Bangkok loses its status as a hub between Europe and Australia

The sharp reduction in routes to Australia offered by Thai Airways International is likely to affect Bangkok's attractiveness as a transfer hub between the island-continent and Europe, particularly in high-contribution markets.
Thai-Airways-A380
A Thai Airways Airbus A380

In the end, there is a relatively limited choice of connections between Europe and Australia. From the old continent, it is above all Singapore Airlines which offers the most extensive Australian network, with half a dozen cities and convenient, short connections. But the Singaporean airline also faces competition from Emirates - partner of Australian national carrier Qantas - and Qatar Airways, as well as Cathay Pacific and Thai Airways International.

Thailand's national carrier used to offer the most attractive fares from Europe, particularly on high-cost services. But it has decided to throw in the towel on the transfer passenger segment. Although the airline will continue to fly to Australia, it will drastically reduces its capacity between Bangkok and SydneyMelbourne, Perth and Brisbane. The company, which is still suffering from a difficult financial situationis seeking to reduce its losses in a number of sectors. However, it believes that transfer traffic to Australia remains unprofitable due to very low economy fares.

Thai Airways International will therefore eliminate 10 weekly frequencies out of 39 by the end of the month with the introduction of the IATA winter schedules. Less than one million seats will be offered year-on-year, compared with the 1.2 to 1.4 million seats offered in recent years.

However, the Thai airline will continue to serve its four destinations in Australia, but will offer fewer flights to Sydney, Melbourne and Brisbane. According to the Centre for Asia Pacific Aviation, capacity to Brisbane will fall by 43%, Sydney by 36% and Melbourne by 21%. Thai Airways International's seat capacity in Australia will therefore be reduced by almost 30%, returning to its 2006 level.

Only Perth in Western Australia will retain its daily frequency and will even see its capacity increased, with Thai introducing an Airbus A330 instead of a Boeing 787. Melbourne will continue to be served by the brand new Airbus A350, Brisbane by the Boeing 787-8 while Sydney will be served by a Boeing 747-400.

Thai Airways International is the largest carrier in the Australia-Thailand segment, accounting for 58% of all seat capacity. It is followed by Emirates with 18%, Jetstar with 17% and Qantas with 7%.