Case Study Of Thai Airways

1508 Words7 Pages
Background Thai Airways was founded 1960 and they just celebrated her 55 th Anniversary on May 1, 2015. That means it has been doing business for half a century. TG is equal to smooth as silk because Thailand is famous for silk so they used like a silk shape and for the logo they are using lotus which represent the culture or influence of Buddhism. There are two main aircrafts that they use. They are 102 aircrafts: Boeing and Airbus. Boeing 787, also called (Dream Liner) has better and bigger window compare to other aircrafts and bigger space for luggage and confortable seats for customers and there are many more that benefits to customers. For routes and destinations, Thai airway flies to international flights to over 70 destinations and for…show more content…
US’s economy continued to grow up with the decreasing rate of unemployment. Thai’s economic was recovered by the domestic spending from both domestic spending and private investment which is a result from the government. In January 26, 2015 Thai Airways has implemented the transportation plan that approve by State Enterprise Policy Committee. Thai Airways try to stop bleeding by reducing flight frequency in aircraft to suit market demand. Increasing the domestic operation by Thaismile in the core domestic rotes. For example, Bangkok-ChiangMai and Bangkok-ChiangRai. Developing product and services such as business class service upgrade and modern onboard communications system. Thai Airways received the best international airline and received new 8 aircraft in 2015 as well. According to Transformation Plan, The operating loss showed as THB 1,304million and total expenses decreased by 11.2%. The net profit is about $141.7 million and 51% is government owned. And the operating looses which is 20% decrease in fuel expenses. The other income increased by the delay delivery of economy class seats (THB 3,401). The increase revenues is the main point from the good services and increasing the number of passengers as well as it increase the income for the…show more content…
Secondly, TG has a strong backing from the Thai government. Online Thai Airways is another major strength, which is offering a good service and a separate class of consumers. And it is also one of the longest non-stop air flights. Another advantage of Thai Airways is have a strong management team and all of business functions are running smoothly and shows that they have a strong relationship with suppliers and partners. And also It flies to 71 destination in 34 countries. Therefore, they have low barriers of market entry. Weaknesses The weaknesses of Thai Airways are lack of diversification between small and medium cities sized of Thailand and also the numbers of international routes are restricted. So, the market share growth is less due to intense competition from other international airlines. Thai Airways also have weak performance of mail and freight divisions. Another major weakness of Thai Airways was diseconomies of scale. Its means the company have huge clients and can’t cut its cost. By increase the number of clients, they should reduce the costs but they didn’t happened every
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