How is the French market faring for Thai Airways in 2015?
Jean-Michel Nasse - Since the start of the year, the French market has been very soft, especially in the leisure segment. Thailand is struggling to return to its pre-political events of late 2013. Overall French BSP revenue for this destination for the period January-May 2015 fell by around 18%, while Thai Airways 'only' fell by 13%, which mechanically means we are gaining market share. But this is still a Pyrrhic victory, a far cry from the expectations we had for 2015. But it is important to keep things in perspective. In Bangkok, between January and May 2015, the fall in the overall French BSP was 20%, but only 5% for Thai Airways, thus we are gaining market share increasing from 23% from January to May 2014 to 28% this year. The non-stop Paris-Bangkok flight remains a good selling point, and the occupancy rate is between 75% and 80% on this route. Paradoxically, it is on the Thai domestic market that things are not going so well, particularly on Phuket where we are under heavy attack from the competition because we are fighting on equal terms with a compulsory stopover at our hub.
What about flights with stopovers?
Jean-Michel Nasse - Things are more favourable for destinations beyond Thailand. Even though Burma is experiencing a slight downturn, which we hope will be temporary, THAI remains the No. 1 carrier on this route from France, with a market share of 48%. Cambodia, Laos and even Vietnam are very buoyant, and we are slowly starting to develop in Manila.
What do the front classes represent in all this?
Jean-Michel Nasse - High-contribution traffic continues to perform well. In Business Class, more than 6,600 passengers have put their trust in us since the start of the year, almost half of whom bought their tickets in France. In First Class, the results are more mixed, but sales in France have also strengthened to reach 28% of total sales. This may not seem like much, but the First Class product is much more popular in Asia.
What are the consequences of the restructuring plan for France?
Jean-Michel Nasse - For the moment, the restructuring plan mainly affects Thailand. In Paris, as in the other resorts around the world, we are naturally being asked to make as many operating savings as possible, and the various budgets are being revised downwards. In May and June, the traditional low season and low traffic period, we have reduced our rotations to 6 flights a week, cancelling the Wednesday flight to adapt to demand. But the service is still maintained at its highest level. Madrid is continuing to operate for the time being, but if frequencies are reduced, the French market will not really be impacted because there is no real link between our two countries. Frankfurt and London have or will have a reorganisation of their frequencies this year. Frankfurt is keeping its daily midday A380, but has abandoned its daily evening flight since the beginning of May. London will receive the A380 on July 1 for its daily rotation, replacing the usual B747. In return, however, the evening service will be discontinued. In France, nothing is changing. Paris keeps its daily non-stop A380.
How do you combine ambition and savings?
Jean-Michel Nasse - For an airline such as Thai, this simply means rationalising the network, positioning more aircraft on high-growth routes - which, it has to be said, are in Asia - and closing unprofitable stations or temporarily reducing frequencies. It is also necessary to adapt the type of aircraft on other destinations until traffic picks up again. At the same time, in the coming months THAI will be disposing of aircraft that are too energy-hungry to compensate for the arrival of newer, and therefore more economical, aircraft. This is not nothing more than sound fleet management.
What will be the keys to success, particularly with business customers?
Jean-Michel Nasse - Business travellers want flexibility, availability and a wide choice of services. Thai airways has all these advantages. Our team is very attentive and responsive, particularly Serge Rigal, who manages the Key Accounts portfolio and who is in constant contact with Travel Managers and business platforms who serve our partners. I sincerely believe that this quality of listening makes all the difference, much more than a price level, however attractive that may be. After-sales service is also very important. When you travel, anything can happen. So it's reassuring to know that the airline you fly with will always be there for you, whatever the circumstances. Thai Airways remains an accessible airline for its customers.
Will you be developing other services, particularly for business customers?
Jean-Michel Nasse - We are considering a number of improvements for business customers, including Limousine service but it's still too early to talk about it in detail.
Do you have any information about plans for a 3rd international airport in Bangkok?
Jean-Michel Nasse - I have no information on this subject. I understand that U-Tapao airport near Pattaya is being expanded to relieve Suvarnabhumi airport of a certain type of traffic, particularly low-cost, but I don't know any more than that. What is certain is that Suvarnabhumi, which has already reached or exceeded its maximum capacity, will have to expand over the next few years. to accommodate a growing flow of passengers.
