Wednesday, September 10, 2008

THAI forsees passenger drop


Thai Airways International foresees a drop in passengers during the winter schedule although it has yet to be significantly observed. The previous airport closure and violent scenes on TV have triggered cancellations and postponements, mostly from North Asian markets. A few cancellations from long-haul markets have started to appear, which is not a good sign for the coming high season. The official figure of losses since the anti-government group closed airports in August has not been released.

“The longer the unrest goes on, the more the country’s economy will be hurt. I just don’t want to think about it. In my view, if all the mess could be resolved by the end of this month, high season will not go bust, but admittedly the volume will drop. It would be good enough if we could retain what we already have in our hands. Confidence in and the reputation of the country are not only damaged but they are gone,” THAI Area Thailand, Indo-China and the Union of Myanmar director Chris Chantalitanon said.

Asked for the figures on losses caused by the airport closures and their aftermath, he said the official figures have yet to be released. Besides refunds, the airline has been offering schedule changes free of charge regardless of restrictions on fare types.

“We have to offer as much as we can for the sake of the nation, and it is better that passengers carry on with their trips, and not cancel,” he said.

At the moment, Mr Chris said the number of cancellations was not high, but rescheduling was. This is because it is low season and the general mood, politically and economically, is that people will travel because they need to, but not for pleasure.

“I’m afraid that cancellations for those who booked for the high season will start to come. We can see some cancellations from long-haul markets, and this is putting a shadow over the future. The small number of cancellations we are seeing now is because of the tense political atmosphere. The sooner it ends, the more losses we can save,” said Mr Chris.

Travel warnings issued by several countries as a result of the violence last Monday night and the declaration of a state of emergency have prompted the drop, especially from North Asian markets.

Tourism had been doing alright, but the confrontation and the coverage of the violence by foreign news agencies have scared tourists into changing destinations.

Mr Chris said that for now, THAI is keeping its existing schedule and will operate as long as the airports are open. The airline will review the situation on a daily basis, prepare for emergencies and check the situation at the destination before taking off.

To encourage passengers to travel, the carrier is also looking into promotions. However, campaigns will not be launched if the ongoing political situation is not resolved. After life in Thailand returns to normal, the airline can embark on marketing schemes.

Currently, flights are mostly full, but not because of good business. It is because a lot of passengers have not been able to travel earlier due to flight cancellations.

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