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AVIATION
BOONSONG KOSITCHOTETHANA
Thai Airways International has launched a major sales campaign - unusual for the high season - to halt an expected downturn in traffic demand in the last quarter of this year.
THAI hopes the "Follow Your Dreams" promotion featuring fares almost as low as those of no-frills carriers will enable it to fill up to 80% of its seats in the October-December quarter, for which seat-occupancy below 75% had been forecast.
The unusual promotion is part of the national carrier's attempt to deal with a slowdown in demand as air travel is hit by global financial turmoil and domestic political unrest.
Analysts have forecast that THAI will post a loss of 9.6 billion baht this year. The airline has already recorded a loss of 7.04 billion baht in the first half of the year, partly due to foreign exchange losses and high fuel prices.
THAI is now counting on the campaign to help shore up its 2008 financial performance - or at least prevent losses being greater than anticipated.
The "Follow Your Dreams" campaign specifically targets outbound travellers - who contribute 20% of THAI's total revenue - as Thais and residents seem to be cutting back on overseas travel in the holiday season due to the sluggish economy.
"This is a period of crisis for airlines, but a period of opportunity for consumers," THAI vice-president Pridi Boonsue said yesterday, referring to attractive offers being made by airlines.
Krittaphon Chantalitanon, THAI director for Thailand, Indochina and Burma, said the fares offered under the campaign are "rock-bottom prices" that are attractive enough to entice demand and to alarm rival airlines.
For instance, an all-inclusive Bangkok-London economy return is now under 49,000 baht, compared with 56,000 baht quoted by Qantas for the same route and class.
While THAI is still making some profit from this campaign, the prime objective is to maximise revenue, said Mr Krittaphon.
Several thousand seats on flights from Bangkok to scores of destinations are being offered, subject to availability and travel conditions.
However, not all the seats on specific flights will be available.
Passengers in groups of four or more each get an additional discount of 500 baht for economy class and 1,000 baht for business class.
THAI shares closed yesterday on the SET at 9.60 baht, unchanged, in trade worth 19.56 million baht.
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