Thai Launches price war with Air Asia

THAI launches price war with AirAsia

Published: 14/07/2009 at 12:00 AMNewspaper section: Business Thai Airways International yesterday launched a price war against its main low-cost competitor AirAsia.

Pandit Chanapai, the executive vicepresident of THAI’s commercial department, promotes the carrier’s new promotional fare campaign.

THAI executives said the “Fly THAI, get more” promotional fares would put AirAsia’s offering to shame, and would help it claw back customers from other airlines.
The national carrier is the latest to enter the discount fray. Airlines are continuing to undercut each other in a desperate bid to cope with a market marred by global recession and the H1N1 pandemic.
Profit margins have fallen by the wayside as carriers attempt to generate cash flow and fill flights.
“We are telling the public there is another good option for buying air tickets and that we are ready to compete squarely with other airlines,” said Pandit Chanapai, executive vice-president for THAI’s commercial department.
THAI hopes the campaign will help it fight back against the low-cost carriers and increase its flight load to 70%, he said.
The promotional fares are 20% less than THAI’s seasonal norms.
All-inclusive round-trip fares start at 2,810 baht for domestic flights and 4,300 baht for regional flights.
Up to a third of seats on all THAI flights will be sold at special rates.
Promotional tickets must be purchased by July 31, with travel made before Sept 30.

Bron:Bangkok Post