Thai Airways International, or THAI, is looking to boost revenue from its airline partners as part of its plan to tackle one of its major weaknesses. The carrier aims to increase its revenue from inter-line and code-share partners to 25% of its annual revenue. Currently, revenue from partners account for 5% of the carrier’s yearly revenue.
Charamporn Jotikasthira, THAI president, is disappointed in the airline’s inability to capture income from its cooperation with other airlines, as many other carriers do, as a way to drive profit.
Last year, THAI’s revenue came in at 193 billion baht, much lower than the 204 billion baht the previous year.
Mr. Charamporn spoke at the International Air Transport Association event during a panel discussion, and stated that the airline is open to code-sharing and inter-line agreements. The carrier is hoping to boost code-share partnerships with leaders in the industry, including Star Alliance.
Many Thai-based airlines have benefited from code-sharing partnerships, including Bangkok Airways, which has used the strategy as a way to boost traffic instead of pursuing networking expansion to reach new markets.
Bangkok Airways currently has 21 code-share partners, which are expected to generate nearly one-third of its passengers this year.
THAI, a much larger airline in all respects, has just a few more code-share partners than Bangkok Airways, including its THAI Smile subsidiary.
THAI’s revenue is projected to be in line with last year’s level, according to Mr. Charamporn. Operating revenue for the first quarter of the year was 50.2 billion baht, 2.7% lower than last year.