Corporate Focus

“We consider three things in the present scenario — People to People, Business to Business and Government to Government
relationship.”



CHANTOUCH SRINILTA
GENERAL MANAGER NEPAL & BHUTAN
Thai Airways International Public Co Ltd

45 Years of Flight Over Himalayas

“We consider three things in the present scenario — People to People, Business to Business and Government to Government relationship.”

CHANTOUCH SRINILTA GENERAL MANAGER NEPAL & BHUTAN

Thai Airways International Public Co Ltd

Thai Airways International Public Company Limited, the national flag carrier of the Kingdom of Thailand, has achieved an unprecedented height in Nepal. A glorious history of complete 45 years of operation itself speaks volumes.

It was in 1968 that Thai’s 72-seater French-built Caravelle SE210 aircraft landed at the Tribhuvan International Airport (TIA). According to Thai Airway’s General Manager for Nepal and Bhutan, Chantouch Srinilta, the long journey of Thai Airways is full of ups and downs. “Many international airlines have come and gone after Nepal Government adopted a liberal sky policy, but Thai has survived, tackling all the challenges, and tackling them pretty well,” says Srinilta.

The Airways was founded in 1960 as a joint venture of Thailand’s domestic carrier, Thai Airways Company (TAC), and the Scandinavian Airlines System (SAS). In 1960, flights were inaugurated from Bangkok to nine overseas Asian destinations. The airline launched its intercontinental services in 1971, first to Australia, followed by flights to Europe in 1972, and to North America in 1980.

Thai Airways operates domestic, regional and intercontinental flights from its home base in Bangkok to the key destinations around the world and within Thailand. Thai airways has had a market in Nepal, for over four decades and the Nepali market has allowed them be more mature. For Thai, every moment is a turning point, as the global airlines have been pacing up rapidly. Thai takes pride in the fact that they have unlocked Nepal as a new tourism destination for the world shares the GM. They were the first airline to operate jet service from Kathmandu. It was indeed a memorable moment to cherish in Nepal’s aviation history. In addition, Thai also introduced the first computerized reservation system in Kathmandu in February 1985 and provided this service to its leading travel agents since 1990. The Royal Orchid Lounge at the TIA used to be the only lounge operated by Thai in the 1990s.

“We consider three things in the present scenario — People to People, Business to Business and Government to Government relationship,” Srinilta says. Maintaining a long-term relation between Nepal and Thai Airways is a top priority for the latter. In the people to people scenario, Thai people have a religious connection to Nepali people as 95 per cent of the Thai population is Buddhist and Nepal is the birth place of Lord Buddha.

In term of Business to Business, Nepali airlines are also landing in Thailand. Here, in Nepal we have been landing since long time back and we have also kept in mind that times are changing, shares the GM. “There is huge potential for the national flag carrier of Nepal if they regain their reputation from glory days” says GM. “Government plays a role in elevating the standard by not only to directing, but also educating the airlines about how the rest of the world is working at their best. So, if we work together we can grow much,” Srinalta says.

For a sound relation between both the nations, Thai Airways wants to create a good linkage between Nepal and Thailand. Nepal being a land blessed with mountains that are more than 8,000 meters tall airlines are reliable means to bring in more tourists and Thai Airways is doing its best to increase the figure. Thai Airways further believes that the tourists they bring here in Nepal choose tourism activities over just strolling around Thamel.

In terms of Corporate Social Responsibility (CSR), Thai organizes blood donation programme on every 31st July. Battling with the challenges lying ahead, Thai also strives to keep the goodwill image of the company intact. It might seem that the cost allocation of air ticket and packages are high, but the quality that they have not compromised justifies the cost. Thai Airways has kept in mind that a good air business also leads to healthy revenue. Thai believes that offering proceeds for CSR will strengthen the Company’s financial status and support its business expansion projects. It also believes that products and service improvement will elevate THAI to a consistent rank of top three airlines in Asia and top five in the world.

Recently, Thai Airways announced special offers including promotional fare marking its 44th year of successful operation in Nepal. In the auspicious occasion the airlines announced free excess baggage for students, and businessmen traveling to Australia and China and free hotel service in Bangkok for destinations like Hong Kong. Similarly, the airlines announced free excess baggage up to 10kg for Nepali students traveling to Australia. Also, targeting Nepali travelers Thai airways unveiled special SOTO (tickets sold outside the country of departure) fare for Japan and special labor fares to Kuala Lumpur. The company also encourages its human resources to acquire new skills and attain international standards of professionalism. Thai Airways contributes to the advancement of all types of technology related to the world’s commercial aviation industry.

Thailand Tourism Authority and Royal Thai Embassy say that the number of Nepali travelers going to Thailand had increased significantly in recent years. Around 31,000 Nepalis visited Thailand in 2011, out of which 25.5 percent travelled for holiday and 41 percent for seminar. Thai also handed over a memorial park situated in Kakani to the local community and is providing fund regularly for its maintenance and development.

At present if offers flights to more than 70 destinations in 34 countries with a fleet of 99 aircrafts. According to the GM, The Thai airways have same investment every year and they are seriously concerned about the return. They also have good marketing strategies and are looking forward to sustain in this market in coming years. They are willing to invite more people to come and visit Nepal and enjoy time here. For this Thai is expecting Tourism authorities of Nepal to offer more packages. “If Nepal Tourism Board also is ready to cooperate we can contribute further to tourism”, Srinilta believes. Thai also has three latest model of Airbus and they are starting business on different parts of world.

“As a mature airways, we are striving our best not to compromise in our fleet size and service standards,” shares Srinilta. So, to catch up in the burgeoning market demand in Nepal, they have a strategy of adjusting the number of flights as per market demand. In the beginning, Thai operated a once a week flight between Bangkok and Kathmandu and soon after that, one more flight was added to cope with the high demand of passengers. Thai started daily flights with A300-600 aircraft since the end of October 1997. In the context of growing demand of air seats to/from Nepal, they added three more flights in 2008. Based on the request of different tourism related associations like NATTA, PATA, HAN and NTB, they began to run 10 flights per week. Now Thai has seven flights a week with a configuration of 30 business class and 279 economy class seats.

Thai Airways has also played a good role in providing service to the outbound Nepali Tourist. In Srinilta’s words, the airlines is assisting Nepal in worldwide promotion as a major tourist destination through various media like in-flight magazine “Sawadee” and Royal Orchid Holiday Packages tours. Thai have joined hands with the Tourism Authority of Thailand by frequently organizing different events like Trade Fairs, Educational/ Medical fairs, familiarization trips for agents and media, Thai Food festivals, Thai Puppet shows etc.

They have also offered attractive packages and special fares for students and leisure travelers. It was in the “Visit Nepal Year 1998” and during the “Nepal Tourism Year 2011”. Thai spread good word all over to promote Nepal They have joined hands with the organizers of Asian Mountain Bike championship in 2008 by offering special fares to the participants all around the world. They have own handling service in Nepal with own operational, ground handling and administrative staff directly under the Thai set up of course.

Srinilta further adds Thai can do a lot if the Nepal Tourism Board and other government bodies of Nepal also provide lucrative packages to further boost the Tourism of both countries. Though Thai Airways doesn’t fully keep the Labour Traffic as a first priority, it is also a part of the business. Since the very beginning, they have had different segments of traffic like the royalties, frequent flyers, government officials, diplomats, expats, students and the tourists.

However, the persisting bandhs, political instability, lackluster government policies create hurdles for a smooth run. So, there is a long way to go for Thai Airways in Nepal and for that the hurdles in the paths should be cleared.

Swot Analysis

STRENGTHS

- Thai brings quality tourist.

- Thai have strong position in global market.

- Aware about the nation and society in environmental conservation.

- Run the business on the basis of fair competition.

WEAKNESS

- More work is yet to be done to seek for the reasons why people don’t fly in Thai Airways.

OPPORTUNITIES

- More exploration in Nepali market.

- Nepal is a lucrative tourism destination.

THREATS

- Never-ending Bandh.

- Airlines market hasn’t flourish on a high rate.