline to the world.

This has included shutting-down operations at the old Don Mueang Airport, shedding jobs, introduction of a union-backed voluntary redundancy plan for 200 of its older female flight attendants, and establishing an e-Commerce department aimed at leveraging web 2.0 and mobile technologies.

The board of THAI has supported the new chairman, committing to new aircraft leases, confirming the purchase of addition aircraft, and committing to a Bt4.5 billion ($US136 million) overhaul program to bring 12 of its aircraft up to standards rivaling other regional and international carriers.

Over the last 12 months THAI has been able to increase passenger revenue from Bt1.9 (six cents) to Bt2.1 per kilometer flown, while passenger loads last November were 74.2 per cent – only marginally lower than the 76.7 per cent targeted.

The establishment of an e-Commerce department last year charged with maximizing the airlines return from its online and mobile markets is also seen as having great potential.

Being a late adopter of web 2.0 and mobile marketing technology gives THAI the advantage of seeing what their competitors have done and then picking the most successful features from each carrier and combining them in its own implementation.

During the week THAI said that users of iPhone, BlackBerry, Android, Symbian, and Windows Mobile operating system-based mobile phones will be able to reserve, buy tickets, and instantly complete all the processes required for travel using their handsets within three-months.

It also announced a major embracement of e-Commerce with the goal being to increase online ticket sales from the paltry 6 percent per month in 2009, to 15 percent this year.

By offering more competitive prices direct from its website, THAI hopes to see the internet become its main revenue generating channel.

Mr. Ampon has already said that efficiency and transparency strategies put into place during 2009 will continue this year, with additional areas being investigated for reducing costs while improving service standards.

By John Le Fevre

Thailand Travel News for February 27, 2010