Thai Airways partners with airlines to boost US tourism, drops direct flight plans

The Star

2 days ago

BANGKOK: Thai Airways International (THAI) has reaffirmed its readiness to attract American tourists to Thailand through collaboration with airline partners, despite shelving plans for direct flights to the United States.
THAI CEO Chai Eamsiri explained that the Federal Aviation Administration has recently upgraded Thailand's aviation safety rating from Category 2 (CAT2) to Category 1 (CAT1), placing it among countries that meet international aviation standards.
As a result, Thai airlines are once again permitted to operate direct flights to US airspace.
However, after conducting a feasibility study on resuming direct flights to the United States, THAI found the long-haul routes to be economically unviable due to the substantial fuel costs involved.
Additionally, return flights from the US would require a reduction of more than 100 passenger seats, while cargo transport would be severely restricted due to fuel constraints limiting payload capacity.
"From past flight data, THAI operated in the US market for over a decade, but consistently recorded losses. Even after adjusting strategies, including stopovers, profitability remained elusive,' he said.
'The long distances to destinations like Los Angeles and New York—requiring 17-hour flights—result in high operational costs. Today, after reassessment, we concluded that resuming direct flights would remain financially impractical."
Chai further noted that despite direct flights being discontinued, THAI still maintains a presence in the American market. Currently, 30 per cent of its revenue comes from European travellers, followed by Asia, while the US market remains promising.
By leveraging partnerships with six American airlines that operate within the region, THAI has managed to sustain revenue growth in the US market, he affirmed. - The Nation/ANN