THAI goes for the gizmos
National carrier upgrades inflight products and service to stay in the forefront of competition

Thai Airways International (THAI) is spending seven billion baht to upgrade inflight amenities and service in the face of intense competition from Singapore Airlines, and to differentiate itself from low-cost carriers.

According to Mr Vasing Kittikul, its executive vice president for commercial affairs, THAI has been slow in tapping new inflight technology and as a result has lost some ground to Singapore Airlines, its main rival.

"It costs a lot of money. So we had to do it gradually, step by step," said Mr Vasing, but he added that all inflight upgrade will be completed by the year's end and that some of the upgraded planes were back in service already.

"Inflight products are now a key factor in the survival of full-service airlines in the increasingly competitive industry. Besides, they help differentiate them from no-frills airlines," he said.

The upgraded planes are meant to ply medium- to long-haul destinations and are equipped with modern amenities such as VDO-on-demand for personal entertainment and more comfortable seats incorporating the latest cushion technology.

These facilities will also be extended to aircraft connecting popular destinations such as Phuket, Narita in Japan and Hong Kong.

Thirty-one aircraft comprising eight A330-300s, six B777-300s, eight B777-200s and nine B747-400s have already been fitted with the enhanced version of seats in business and economy class. The seats in B777-200s and B747-400s will also come with a personal screen for interactive games and other entertainment such as VDO-on-demand.

Apart from upgrading its existing fleet, THAI has bought new aircraft supporting latest inflight technology and enhanced seating. It's placed orders for three new Airbus A340-500s with more comfortable business and premium economy seats and wider screen for personal entertainment.

The first A340-500 went into service last March and the remaining two will become operational by October this year.

Five new A340-600s have also been bought, with the first expected to be pressed into service next month, and the last not later than December. And next year it will add the A380, the largest passenger aircraft in the world, to its growing fleet.

Meanwhile, THAI is studying the option of providing passengers internet access onboard. On the reservations front, it's contemplating a total overhaul of operations by switching to e-ticketing to encourage online booking and boost its appeal among travellers in the FIT (frequent independent travellers) segment of the market.

At the same time, it also hopes to cooperate and coordinate with travel agents to attract corporate clients.

The already cut-throat competition among airlines is set to heat up further as the industry becomes more liberalised.

"We have to be proactive in such a challenging situation," said Mr Vasing.

As such, THAI is planning to increase flight frequency on major European and regional routes, and open new ones as well.

Currently, it's exploring the possibility of operating flights to Johannesburg, South Africa, and Moscow and connecting to promising new destinations in China and Japan.
Bangkok Post May 2005 www.bangkokpost.com
Jarunee Taemsamran