News Forum - Airlines battle high operation costs, ask for government help

[Thaiger]

With tourists slowly returning to Thailand, airlines are fighting to stay afloat as they battle soaring operating costs, especially with the high price of fuel, and are calling for government assistance. The surge in passengers this month and over this 5-day weekend may not be enough to offset the coming low season after over 2 years of limited travel during the pandemic. The cost of petrol is one major factor, with fuel accounting for 35% of airline operational costs, up from a maximum of 30% before, according to the head of commercial operations for Thai Lion Air. And while oil […]

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[Pompies]

What about regular businesses, don't they have higher fuel costs, higher electricity costs, higher input costs from food, drink and other suppliers. We had no relief from property rental during the 54 week compulsory shut down, and even the police are now demanding higher protection money. And we have had not one satang of government help at any time. So I feel no concern for fat cat airline operators. They are no more important to the country than anyone else.

[Marc26]

10 minutes ago, Pompies said:

What about regular businesses, don't they have higher fuel costs, higher electricity costs, higher input costs from food, drink and other suppliers. We had no relief from property rental during the 54 week compulsory shut down, and even the police are now demanding higher protection money. And we have had not one satang of government help at any time. So I feel no concern for fat cat airline operators. They are no more important to the country than anyone else.

I don't know if I would call airlines in Thailand fat cat operators

 

They are so cheap I look at them as almost a service.........

 

Now the  airlines in US/Canada? yes

[BIGGLES]

Airline ticket sales are done with what they call Dynamic Pricing. I've always thought, that just meant, they could charge what they like, when they like.

So they'll just have to be a bit more Dynamic, schedules need to be better for connecting flights from BKK to HKT and HKT to BKK for example.

If they are not cheap, they will go out of business. The sad reality is, people will not tolerate being bent over a barrel and shafted.

So keep it cheap or go bust, all the excuses for not doing so, that get trotted out, people are not interested in them.

[Mazz11]

I once heard a comment by a very successful entrepreneur.

'If you want to lose all your money, buy an airline' 

[KaptainRob]

With the operating costs of an a320/b737 at something around US $6k to 8k per hour (US stats) you can do the math for eg:180 pax full flight. 

I've just purchased 4 flights of 1hr duration @ 1,000 thb nett each (before taxes).  Assuming a full flight that could equate to a mere US $5,000 per hour in revenue.  Thai carriers have lower wage costs across the board but fuel, maintenance and leasing costs are similar.

Slim margins even before they recoup 2 years of losses! Small wonder the airlines are cancelling or rescheduling in order to fill seats.

[ronnie666]

For what help.. they charge whatever they want anytime, now doing sad, I am sure there are billions in the bank accounts, or sell an airplane, better a full plane with lower prices then 2-3 people in the plane, airlines forget many have financial difficulties, so can not afford the mafia prices, maybe low budget prices gone when will they stop making mafia prices??? They never did

Edited July 14, 2022 by ronnie666

[Marc26]

13 hours ago, ronnie666 said:

For what help.. they charge whatever they want anytime, now doing sad, I am sure there are billions in the bank accounts, or sell an airplane, better a full plane with lower prices then 2-3 people in the plane, airlines forget many have financial difficulties, so can not afford the mafia prices, maybe low budget prices gone when will they stop making mafia prices??? They never did

Just a ridiculous post.........

 

Thailand airlines charge too much?

You can fly pretty much anywhere for under $75usd

 

You guys are simply ridiculous on this forum.......

[ronnie666]

22 hours ago, Marc26 said:

Just a ridiculous post.........

Thailand airlines charge too much?

You can fly pretty much anywhere for under $75usd

You guys are simply ridiculous on this forum.......

At least not as much as you

[Pinetree]

On 7/14/2022 at 4:17 AM, Mazz11 said:

I once heard a comment by a very successful entrepreneur.

'If you want to lose all your money, buy an airline' 

Or, if you want to make a small fortune by buying an airline, start off with a large fortune.  They are old clichés and almost universally wrong. Successful, profitable airlines are just better managed than  unsuccessful and loss making ones. Proof of this are Singapore Airlines, Eva Air, Japan Air, Nippon Airlines, BA (poor but profitable), Southwest and Ryanair ( horrible , but profitable) .  There are others,   I have left out Middle East Airlines, who are less  transparent about their funding and ownership.   It can be done, its just that many airline management teams just can't do it.